# Sodexo tops Q1 sales estimates as people return to offices
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-06
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Sodexo surpasses pre-pandemic levels with strong Q1 sales
Meta Description: French caterer Sodexo surpasses pre-pandemic levels with 11.9% organic growth in On-site business, driven by return to workplace and price hikes. Learn more.
URL: https://financedigest.com/sodexo-tops-q1-sales-estimates-as-people-return-to-officeshtml

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(Reuters) -French caterer Sodexo on Friday beat market estimates for first-quarter sales, as a return to the workplace and other venues helped its On-site business surpass pre-pandemic levels, while price hikes also helped.

Group sales came in at 6.33 billion euros ($6.65 billion) to top analysts’ consensus estimate of 6.17 billion euros, provided by the company, while its On-site business surpassed 2019 levels and grew 11.9% organically.

“On-Site Services continued to benefit from … a higher level of attendance, in all geographies, in the workplace, in stadiums, in convention centers and in Universities,” Chief Executive Sophie Bellon said, adding that [price hikes](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") also helped the division.

Caterers are trying to renegotiate tariffs and supplier agreements as the [sector faces rising](https://www.financedigest.com/guess-what-public-sector-adoption-of-e-invoicing-on-the-rise.html "GUESS WHAT? PUBLIC SECTOR ADOPTION OF E-INVOICING ON THE RISE!") costs. Sodexo previously said it had passed much of the [higher costs](https://www.financedigest.com/britains-ms-warns-of-gathering-storm-of-higher-costs-and-weak-consumer.html "Britain’s M&S warns of ‘gathering storm’ of higher costs and weak consumer") to clients, but has had difficulties with some, particularly in the public sector and schools.

Its Benefits & Rewards division, which delivers vouchers to [businesses for employees](https://www.financedigest.com/why-investing-in-employee-health-can-be-good-for-business.html "Why investing in employee health can be good for business"), grew as much as 23.4% in the quarter.

Sodexo had said in November it would look to expand its vouchers [business as companies seek more ways](https://www.financedigest.com/4-ways-moving-office-can-bring-your-business-roi.html "4 ways moving office can bring your business ROI") to retain staff in tight labour markets and greater flexibility as more employees work remotely.

The caterer on [Friday confirmed its guidance for the year](https://www.financedigest.com/extraordinary-rollercoaster-good-friday-talks-remembered-25-years-on.html "‘Extraordinary rollercoaster’, Good Friday talks remembered 25 years on") 2023.

($1 = 0.9515 euros)

(Reporting by Olivier Sorgho; Editing by Tom Hogue and Vinay Dwivedi)


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