Sodexo slashes full-year guidance as COVID and war in Ukraine fuel uncertainty

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French catering and catering group Sodexo has lowered its forecast for organic revenue growth for the full year, citing uncertainties related to COVID-19 and the war in Ukraine.

The Paris-based company now expects organic revenue growth around the low end of its 15% to 18% range previously forecast for its 2022 fiscal year ending August 31.

“Environment of uncertainty”

“The current environment remains fraught with uncertainty. There is a resurgence of localized outbreaks of COVID, several mobilizations in Russia will not take place and testing centers in the UK are closing earlier than expected,” said CEO Sophie Bellon in a statement. .

The group, which ranks among the world’s largest catering companies alongside Britain’s Compass Group, said the Omicron and Delta variants of the coronavirus impacted the recovery in the second quarter, but added that it was seeing a recovery since the end of February.

Second half recovery

“In the second half of the year, we are confident that the return to work and Sports & Leisure events will continue to recover,” Bellon said. “However, the environment remains uncertain with intermittent local outbreaks of COVID-19 and the war in Ukraine.

“We are convinced that we can manage the inflationary pressure on the margins at the end of the year. The currencies should give us a good tailwind.”

The company posted half-year underlying operating profit of 538 million euros, slightly beating analysts’ forecast of 530 million euros.

The group’s turnover amounted to 10.26 million euros, up 19.4%, with “a strong recovery in all segments seriously affected by COVID”, he added. .

The group serves businesses, the armed forces, hospitals, schools and event participants.

Read more: The caterer’s compass is close to reaching pre-pandemic revenue levels

News by Reuters, edited by ESM- your source for the latest news from the A brand. Click subscribe to subscribe ESM: European Supermarket Magazine.

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