Nov 2 (Reuters) – Sodexo said on Wednesday it expects organic revenue growth of between 6% and 8% for fiscal years 2024 and 2025 and a margin above 6% in 2025, as it seeks to refocus on catering services and accelerate the growth of its voucher business.
The French collective catering and services group will unveil later on Wednesday its 2025 strategy based on improving and developing its catering services offer to meet the changing needs of consumers, and on the accelerated growth in Benefits and Rewards services.
“Today, with our strategy of refocusing and accelerating, and thanks to a constant focus on operational execution, we expect our performance to continue to improve in the years to come,” said Sophie Bellon, President and CEO, in a statement ahead of Sodexo’s Financial Markets Day.
Medium-term targets reflect the resumption of mass catering after the easing of coronavirus restrictions, as well as a good outlook amid inflation, which the company hopes will push customers to outsource their catering services more and their benefits.
Sodexo, one of the largest collective catering providers in the world, alongside Britain’s Compass, said it expected its restaurant voucher and gift voucher business to reach the low end of the double-digit organic growth in 2024 and 2025 and an operating margin above 30% in 2025.
According to Sodexo, capital expenditure for Benefits & Rewards Services should represent nearly 10% of revenue per year from 2022 to 2025. The group had decided not to open this division to external capital in May.
The group last week forecast organic revenue growth of between 8% and 10% for 2023 and an underlying operating margin close to 5.5% after fiscal 2022.
Sodexo will hold its Investor Day in Paris from 11:00 a.m. (10:00 GMT). (Written by Diana Mandiá in Gdansk, French version Elena Smirnova, edited by Kate Entringer)
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