Sodexo remains 'optimistic for the future' amid strong H1 results

Sodexo reported "very positive" first half fiscal 2024 results, with organic revenue growth in Europe up by 8%.

It comes after the French contract caterer posted strong first quarter growth in Europe boosted by new business wins in the UK defence sector.

For the half year ended 29 February 2024, European growth stemmed from price increases and higher attendance in Sodexo's corporate services arm.

The Rugby World Cup increased volumes in UK-based airport lounges and new UK government business wins also contributed to the uptick in revenue.

Meanwhile, organic growth in the healthcare and seniors sector within Europe stood at 7.8%, supported by inflation reducing in the UK and a new 10-year contract with Royal Stoke Hospital in Stoke-on-Trent.

Group performance overall was strengthened by a 12.3% rise in underlying operating profit, which took figures to £524m, while net new developments signed in the last 12 months rose to 2.4%, up from 2.2%.

Client retention over the past 12 months remained at 95.5%, a "record" for Sodexo.

Sean Hayley, chief executive, Sodexo UK and Ireland, said: "We are ambitious and optimistic for the future. We look forward to further accelerating our growth as a partner chosen not just for our service excellence and continued innovation, but importantly as a responsible, purpose-led provider that is taking bold and tangible actions to improve the lives of colleagues, clients and consumers in the communities where we work and serve."