Sodexo grew organic sales by 13.9% in 2023. Photo: Shutterstock.
Sodexo’s North American sales rose in 2023 as more employees returned to the office and sports fans, concert and convention goers spent money on events.
Paris-based food service provider Sodexo reported a 13.9% increase in organic sales in North America in fiscal 2023. The company said sales increased across all segments, with organic sales increasing 23.4%, particularly in Business and Administration. Return to the office. Strong attendance at concerts, conventions and sporting events boosted sales for his Sodexo Live, the food service provider’s events business.
“I wanted to call for a big return to live events after the coronavirus crisis. Sodexo Live! It’s been a great year. Record attendances to stadiums, Paris boats and airport lounges. We brought back visitors and fans, and our average spend per person increased,” Sodexo CEO Sophie Bellon said on an investor call last week.
Sales in the Healthcare and Senior Living segment also increased, with organic growth increasing by 8.8%. The company attributes this to a recovery in retail cross-selling and large-scale mobilization. In the education sector, growth increased by 8.8%, driven by higher university attendance, higher prices, and further growth in retail sales and event catering. Universities’ internal growth rate increased by 13.4%, but K-12 schools were hurt by government cuts to exempt status.
Sodexo Chief Financial Officer Marc Rolland said food inflation appears to be softening, with pricing starting to outpace food cost inflation in North America and Brazil.
Regarding the environment, Scope 1, 2, and 3 emissions decreased by 5.4% in 2023. Additionally, Bellon said the company is working to reduce waste, but has not yet reached a 50% reduction at the sites where it is based. He introduced WasteWatch, a waste reduction platform to help monitor and reduce operational waste. However, the number of facilities taking advantage of the program is increasing, and the program now covers 57% of total food ingredient costs, up from 46%. Sodexo he aims to achieve 80%.
The company also made progress on its leadership gender balance goals. Veron noted on the conference call that women make up 42% of the group’s senior leadership.
Going forward, Sodexo plans to focus on digital to meet consumer demands.
“We know that consumers want more flexible, more personalized, more sustainable offers, healthier food, better taste and the digital enablement to deliver it all. ,” Bellon said. “We believe that by leveraging our expertise to adapt traditional food models and complement existing infrastructure with advanced food models, we can grow our business faster.”