Caterer Sodexo sees rebound in 2023 to pre-pandemic levels

Oct 26 (Reuters) – Sodexo (EXHO.PA) on Wednesday said it expected 2023 revenue and profit margins to hit 2019 levels, as the French catering and food services group rebounds from the pandemic and increases prices to cope with rising food and energy bills .

The outlook reflects the relatively swift recovery by the catering industry this year as major sports events have restarted, shops have reopened and more people returned to offices after coronavirus restrictions eased.

The company also reported better-than-expected full-year revenue, driven by all-time-high client retention rate and strong new business growth, despite the inflationary backdrop.

The Paris-based firm posted annual revenue of 21.13 billion euros ($21.06 billion), compared with 20.73 billion euros forecast by analysts polled by the company.

Sodexo, which serves businesses, armed forces, hospitals, schools and events, said revenue of its main On-site Services unit reached 99% of its 2019 levels the fourth quarter.

Pointing to the unit’s return to pre-pandemic levels, the group now expects revenues and margins for 2023 to return to 2019 levels.

For 2023, Sodexo forecasts organic revenue growth of between 8% and 10%, driven by further progress in new business and inflation, and underlying operating profit margin around 30%.

Its benefits and rewards services unit is expected to report underlying operating profit margin of around 30% at constant rates next year, the company said, giving a forecast for the division for the first time.

The voucher business has benefited this year from companies improving employee benefits through vouchers for food

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Businesses call for nature impact disclosures to be mandatory by 2030 | Biodiversity

More than 300 businesses, including H&M, Sainsbury’s and Nestlé, have urged world leaders to make it mandatory for companies to assess and reveal their impact on nature by 2030.

Businesses and financial institutions in 56 countries – including the UK, Canada and China – are pushing for governments to agree to the disclosures at Cop15, the UN biodiversity conference being held in Montreal this December.

In an open letter to heads of state, business leaders said the business and financial status quo was “economically shortsighted and will destroy value over the long term”.

If agreed, the pledge would apply to all large companies across the 196 countries signed up to the Convention on Biological Diversity, the global agreement on protecting nature. It follows increases in the number of companies making pledges to reduce emissions, with climate disclosures now mandatory in the UK, France and New Zealand, and pressure mounting for other countries to take action.

The firms, which have combined revenues of more than $1.5tn (£1.3tn) and also include BNP Paribas, Aviva Investors, Salesforce, Tata Steel and Unilever, have agreed to assess their impacts on nature, disclose that information and publicly commit to reducing their negative effects. If parties don’t agree to make these disclosures mandatory, they will be voluntary.

Various tools are being developed to measure companies’ impacts on nature but the methodologies must be standardized and supported by science, the group says.

The open letter was released alongside a report published by Business for Nature, the Capitals Coalition,

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Medtronic to spin off 2 businesses as part of restructuring process

Oct 24 (Reuters) – Medtronic Plc (MDT.N) said on Monday it would spin off two of its smaller businesses into a new company to streamline its portfolio and increase the pace of revenue growth.

Though the two businesses – patient monitoring and respiratory interventions – are relatively small, the company’s management said the spin off was part of Medtronic’s continued restructuring.

“The process continues. This is a next step. This isn’t necessarily the last step,” Chairman and Chief Executive Officer Geoffrey Martha said in a conference call.

Medtronic, the world’s largest standalone medical device maker, has been restructuring its business over the last few years. In 2018, the company announced a restructuring plan expected to help them save $500 million to $700 million annually over five years.

The two businesses contributed $2.2 billion, or around 7%, to Medtronic’s revenue in the fiscal year ended April 29. They have more than 8,000 employees globally.

“One of the pushbacks on Medtronic has been that the organization is too big and complex,” wrote Evercore ISI analyst Vijay Kumar in a note, adding the spin off would help narrow Medtronic’s focus.

The separation, expected to be completed in the next 12 to 18 months, will also help the company unlock value from the two divested businesses.

The patient monitoring technology portfolio includes Nellcor pulse oximetry and BIS brain monitoring, while the respiratory interventions business comprises ventilators and breathing systems.

US companies such as Johnson & Johnson (JNJ.N), General Electric (GE.N) and 3M Co (MMM.N)

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