(BFM Bourse) – The group has published separate financial statements for this division which is preparing to become independent. An investors day will be organized on January 10 before an IPO the following month.
The timetable is accelerating for the listing of Pluxee. This company, currently a subsidiary of the collective catering group Sodexo, brings together the “employee benefits and rewards” activities of the former CAC 40 resident, namely meal vouchers or gift vouchers.
Sodexo has decided to split this activity by listing it on the stock market via a distribution of shares to its holders. The idea is to crystallize the value of this division, the market preferring pure players to companies bringing together several activities. The group thus intends to reproduce the success of Edenred, direct competitor of Pluxee, which was separated from its former parent company Accor in 2010 before developing successfully, to the point of joining the CAC 40 last June (Accor having for its part left the flagship index in 2020).
Sodexo published this Tuesday the forecast timetable for the Pluxee spin-off. First of all, the group will hold a capital market day on January 10, that is to say an investors day, dedicated to its future ex-subsidiary. Shortly after, on January 30, a general meeting will be organized to approve the split (which is hardly in doubt given that the Bellon family holds nearly 58% of the voting rights and that Sophie Bellon chairs and manages the company) . Subject to approval of the introduction prospectus (which will be published a few hours before the start of the capital market day), the listing of Pluxee will then take place on February 1 on the Paris Stock Exchange.
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Impacts on accounts
Sodexo also published the separate accounts of Pluxee adopting a new accounting nomenclature. The operating profit is for example replaced by the current operating profit.
Thus, during the 2022-2023 financial year ended at the end of last August, Pluxee generated revenues of 1.05 billion euros, a current operating profit of 285 million euros for a corresponding margin of 27.1% and a profit net of 83 million euros. These accounts include in particular an impact of headquarters costs invoiced to Pluxee for a total of 25 million euros.
“We see in detail that they also restated 47 million euros of income linked to cash housed in Pluxee entities. This does not change anything for the net profit but above all penalizes the margin which goes from 33, 1% to 27.1% (also including the impact of seat costs, Editor’s note) while Edenred’s margin is 36%. This is the little bug”, notes a financial intermediary who in passing scratches the timing of the announcement. “On December 19, many managers are absent,” he argues.
Cash flow generation stood at 430 million euros. At the balance sheet level, the net cash position amounts to 859 million euros.
A 5 billion euro subsidiary
On the Paris Stock Exchange, Sodexo shares fell 0.7% around 10:40 a.m. following these announcements after gaining more than 2% in early trading.
“The decision to split Pluxee was considered positive (by the market Editor’s note) and as potentially offering the opportunity to unleash its full potential, in particular thanks to better autonomy and the possibility of making economies of scale”, a explained in a recent Stifel note. “This decision likely reflects the more limited synergies between meal vouchers and food and facilities management services,” the consultancy added.
Sodexo has never indicated what valuation the group was targeting for Pluxee. But in a note published at the end of October, Bank of America estimated that this division could be worth 5 billion euros, based on its gross operating profit forecast (431 million euros) for the current financial year, and by applying a multiple of 11.6. Sodexo’s collective catering activities are valued by the American bank at 12.6 billion euros. So in total 17.6 billion euros, or 20% more than the group’s current market capitalization on the stock market.
Julien Marion – ©2023 BFM Bourse
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