(Reuters) – French catering and food services group Sodexo onWednesday said it expected 2023 revenue and profit margins to hit 2019 levels, as events and retail sites restarted and more people returned to offices.
The outlook came as the company reported better-than-expected full-year revenue, driven by all-time-high client retention rate and strong new business growth, despite the inflationary backdrop.
The Paris-based firm posted annual revenue of 21.13billion euros, compared to a 20.73 billion euros forecast by analysts polled by the company.
Sodexo, which serves businesses, armed forces, hospitals,schools and events attendees, said revenue of its main On-site Services unit reached 99% of its 2019 levels in the fourth quarter.
Pointing to the unit’s return to pre-pandemic levels, the group now expects revenues and margins for 2023 to return to 2019 levels.
For 2023, Sodexo forecasts organic revenue growth of between 8% and 10%, driven by further progress in new business and inflation, and underlying operating profit margin around 30%.
(Reporting by Federica Mileo in Gdansk; Editing by Josephine Mason)
