Sodexo Sa · EURONEXT:SW
Sodexo Sa — Q3 2024 Earnings Presentation
23 slides from Sodexo Sa's earnings presentation, Jul 2, 2024
Slide 1: Q3 Revenues Fiscal 2024
Q3 Revenues Fiscal 2024 July 2, 2024
Slide 2: Summary
Summary 01 Q3 Revenues Fiscal 2024 02 Review of Operations 03 Outlook 04 Q&A 05 Figures have been prepared in thousands Appendices of euro and published in millions of euro Please refer to Appendix 6 for Alternative Performance Measure definitions Q3 Fiscal 2024 Revenues - July 2, 2024 2
Slide 3: 1. Q3 Revenues Fiscal 2024
1. Q3 Revenues Fiscal 2024 Q3 Fiscal 2024 Revenues - July 2, 2024 3
Slide 4: Solid Organic Revenue Growth at +6.8%, in line with expectations
01 Q3 revenues First-half Fiscal Fiscal 20242024 highlights Solid Organic Revenue Growth at +6.8%, in line with expectations Sodexo Q3 Revenue North America +9.0% €6,074m +5.6% Currency effect Scope Change -0.2% -1.0% Europe +5.4% Organic growth +6.8% +7.2% excl. Accounting change Rest of the World
Slide 5: Continuous positive momentum in Net new business in Q3
01 Q3 revenues First-half Fiscal Fiscal 20242024 highlights Continuous positive momentum in Net new business in Q3 North America Europe Rest of the World University of Cincinnati Wellington College Mosaic Group Sodexo Campus & Sodexo Live! teaming Delivering high quality food & hospitality Enhancing
Slide 6: Deceleration in price increases compared to last quarter
03 Q3 01 revenues Review Fiscal 2024 of Operations 3. 1. 3. 2. Deceleration in price increases compared to last quarter ▬ Food inflation now averaging low single digit • Continued deceleration in Europe • Recent pick-up in North America and Brazil ▬ Labor inflation is decelerating slightly, now belo
Slide 7: 2. Review of Operations
2. Review of Operations Q3 Fiscal 2024 Revenues - July 2, 2024 7
Slide 8: North America revenue
03 Review of Operations 02 North America revenue 46% of FY23 Revenues North America €2,904m +9.0% Business & Healthcare Sodexo Live! Education Administrations & Seniors Restated Organic Growth +12.1% +30.7% +2.4% +5.6% • Favorable impact of new business • Strong per capita spend in Sports • Unfavora
Slide 9: Europe revenue
03 Review of Operations 02 Europe revenue 36% of FY23 Revenues Europe €2,096m +5.4% Business & Healthcare Sodexo Live! Education Administrations & Seniors Restated Organic Growth +5.9% -0.4% +7.7% +4.4% • Price increases, higher volumes • +6.2% excluding base effect of • Positive impact of price inc
Slide 10: Rest of the World revenue
03 Review of Operations 02 Rest of the World revenue 18% of FY23 Revenues +5.9% excl. Accounting Rest of the World €1,074m +3.6% change Business & Healthcare Sodexo Live! Education Administrations & Seniors Restated +5.3% Organic Growth +2.7% excl. Accounting change ~x2 +10.8% +3.9% • Strong growth
Slide 11: 3. Outlook
3. Outlook Q3 Fiscal 2024 Revenues - July 2, 2024 11
Slide 12: Fiscal 2024 guidance confirmed
03 04 Outlook Fiscal 2024 guidance confirmed Organic Growth Top of the +6% to +8% range UOP Margin +30 to +40 basis points at constant currencies Q3 Fiscal 2024 Revenues - July 2, 2024 12
Slide 13: 4. Q&A
4. Q&A Q3 Fiscal 2024 Revenues - July 2, 2024 13
Slide 14: 5. Appendices
5. Appendices Q3 Fiscal 2024 Revenues - July 2, 2024 14
Slide 15: Q3 Fiscal 2024 Revenue breakdown
05 06 Appendix 1 Q3 Fiscal 2024 Revenue breakdown REVENUES BY ZONE (in million euros) Q3 2024 Q3 2023 Organic Growth External Growth Currency Effect Total Growth North America 2,904 2,658 +9.0% -0.4% +0.6% +9.2% Europe 2,096 2,042 +5.4% -2.7% --% +2.7% (1) Rest of the World 1,074 1,055 +3.6% +0.6% -
Slide 16: 9M Fiscal 2024 Revenue breakdown
05 06 Appendix 2 9M Fiscal 2024 Revenue breakdown REVENUES BY ZONE (in million euros) 9M 2024 9M 2023 Organic Growth External Growth Currency Effect Total Growth North America 8,660 8,157 +9.7% -0.2% -3.3% +6.2% (1) Europe 6,350 6,068 +7.1% -2.1% -0.4% +4.6% (2) Rest of the World 3,165 3,110 +5.0% -
Slide 17: Q3 Fiscal 2024 exchange rates
05 06 Appendix 3 Q3 Fiscal 2024 exchange rates Average rate Closing rate Closing rate Closing rate Average rate Average rate 9M 24 9M 24 FY 23 05/31/24 1€ = 9M 24 9M 23 vs. 9M 23 at 05/31/2024 at 08/31/2023 vs. 08/31/23 U.S. Dollar 1.081 1.049 -3.0% 1.085 1.087 +0.1% Pound Sterling 0.861 0.875 +1.6%
Slide 18: Modelling details for FY2024
05 06 Appendix 4 Modelling details for FY2024 (At constant rates) Scope change effect on Other income Net financial Tax rate Fiscal 2024 revenues and expenses expenses c.22% ~ -1% ~ €-40m ~ €100m (including effect of Homecare capital gain) Q3 Fiscal 2024 Revenues - July 2, 2024 18
Slide 19: New segment reporting following evolution of the On-site Services organization
06 Appendix 5 05 New segment reporting following evolution of the On-site Services organization As part of the streamlining of the organization, from Fiscal 2024 some contracts or operations have been reallocated between segments, with main impacts in Europe from Healthcare & Seniors to Education. R
Slide 20: Alternative Performance Measure - Definitions
05 06 Appendix 6 Alternative Performance Measure - Definitions Organic growth Underlying operating margin Organic growth corresponds to the increase in revenue for a given period Underlying operating profit margin corresponds to Underlying Operating profit (the "current period") compared to the reve
Slide 21: Financial calendar
06 Appendix 7 05 Financial calendar October 24, 2024 December 17, 2024 January 7, 2025 Fiscal 2024 Fiscal 2024 Fiscal 2025 Results Annual Shareholders Q1 Revenue Meeting These dates are purely indicative and are subject to change without notice. Regular updates are available in the calendar on our w
Slide 22: Sodexo key figures
06 Appendix 8 05 Sodexo key figures As of August 31, 2023 ▬ Founded in 1966 by Pierre Bellon ▬ As at 08/31/2023, Bellon SA holds 42.8% of capital (57.9% of voting rights) €22.6bn revenues ▬ Our purpose is to create a better everyday for everyone to build a better life for all 430,000 employees 80 mi
Slide 23: Investor relations contacts
06 Appendix 9 05 Investor relations contacts Head of Investor Relations ▬ Virginia JEANSON Tel: + 33 1 57 75 80 56 virginia.jeanson@sodexo.com Deputy Head of Investor Relations ESG Investor Relations Engagement Lead ▬ Juliette KLEIN ▬ Alina CAZACU Tel: + 33 1 57 75 80 27 Tel: + 33 1 57 75 83 11 juli