As part of its food or other material supply contracts with manufacturers and distributors, the Group can earn discounts, rebates, or credits related to the purchases made under those contracts. Vendor Discounts and Allowances (VDAs) are earned by the volume of materials purchased under the contract, by the periodic purchase volumes exceeding certain contractually defined thresholds, or as fixed amounts in exchange for certain commitments such as vendor exclusivity arrangements. The Group retains VDAs to the extent consistent with the Food services or Facilities Management services contract signed by the client and with applicable law.
VDAs are typically recognized as a deduction from cost of sales in the period the purchases are made based on the volume of materials purchased in the period and the contractual VDA rate. VDAs earned based on purchase volumes reaching contractually defined thresholds are recognized in proportion to the purchases made as soon as the Group considers it probable that the thresholds will be reached. If the Group does not consider it probable that its purchase volumes will reach the contractually defined thresholds, any VDAs earned are recognized if and when the thresholds are reached. Fixed-amount VDAs are recognized immediately unless certain conditions need to be met in order for them to be earned or if there is a clear link between the amount promised and the future purchase volumes. In such cases, fixed-amount VDAs are recognized over the period of the related commitment.
The cash flow statement analyzes changes in net cash and cash equivalents, defined as cash and cash equivalents less current bank overdrafts and credit bank balances payable on demand that form an integral component of treasury management.
In accordance with IFRS 8 “Operating Segments”, the segment information presented below has been prepared based on internal management data as monitored since the first quarter of Fiscal 2023 by the Sodexo Leadership Team, which is Sodexo’s chief operating decision-maker.
Group revenues and underlying operating profit are monitored by region. These regions meet the definition of operating segments under IFRS 8.
Sodexo’s operating segments and groups of operating segments are as follows:
The operating segments that have been aggregated carry out similar operations – both in terms of type of services rendered and the processes and methods used to deliver the services – and have similar economic characteristics (notably in terms of the margins they generate).
Segment assets and liabilities are not presented as they are not included in the chief operating decision-maker’s measurement of segment performance.
No single Group client or contract accounts for more than 2% of consolidated revenues.
| FISCAL 2025(in millions of euros) | NORTH AMERICA | EUROPE | REST OF THE WORLD | CORPORATE EXPENSES | GROUP TOTAL |
|---|---|---|---|---|---|
| Revenues | Revenues NORTH AMERICA 11,180 |
Revenues EUROPE 8,593 |
Revenues REST OF THE WORLD 4,301 |
Revenues CORPORATE EXPENSES |
RevenuesGROUP TOTAL24,074 |
| Business & Administrations | Business & Administrations NORTH AMERICA 2,948 |
Business & Administrations EUROPE 4,746 |
Business & Administrations REST OF THE WORLD 3,708 |
Business & Administrations CORPORATE EXPENSES |
Business & AdministrationsGROUP TOTAL11,402 |
| Sodexo Live! | Sodexo Live! NORTH AMERICA 1,560 |
Sodexo Live! EUROPE 707 |
Sodexo Live! REST OF THE WORLD 54 |
Sodexo Live! CORPORATE EXPENSES |
Sodexo Live!GROUP TOTAL2,321 |
| Healthcare and Seniors | Healthcare and Seniors NORTH AMERICA 3,504 |
Healthcare and Seniors EUROPE 1,987 |
Healthcare and Seniors REST OF THE WORLD 352 |
Healthcare and Seniors CORPORATE EXPENSES |
Healthcare and SeniorsGROUP TOTAL5,843 |
| Education | Education NORTH AMERICA 3,168 |
Education EUROPE 1,153 |
Education REST OF THE WORLD 187 |
Education CORPORATE EXPENSES |
EducationGROUP TOTAL4,508 |
| Purchases of consumables and change in inventory | Purchases of consumables and change in inventory NORTH AMERICA (3,371) |
Purchases of consumables and change in inventory EUROPE (1,927) |
Purchases of consumables and change in inventory REST OF THE WORLD (1,285) |
Purchases of consumables and change in inventory CORPORATE EXPENSES — |
Purchases of consumables and change in inventoryGROUP TOTAL(6,583) |
| Personnel costs(1) | Personnel costs(1) NORTH AMERICA (5,085) |
Personnel costs(1) EUROPE (4,364) |
Personnel costs(1) REST OF THE WORLD (1,999) |
Personnel costs(1) CORPORATE EXPENSES (52) |
Personnel costs(1)GROUP TOTAL(11,500) |
| Other costs | Other costs NORTH AMERICA (2,079) |
Other costs EUROPE (1,935) |
Other costs REST OF THE WORLD (806) |
Other costs CORPORATE EXPENSES (32) |
Other costsGROUP TOTAL(4,852) |
| Underlying operating profit(2) | Underlying operating profit(2) NORTH AMERICA 645 |
Underlying operating profit(2) EUROPE 367 |
Underlying operating profit(2) REST OF THE WORLD 211 |
Underlying operating profit(2) CORPORATE EXPENSES (84) |
Underlying operating profit(2)GROUP TOTAL1,139 |
