Trade receivables are initially recognized at the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services and are subsequently measured at amortized cost less impairment losses recognized in the income statement.
Impairment is recorded to reflect expected credit losses, which are estimated using a provision matrix (applying the simplified approach provided for in IFRS 9 “Financial Instruments”). This method consists of applying a separate impairment rate based on historical credit losses for each aging balance category, adjusted, when necessary, to take into account prospective factors.
| AUGUST 31, 2025 | AUGUST 31, 2024 | |||||
|---|---|---|---|---|---|---|
| (in millions of euros) | GROSS AMOUNT | IMPAIRMENT | CARRYING AMOUNT | GROSS AMOUNT | IMPAIRMENT | CARRYING AMOUNT |
| Advances to suppliers | 15 | — | 15 | 15 | — | 15 |
| Trade receivables | 3,238 | (109) | 3,129 | 3,260 | (115) | 3,145 |
| Other operating receivables | 447 | (10) | 437 | 366 | (3) | 363 |
| Prepaid expenses | 173 | — | 173 | 178 | — | 178 |
| Other receivables | 1 | — | 1 | 1 | — | 1 |
| TOTAL TRADE RECEIVABLES AND OTHER CURRENT OPERATING ASSETS | 3,874 | (119) | 3,755 | 3,820 | (118) | 3,702 |
The maturities of trade receivables as of August 31, 2025 and August 31, 2024 respectively were as follows:
| AUGUST 31, 2025 | AUGUST 31, 2024 | |||||
|---|---|---|---|---|---|---|
| (in millions of euros) | GROSS AMOUNT | IMPAIRMENT | CARRYING AMOUNT | GROSS AMOUNT | IMPAIRMENT | CARRYING AMOUNT |
| Less than 3 months past due | 448 | (5) | 443 | 441 | (10) | 431 |
| More than 3 months and less than 6 months past due | 55 | (10) | 45 | 59 | (11) | 48 |
| More than 6 months and less than 12 months past due | 51 | (15) | 36 | 49 | (16) | 33 |
| More than 12 months past due | 71 | (62) | 9 | 79 | (58) | 21 |
| TOTAL TRADE RECEIVABLES DUE | 625 | (92) | 533 | 628 | (95) | 533 |
| Total trade receivables not yet due | 2,613 | (17) | 2,596 | 2,632 | (20) | 2,612 |
| TOTAL TRADE RECEIVABLES | 3,238 | (109) | 3,129 | 3,260 | (115) | 3,145 |
During the fiscal years presented, the Group was not affected by any significant change resulting from known client defaults. In addition, given the geographic dispersion of the Group’s activities and the wide range of client industries, there is no material concentration of risk in individual receivables due but not written down.
Trade payables are classified as financial liabilities measured at amortized cost, as defined in IFRS 9 “Financial Instruments”. These financial liabilities are recognized at their principal amount, which represents a reasonable estimate of their fair value in light of their short maturities.
The Sodexo Group has set up several reverse factoring programs in its main operating countries, which give its suppliers the opportunity of being paid in advance. In practice these programs involve sales of trade receivables to a factor, organized by Sodexo. Relations between the parties concerned are governed by two totally separate contracts:
Under these reverse factoring programs, the characteristics of the payables are not substantially modified (in particular, the payment terms, including due dates, are maintained). These payables continue to be recognized in trade payables. Cash flows relating to these payables are included in cash provided by/(used in) operating activities.
Employee-related liabilities mainly include short-term employee benefits (see note 5.1).
