(AOF) – With its Vita by Sodexo program, the group guarantees all its eligible employees worldwide a minimum base of social benefits including parental leave and caregiver leave, life insurance and a line of assistance. The launch of Vita by Sodexo reflects the Group’s commitment to contributing to the personal, financial and family well-being of all its employees, regardless of the country in which they work or the Group entity to which they belong.
This global benefits program, Vita by Sodexo, establishes a minimum standard in all countries where Sodexo operates on three fundamental benefits.
The first is a help line, accessible 24 hours a day, 7 days a week, which allows employees to benefit from personal support, whether in terms of practical advice or psychological support. This support is a continuation of the measures implemented since 2015, reinforced in particular since the Covid-19 epidemic.
The second is life insurance, which allows employees to guarantee the financial security of their families in the event of the unexpected. Sodexo wants to ensure that the people for whom their employees are responsible receive at least the equivalent of one year of the employee’s base salary in the event of the latter’s death.
The third is minimum parental leave and carer leave, which allows parents and carers to take paid leave to care for their children and/or loved ones when they need it most. Sodexo is committed to ensuring a minimum of 12 weeks of paid leave for the first parent, with the ambition of reaching 14 weeks in most countries, 2 weeks of paid leave for the second parent and 5 days of paid leave from caregiver.
Vita by Sodexo will be gradually rolled out in most countries where Sodexo is present, knowing that the roll-out schedule may vary depending on the country. By the end of 2024, Vita by Sodexo will be deployed in at least 60% of the countries where Sodexo operates.
These benefits will be offered in all Sodexo Group entities and in their entirety, in compliance with local legislation and the obligation, where applicable, of discussion with trade unions and social partners. Each country and entity will specify in its regulations or policy documents the conditions applicable locally to these benefits.
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Key points
– Business services group, mainly on sites – collective catering, meal tickets, created in 1966;
– Turnover of €21.1 billion, generated with 4 types of clientele – companies and administrations for 52%, health and seniors for 27%, education for 16% and on-site services;
– 2 major geographical areas – Latin America for 38%, Europe, the United States and Asia for 62%;
– Business model based on 4 pillars: dynamic growth in the United States, transformation of catering models – offer of take-out snacks, intelligent distribution and rationalization of logistics-, active management of the business portfolio, efficiency of organization;
– Company 42.8% owned by the founding Bellon family (57.1% of voting rights), Sophie Bellon chairing the 12-member board, Patrice de Talhouët being CEO;
– Solid financial strength rated A with debt ratio of 28.7% and leverage of 1.7.
Challenges
– 2025 strategy to refocus on catering services and selectivity in benefits and rewards services:
– 2023: 8 to 10% revenue growth and operating margin close to 5.5%,
– 2024 and 2025: 6 to 8% revenue growth and operating margin of +6%;
– Innovation strategy:
– digitalization of the company,
– offer to customers: deployment of Zeta, architecture of technological platforms offering digital payment solutions and, on sites, deployment of specific applications (MyWayApp for residents, I PROMISE, BlueFox, The Good Eating Cy, etc.),
– ecosystem of start-ups with Sodexo Ventures, notably working in China for the consumer experience (Meican);
– “Better tomorrow” environmental strategy validated by the SBTi:
– aiming for carbon neutrality in 2025 for scopes 1 and 2 and a 64.9% reduction by 2030, vs 2019, in absolute emissions,
– reduction, by 2025, of 50% of waste on 85% of sites,
– integration of SME suppliers in the value chain,
– implementation of “rise with Sodexo”: program to reduce Wastewatch food waste, single-use items and plastic waste, sustainable food and “low-carbon” meals, sustainable sourcing;
– Progress of the “any food, anytime, anywhere” diversification strategy in the United States with the takeovers of Foodie, nourish and Frontline, distributors of take-out products;
– Implementation of the new organization: reduction in the number of countries (53 at the end of 2022 vs 56 in 2021), operational responsibilities split into 3 regions – North America, Europe and the rest of the world for on-site services – and specific governance for benefits&rewards services.
Challenges
– Monitoring of the customer loyalty rate, 94.5%;
– Food and energy inflation offset by indexation and renegotiations;
– High expectations for benefits & rewards services: continued momentum, particularly in the 1st half, leading to a 12 to 15% increase in revenue and 30% operating margin in 2023;
– After a dynamic 1st quarter (+35.7% for revenues), confirmation of 2022-23 objectives: revenue growth of 8 to 10% and an operating margin close to 5.5%;
– Dividend of €2.4 for the 2021-2022 financial year, i.e. a payout rate of 50%.