Sodexo reports Q3 Fiscal 2020 Results, says COVID-19 impacted company revenue

Sodexo has reported the Q3 Fiscal 2020 revenue results. The company’s Q3 Fiscal 2020 Group revenue stayed 3,910 million euro, a decrease of -31.2%. The company says overall the currencies also impacted its revenues by -1.7% in which the M&A contribution was +0.3%, which cause organic revenue growth to decline -29.9%, better than the compared hypotheses of -33% provided in April. The food services declined -44%, FM services -2% and Benefits & Rewards -22.8%.

The growth of its organic on-site services revenue remained -30.1% which reflect the significant impact of the COVID-19 pandemic when Group’s business on many sites closed or stayed only partially operational.

The company, involved in providing services globally related to improving Quality of Life, has lost about one third of its Q3 revenues compared to last year because of COVID-19 pandemic. However, its on-site business which include broad geographic mix, strong Facilities Management (FM) and large integrated accounts along with the input of Benefits & Rewards showed a little rebound.

On start of the COVID-19 pandemic, the company stayed focused on health and safety related measures for its workforce. The company closed a significant number of its sites either fully or partially while at the same time the company identified all means to protect its cash conditions and reduce its business costs. Amid the global economic crisis, company also launched a new program named ‘Rise with Sodexo’ to help company’s clients to rapidly and safely reopen the sites.

CEO of Sodexo, Denis Machuel said, “This multi-service approach brings together a wide range of our services with secure protocols, approved by the Sodexo Medical Advisory Council and carrying a Bureau Veritas hygiene verification label.”

The company managed to stabilize its Free cash flow favorably since April. It stayed parallel to 2nd semester hypothesis in the range of -200 and +200 million euro, these numbers come after excluding the USPP makewhole of around 149 million euro.

The company says its Q3 performance amid the COVID-19 is still better than the hypothesized outlook of April in which revenues were predicted to decline -33% and a 25% flow-through.

The company expects Q4 revenues to be down circa -27%, compared to the -15% of previous hypotheses for April. Now after seeing the results, the 2nd semester decline is now projected to remain around -28%, or 3 billion euro and is anticipated as -13.7% for the full year.

Edward Hancock

Edward Hancock holds Master’s degree in Business Administration. After completing his post-graduation, Edward jumped the journalism bandwagon as a freelance news writer. Soon after that he landed a job of reporter and has been climbing the news industry ladder ever since to reach the post of editor. As an avid day trader, Edward is a master of technical analysis and writes tirelessly on how stocks are trading. He has extensive knowledge in technical analysis & news writing. Edward delivers news reports regarding Trending news category.

Email: [email protected]

Address: 3908 Scenic Way, Elliottstown City, IL 62424, USA

Contact number: 217-739-2075

Leave a Reply

Your email address will not be published.