Sodexo: FY 2019-20 adjusted net income plummets 60%

(CercleFinance.com) - Sodexo has reported FY 2019-20 adjusted net income that is down 60.
1% to 306 million euros, or 2.10 euros per share, with an operating margin that is down 2.6 points to 2.9% (-2.4 points at constant exchange rates).

At 19.32 billion eurs, the services group's annual revenue contracted by 12% (-11.2% at constant exchange rates), with a 3.2% increase in H1, followed by a sharper 27.5% decline in H2.

Due to the need to protect its balance sheet, and out of solidarity with employees, the Board of Directors has decided not to propose a dividend for FY 2019-20, even though its adjusted net profit is positive.

At this stage, Sodexo forecasts a decline in revenues of around -20%-25% in H1 2020-21, compared to H2 2019-20, and estimates that its operating margin will be positive again, in a range of 2% to 2.5%.


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