(AOF) – The Pluxee total spin-off project is progressing and listing on Euronext Paris will take place on February 1, 2024 following a General Meeting of Shareholders to be held on January 30, 2024, Sodexo indicated. Pluxee, which brings together its restaurant voucher and gift voucher activities, will hold an investor day on January 10 to present its strategy and outlook for the 2024 financial year and the medium term. Sodexo specifies that after its spin-off, “Pluxee will benefit from a solid balance sheet to implement its growth strategy”.
As of August 31, 2023, the liquidity position is 859 million euros. Pluxee has also secured “solid financing”, including a bridging loan of 1.5 billion euros and a revolving credit facility of 0.65 billion euros.
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Key points
– Business services group, mainly on site – collective catering, meal vouchers, created in 1966;
– Turnover of €21.1 billion, generated from 4 types of clientele – businesses and administrations for 52%, health and seniors for 27%, education for 16% and on-site services;
– 2 large geographic 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 the organization;
– Company 42.8% owned by the founding Bellon family (57.1% of voting rights), Sophie Bellon chairing the board of 12 members, Patrice de Talhouët being general manager;
– Solid financial strength rated A with debt ratio of 28.7% and leverage of 1.7.
Challenges
– 2025 strategy of refocusing 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,
– offers to customers: deployment of Zeta, architecture of technological platforms offering digital payment solutions and, on site, deployment of specific applications (MyWayApp for residents, I PROMISE, BlueFox, The Good Eating Cy…),
– ecosystem of start-ups with Sodexo Ventures, working in particular 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 reduction of 64.9% by 2030, compared to 2019, in absolute emissions,
– reduction, by 2025, of 50% of waste on 85% of sites,
– integration of SME suppliers into the value chain,
– implementation of “rise with Sodexo”: Wastewatch food waste reduction program, single-use items and plastic waste, sustainable food and “low-carbon” meals, sustainable sourcing;
– Advancement of the “any food, anytime, anywhere” diversification strategy in the United States with the acquisitions 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 the customer loyalty rate, 94.5%;
– Inflation in food and energy compensated by indexation and renegotiations;
– High expectations for benefits & rewards services: continued momentum, particularly in the first half, leading to an increase of 12 to 15% in turnover and an operating margin of 30% in 2023;
– After a dynamic 1st quarter (+ 35.7% for revenues), confirmation of the 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 distribution rate of 50%.
Sector sheet – Business services
A new entity in employee benefits
Pluxee, the division specializing in employee benefits of the services giant Sodexo, will take off on the stock market in 2024. This activity benefits from strong dynamism with organic growth in the third quarter (ended at the end of May) higher than expectations (+25 .5% versus 17.5% expected). The new entity will thus be able to better compete with its competitor Edenred. Since its split from the Accor group in 2010, this company has seen its activity jump and almost double. Having become the world leader in meal vouchers, it even recently joined the flagship stock market index of the Paris market, the CAC 40. This success comes from targeted acquisitions, international development and successful digitalization.