Current and non-current provisions are as follows:
| AUGUST 31, 2025 | AUGUST 31, 2024 | |||
|---|---|---|---|---|
| (in millions of euros) | Current | Non-current | Current | Non-current |
| Reorganization costs | 12 | — | 17 | — |
| Employee claims and litigation | 21 | 25 | 19 | 26 |
| Tax and social security exposures | 2 | 9 | 5 | 15 |
| Contract termination and loss-making contracts | 8 | 32 | 3 | 38 |
| Client/supplier claims and litigation | 7 | 8 | 7 | 9 |
| Provisions for negative netassets* | — | 5 | — | 6 |
| Other provisions | 8 | 16 | 15 | 14 |
| TOTAL PROVISIONS | 58 | 95 | 66 | 108 |
* Investments in companies accounted for using the equity method that have negative net assets (see note 8).
In Brazil, Sodexo and its main competitors have a different interpretation to that of the Brazilian tax authorities on the deductibility of PIS/COFINS taxes on certain purchases made at a 0% rate.
Several proceedings are underway, either at the initiative of the tax authorities, which have notified Sodexo do Brasil Comercial of a reassessment in respect of credits recognized in 2016 of 10 million euros (including penalties and late payment interest), or at the initiative of the Company, which has filed several claims in the courts. One of these proceedings initiated by Sodexo do Brasil Comercial was suspended by the judge until the Supreme Court’s decision on another company’s case.
In February 2023, the Supreme Court issued its decision, which was unfavorable to the company concerned. The judges essentially ruled that ordinary law may provide for limitations on the use of PIS/ COFINS credits, provided that such law respects all constitutional principles, in particular equality of treatment of taxpayers and free competition. This decision, which should not be considered automatically unfavorable for the individual cases of each taxpayer, does not affect the appeals filed by Sodexo, which will continue.
Sodexo do Brasil Comercial believes that it has different and strong enough arguments to ultimately succeed in court on this issue. After consultation with its advisors, Sodexo considers that its chances of success in these proceedings are good and that to date the risk of an outflow of resources associated with the PIS/COFINS credits deducted since 2016 remains unlikely; therefore, no provision has been accounted for in the consolidated financial statements as of August 31, 2025.
On October 9, 2015, the company Octoplus filed a complaint with the French Competition Authority (Autorité de la concurrence) concerning several French meal voucher issuers, including Sodexo Pass France (Pluxee France).
On December 17, 2019, the French Competition Authority ruled against the meal voucher issuers and fined Sodexo Pass France (now Pluxee France), jointly and severally with Sodexo S.A., for a total amount of 126 million euros. This amount was entirely paid by Sodexo Pass France (now Pluxee France) during the previous fiscal years. An asset was recognized with respect to the amounts paid (126 million euros) and reclassified in “Assets held for sale” as of August 31, 2023.
Sodexo S.A. lodged an appeal against the decision with the Paris Court of Appeal and the hearing was held on November 18, 2021. On November 16, 2023, the Paris Court of Appeal upheld the conviction handed down by the French Competition Authority. Contesting this decision, Sodexo S.A. then lodged an appeal with the Court of Cassation (Cour de cassation) against the ruling, which was found to be incorrect by the Versailles Court of Appeal on January 28, 2025. The Court of Cassation, whose decision is scheduled to be handed down on October 15, 2025, is expected to refer the case back to the Paris Court of Appeal, sitting in a different composition, to rule on Sodexo S.A.'s appeal against the French Competition Authority's decision.
The separation agreement entered into in the context of the Pluxee spin-off includes a commitment by Pluxee to compensate Sodexo for any liability or damages related to the above litigation.
In December 2021, Sodexo S.A. received a notification for a proposed tax reassessment concerning fiscal years 2016, 2017 and 2018. Another proposed tax reassessment was issued by the French tax authorities in December 2022 for fiscal years 2019, 2020 and 2021 in order to replicate certain reassessments it had initiated during the previous tax audit.
All these proceedings were completed in the first half of Fiscal 2025.
Group subsidiaries can also be subject to tax audits, certain of which may result in reassessments. The main disputes are described above. In each case, the risk is assessed by management and its advisors and any charges deemed probable are recorded as provisions or tax liabilities.
The Group is not aware of any other governmental, judicial or arbitral proceedings which are outstanding or threatened and which may have, or have had in the past 12 months, material effects on the Group’s financial position or profitability.
Sodexo is also involved in other disputes arising in the normal course of its business. The Group does not expect that liabilities relating to these disputes will in the aggregate be material to its activities or to its consolidated financial position.
