The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst
: Can I just start with a quick sort of boxing exercise on BRS? And then if that's okay, I have another one. So just on BRS, I think you said explicitly now
you're not considering a majority IPO of over 50% of the business. Can I just mention a couple of other possibilities, and you just let me know if
they are on the table at all. And so for example, you could do a minority IPO of smaller than 50% of the business. I'm not going to...
Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst
: Okay. And so the spectrum is...
Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst
: No comment? Okay, no comment. Well...
Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst
: Things like introducing a separate executive Board for just BRS, a Board of Directors that are specialists in that business, for example, more
organizational stuff?
Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst
: Okay. Well, okay, that was my go ahead. On the more fundamental questions. On business development, if we look at it in absolute terms, 6%, if
I'm correct, means that you signed EUR 1.1 billion of gross new contracts in the full year. And in 2019, it was EUR 1.3 billion. And in comparison with
Compass Group, just in their fiscal H1, in 6 months, they had signed GBP 1.1 billion. I'm not saying it will be double for the full year, but that was
ahead just in 6 months.
So would you still say that there is currently an industry tailwind that is happening from increased outsourcing that you are benefiting from? And
if so, what early signs do we have to build confidence that eventually you will be winning your fair share of what's out there?
And then separate question. Your full year '22 guidance, 15% to 18%. As you said, it implies you get back to 95% of pre-COVID revenue for the year
on average. Now you have businesses like Schools and Healthcare that are already pretty much at 100%. And then net new business between
retention and new business looks like it's, let's say, flat, slightly negative right now. So are you saying that just Business & Administration and
Universities alone will add EUR 3 billion of like-for-like revenue in 1 year? Or is there something you expect to change? And for example, by the
end of the year, retention will be points better and new business will already have started contributing to get you to your target?
Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst
: And specifically, so if I end up assuming Schools and Healthcare stay at 100%, net new business is not meaningful for the full year, but then you
get such a significant rebound in like-for-like in Business & Administration and Sports & Leisure that can be the single thing that takes you to the
guidance. Okay.
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OCTOBER 27, 2021 / 7:00AM, EXHO.PA - Full Year 2021 Sodexo SA Earnings Call
Question: Karl Green - RBC Capital Markets, Research Division - Analyst
: You've already helpfully discussed the manageability of labor inflation. Could you perhaps talk a little bit more about the other cost buckets,
specifically the regional trends you're seeing in food inflation, consumables, cleaning chemicals, packaging, et cetera, and what you're budgeting
for, for fiscal '22?
And then sort of secondarily and partly related to that, just in terms of kitchen equipment and the bottlenecks which are appearing, particularly
in the commercial oven supply chain. Do you think there's any risk there that, that affects your ability to mobilize new contracts and fit-out at all?
Question: Karl Green - RBC Capital Markets, Research Division - Analyst
: Understood. And just back on that. So I mean do you think that the current situation would lead to perhaps deferring the reconversion of some of
the P&L contracts back from cost plus? Do you think until the situation settles down, it might make that...
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