Sodexo Shares Rise After Q3 Revenue Beat
Investing.com
Published Jul 01, 2022 04:00AM ET
By Scott Kanowsky
Investing.com -- Shares in Sodexo (EPA:EXHO) climbed to near the top of the pan-European STOXX 600 on Friday, after the food services group reported better-than-expected revenues in the third quarter.
The French caterer posted quarterly consolidated sales of €5.52 billion, rising organically by 18.3% compared to the previous year and topping analyst forecasts of €5.33 billion. The company partly credited the uptick to a post-pandemic recovery at its key on-site services business, as more workers returned to the office and convention activity picked up.
“Growth in the third quarter has been strong in all activities, segments, and geographies, helped by post-Omicron On-site volume recovery and price revisions. Benefits & Rewards Services is accelerating in all regions," said Sodexo chair and chief executive Sophie Bellon.
The group also confirmed its guidance for 2022 organic growth, with the figure expected to come in around the bottom of the 15% - 18% range. Annual underlying operating profit is also projected at close to 5%.
Bellon added that the company will also move ahead with a plan to re-organize its on-site services unit, saying it will bring "agility and speed" to the division. The proposal will be presented, along with the group's mid-term targets, at its Capital Markets Day on November 2.
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