Sodexo heavily affected by crisis

The French caterer Sodexo is counting on a few serious setbacks in the second half of his broken financial year, which runs until the end of August. For example, the company expects to have to write off a non-cash assets of EUR 250 million, while it will also have to pay EUR 160 million for restructuring costs.

The company is suffering from the outbreak of the coronavirus and the measures to combat the pandemic. Events are cancelled and there are fewer people at work and they do not visit the company canteens. As a result, there is less demand for Sodexo’s catering and cleaning services.

Earlier, Sodexo had already warned that turnover would be hit by the crisis and the annual forecasts were withdrawn. For financial year 2020, a tax-related setback of EUR 100 million shall also be taken into account. This is also a non-cash write-off.

According to the company, the performance in the final quarter of the financial year was as expected. This is about turnover and underlying profits. Sodexo, which is active in 67 countries and employs 470,000 people, presents its annual results on 29 October.