Sodexo unveils new strategy plan to target growth
According to the group, it hopes to deliver an increase of 8% to 10% in organic revenue growth for FY2023, as well as an underlying operating profit margin of around 5.5%
Global catering company Sodexo has reportedly laid out its 2025 strategic plan today (2 November) to generate “sustainable, profitable growth” and to create value for its shareholders and its stakeholders.
The group reports that its strategy to “refocus and accelerate” is based on three things; to refocus on food services and facilities management, to accelerate profitable growth of its ‘benefits and rewards’ services, and to strengthen Sodexo’s impact as a sustainable company.
According to the group, by successfully executing this strategy it hopes to deliver an increase of 8% to 10% in organic revenue growth for FY2023, as well as an underlying operating profit margin of around 5.5% at constant rates.
In addition, the group hopes for a 6% to 8% increase in organic revenue growth for FY24 and 25 and a margin of above 6% in 2025.
A “leaner” leadership team will also reportedly oversee a simplified and more effective organisation, with Sodexo announcing the creation of a growth and commercial role, a tech and services function, as well as a newly-appointed group chief impact officer.
Sophie Bellon, CEO and chairwoman of Sodexo, said: “Fiscal 2022 was a turning point. Sodexo has strengthened its competitiveness and has made good progress against the priorities I set out when I became CEO. Today, with our strategy to refocus and accelerate, and with a relentless focus on execution, we expect to continue to improve our performance in the coming years.
“I am confident that Sodexo will deliver solid organic growth and that we can return our underlying operating profit margin to over 6%. Our people are essential to the successful delivery of our plans, and I want to thank them for their excellent work in delivering great service to our clients and consumers every day; contributing to the positive impact we have on society and our local communities.”
She added: “I firmly believe that we are on the right track to deliver long-term profitable growth and to be the world leader in sustainable food and valued experiences at every moment in life: learn, work, heal and play.”
