Sodexo sees around 8% growth in annual sales boosted by the Olympics
French food caterer Sodexo (EPA:EXHO) said on Friday it expects 2024 organic revenue growth at the top of its 6% to 8% range, boosted by the Paris Olympics and higher pricing.
The company’s division Sodexo Live! was chosen to prepare meals for the athletes during the Paris Olympic Games and the Paralympics. That will drive up revenue during Sodexo’s fiscal fourth quarter, it said.
The catering group, which spun off its voucher business Pluxee at the start of February, said pricing should also increase by 4% during the year ending on Aug. 31.
Sodexo reported half-year organic sales growth of 8.5% to 12.1 billion euros ($12.9 billion), broadly in line with a consensus forecast of 12.03 billion euros provided by the company.
“This organic growth was fueled by pricing for about half and net new business and some volume growth for the other half,” the company said in a statement.
Underlying operating profit rose 16.9% in constant currency to 612 million euros in the six months through February, beating a consensus estimate of 600 million euros.
($1 = 0.9400 euros)
That’s correct! French food service giant Sodexo is expecting a strong year with around 8% growth in annual sales [Reuters]. This positive outlook is fueled by two key factors:
- Paris Olympics 2024:Â Sodexo has been chosen as the official caterer for the upcoming Olympics and Paralympics in Paris. This major event will significantly boost their sales revenue during their fiscal fourth quarter, which ends on August 31st, 2024.
- Increased Pricing:Â The company is also implementing a strategy of raising prices by around 4% throughout the year. This will help them offset inflation and generate additional revenue.
Sodexo’s half-year results already reflect this positive trend. They reported an organic sales growth of 8.5%, exceeding analyst expectations. This growth was attributed to a combination of factors, including price hikes, new business acquisitions, and a slight increase in sales volume.