French food caterer Sodexo on Friday reported 3% growth in its first-quarter sales, in line with its forecasts and helped by a rise in corporate events and more workers returning to the office.
The company's quarterly sales came in at €6.29 billion, up 3.1% from a year earlier.
A consensus provided by the company had expected sales of €6.28 billion.
Spin Off
Sales grew in all geographies "due to pricing, new contract ramp-ups and continued volume growth, particularly in the Corporate services, Sports & Leisure and Education," chief executive officer Sophie Bellon said in a statement.
The revenue figures exclude Pluxee, Sodexo's vouchers' unit which the group plans to spin off and do a separate listing in February. Bellon said plans for Pluxee's spin-off and listing are on track.
Employers have turned to Sodexo's vouchers such as meal and fuel cards to help workers cope with the cost-of-living crisis, while staff returning to offices and higher pricing have also boosted its catering business.
'Bodes Positively'
JP Morgan analysts in a note called the earnings report a "sound start to the year," and said this "bodes positively for the sector overall," including for British peer Compass Group.
Sodexo is still raising prices for its services to cushion the effect of inflation, but at a slower pace than last year, finance chief Marc Rolland said in a call with journalists.
Educational Contracts
Last month, Sodexo announced it had successfully retained six educational contracts across Ireland, with a collective value of €6.3 million over their lifetime of two to five years.
The contracts for catering and hospitality services are with the University of Galway, three post-primary schools in the Republic, and two in the North.
“We are delighted to be continuing these relationships and supporting our clients with services to meet the diverse needs and expectations of today’s student population,” said Deirdre Saunders, divisional director, Sodexo Ireland.
