Sodexo Forecasts Top-End Revenue Growth in 2024, Boosted by Paris Olympics and Pricing Increases
On Friday, French food service company Sodexo announced it anticipates its organic revenue growth for 2024 to reach the upper end of its forecasted 6% to 8% range, fueled by the Paris Olympics and an increase in pricing. Sodexo Live!, a division of the company, has been selected to provide meal services for athletes at the upcoming Paris Olympic and Paralympic Games, which is expected to significantly boost revenues in the fiscal fourth quarter.
Additionally, after spinning off its voucher business, Pluxee, at the beginning of February, Sodexo anticipates a 4% increase in pricing throughout the fiscal year, concluding on August 31.
Sodexo recently reported a half-year organic sales growth of 8.5%, amounting to 12.1 billion euros ($12.9 billion), aligning closely with the consensus forecast of 12.03 billion euros provided by the company. “This organic growth was fueled by pricing for about half and net new business and some volume growth for the other half,” the company stated.
Furthermore, the company’s underlying operating profit saw a significant rise of 16.9% in constant currency, reaching 612 million euros over the six months ending in February, surpassing the consensus estimate of 600 million euros.
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