• Q3 Organic growth at +19%
  • 2nd half guidance revised up

Q3 Fiscal 2021 revenues

Sodexo CEO Denis Machuel said:

“Third quarter growth in revenues is better than expected in all activities and segments driven notably by the significant recovery compared to the first lockdowns in March 2020. Since then, the rebound has been progressive despite the third quarter being impacted by the April lockdown in France and the emergence of new variants of the Covid-19 virus. For the fourth quarter, we expect the recovery to continue, particularly in the Americas.

The expected fourth quarter progress should result in better than expected organic growth and margin in the second half which has led to an upward revision in our guidance.

We remain convinced that once vaccination is rolled out, our activities will rapidly come back to pre-covid levels. First-time outsourcing interest is growing, and existing clients are buying more services as they look for expertise, simplicity, and efficiency. Our new business pipeline remains solid.”

Q3 Highlights

  • Q3 Fiscal 2021 Group revenue was 4,484 million euro, up +14.7%. Currencies impacted revenues by -4.2% and the net M&A contribution was -0.2%, resulting in Group organic revenue growth of +19.0%
  • On-site Services organic revenue growth was +18.8% reflecting the significant recovery compared to the first lockdowns in March 2020, with strong recovery in Foodservices up +26%, while growth of the more resilient FM services accelerated to +11%.
    • Business & Administrations was up +10.1%, at 78% of Fiscal 2019 levels. Corporate Services recovery remains slow in North America and was impacted by the April lockdown in France. However, the performance elsewhere was solid, and well above Fiscal 2019 in Asia and Latin America. Sports & Leisure recovery is very progressive in North America, with airline lounges beginning to open up, but still very largely closed in Europe. Energy & Resources and Government & Agencies are continuing to grow. 
    • Healthcare & Seniors was up +9.2%, back up at 96% of Fiscal 2019 levels. While hospitals are seeing more elective surgery in the quarter, visitors remain excluded in most hospitals and therefore the retail activity remains, in most cases, closed. 
    • Education was up +73.5%, at 79% of Fiscal 2019 levels. Schools in Europe were fully open during the quarter, even though there were occasional class closures and a French lockdown in April. In North America, schools reopened, running at about 89% of Fiscal 2019 levels. While Universities saw more students on campus, the run rate was still well below Schools.
  • Benefits & Rewards Services organic revenue growth was +23.8%, and revenues at 96% of Fiscal 2019 levels. In Employee Benefits, revenue was up +19.6%, with issue volume up +15.8% and reimbursement volumes up +22.5%, as restaurants around Europe re-opened. Services Diversification activities were up +42.3% with strong recovery in Health & Wellness and Public Benefits, while Mobility continued to be significantly impacted by low business travel activity.   
  • In April, the Group issued $1.25 billion through an inaugural US dollar bond offering. The issue was in two tranches: $500 million due April 2026 with a coupon of 1.6% and $750 million due April 2031 with a coupon of 2.7%. As a result, the Group has pushed back its maturities and rebalanced its debt in US dollars. There are no covenants attached to the Group’s debt.
  • During the quarter, Sodexo pursued its engagements in terms of corporate responsibility with: 
    • the signature of a declaration of intent with IUF, the global trade union federation for workers throughout the food chain, reinforcing its commitments and priorities towards promoting the right to a safe and healthy working environment, a first in the sector. 
    • the launch in France of the program Impact+ an innovative approach to accompanying the development of Sodexo suppliers that are committed to an inclusive business model. 
    • in May 2021, the launch of « La Passerelle », in Clichy-sous-Bois, a new economic model with a positive social impact, in priority neighborhoods. The economic driver behind this project is a vegetable processing plant which will anchor the model in providing jobs to local inhabitants, enhancing social cohesion and promoting more local and plant-based diets.

Please note that the Fiscal 2021 results will be announced on Wednesday, October 27, 2021 and not October 28, 2021 as previously indicated. 


The improvement in the quarter on quarter trends since the beginning of the fiscal year has been progressive and better than our prior assumptions. In the second half we are expecting an improvement in the Americas, including a return to full opening in Schools and a much better start to the new academic year in Universities.  

In this context, we are upgrading our guidance to:

  • Second half Fiscal 2021 organic growth: around +15%. 
  • Second half Fiscal 2021 Underlying operating margin at constant rates: around 3.5%. 
  • Fiscal 2021 cash conversion: maintained at more than 100%.

Post-Covid crisis, the Group aims to return to sustained growth and to drive the Underlying operating profit margin back over the pre-Covid level. 

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