Sodexo H1 Profit Rises, Lifts FY23 Organic Revenue Growth View; Plans To Spin-off, List BRS

(RTTNews) – Sodexo S.A. (SDXAY.PK), a French food services and facilities management firm, reported Wednesday that its first-half group net profit grew 30.6 percent to 440 million euros from 337 million euros last year.

Earnings per share were 3.01 euros, up 31 percent from 2.30 euros a year ago.

Underlying net profit was 475 million euros or 3.25 euros per share, compared to 339 million euros or 2.32 euros per share a year ago.

Revenue grew 17.8 percent to 12.09 billion euros from last year’s 10.26 billion euros. Revenue growth was 12 percent at constant exchange rates, and 13.4 percent organically.

Looking ahead, based on the positive business momentum in the first half, the company upgraded the Group organic growth guidance for fiscal 2023 close to 11 percent.

The company previously expected organic revenue growth for fiscal 2023 to be between 8 percent and 10 percent.

Underlying operating profit margin is still expected to be close to 5.5 percent, at constant rates.

Further, Sodexo said its Board of Directors has unanimously approved the project to separate the two business units by spinning-off and listing Benefits & Rewards Services or BRS through the distribution of BRS shares to Sodexo shareholders.

The transaction is expected to take place during 2024 following the completion of several customary steps, including consultation of the employee representative bodies, and remains subject to market conditions.

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