(Reuters) -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 euros ($6.88 billion), up 3.1% from a year earlier. A consensus provided by the company had expected sales of 6.28 billion euros.
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.
J.P.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.
Sodexo confirmed its outlook for 2024 and 2025.
($1 = 0.9147 euros)
(Reporting by Olivier Sorgho; Editing by Sherry Jacob-Phillips and Susan Fenton)
