Sodexo sees 27% total group revenue decline
Founded by Pierre Bellon in 1966, the company operates in 64 countries and serves 100 million consumers daily, with a total of 420,000 employees worldwide
Sodexo has reported that for the first quarter fiscal 2021, total group revenue declined 27% to €4.4bn (£3.2bn) from €6.07bn (£4.5bn) for the same period last year, attributed to the impact of Covid-19.
Founded by Pierre Bellon in 1966, the company operates in 64 countries and serves 100 million consumers daily, with a total of 420,000 employees worldwide.
The catering company was impacted heavily by the postponement of global events such as the Tokyo Olympics and Rugby World Cup.
Sodexo revealed that after the first quarter performance, it expects an organic decline for the first half Fiscal 2021 to be between 20% and 25%.
Denis Machuel, CEO of Sodexo said: “The revenue trend has improved again this quarter, despite the start of the second wave in November in most of our geographies. All regions were better, even though the North American activities remain very impacted by the Covid-19 pandemic, especially in Education, Corporate Services and Sports & Leisure.
“The teams have been very actively adapting cost structures and contract terms to ensure that ramping up contracts is profitable. The restructuring program is moving forward.”
He added: “As a result, although revenues are in line with guidance, this first quarter has been better than expected in terms of operating performance, and so despite the uncertainty around the evolution of the Covid-19 pandemic, our first half Fiscal 2021 Underlying operating profit margin target is now to be at least 2.5%.”
