Adds details
Jan 6, (Reuters) – French caterer Sodexo EXHO.PA Friday’s first quarter sales beat the market expectations. On-site businesses saw a rise in activity and increased prices, which helped them surpass levels pre-pandemic.
The company provided a consensus estimate of 6.17 Billion euros by top analysts. However, the group’s sales reached 6.33 billion Euros ($6.65billion) while On-site revenues surpassed 2019 and increased 11.9% organically.
On-Site Services continues to benefit from… a higher attendance in all geoographies in the workplace in stadiums and convention centers, as well as in Universities,” Sophie Bellon, Chief Executive, stated. She also added that the price rises had helped the division.
As the sector is facing rising costs, caterers have been trying to negotiate tariffs and supplier contracts. Sodexo claimed it passed on most of the increased costs to its clients but has encountered difficulties in some cases, especially with schools and the public sector.
The company’s Benefits & Rewards division which distributes vouchers to employees for businesses, grew by 23.4% during the third quarter.
Sodexo stated in November that it will expand its vouchers business. This is because companies are looking for more ways to keep staff employed in tight labor markets. It also wants to offer greater flexibility to employees who work remote.
On Friday, the caterer confirmed that it will be guiding customers in 2023.
($1 = 0.9515 euros)
Reporting by Olivier Sorgho, Editing by Tom Hogue & Vinay Dwivedi
((olivier.sorgho@thomsonreuters.com))
These views and opinions are solely the opinions and views of the author. They do not reflect the opinions and policies of Nasdaq, Inc.