Sodexo announces solid H1 Fiscal 2024 results
Issy-les-Moulineaux, April 19, 2024
Sodexo (Euronext Paris FR 0000121220-OTC: SDXAY)
*Sodexo announces solid H1 Fiscal 2024 results*
· *Organic Revenue growth +8.5%*
· *Underlying operating profit +16.9% at constant currencies, margin up +40 bps*
· *Fiscal 2024 guidance:*
· *Organic growth now expected at the top of the +6% to +8% range*
· *Underlying operating profit margin improvement confirmed at +30 to +40 bps, at constant currencies*
At the Board of Directors meeting held on April 18, 2024, chaired by Sophie Bellon, the Board closed the Consolidated accounts for the First half Fiscal 2024 ended February 29, 2024.
*First half Fiscal 2024 key figures *
(in million euros) *H1 FISCAL 2024* *H1 FISCAL 2023 RESTATED* *DIFFERENCE* *DIFFERENCE CONSTANT RATES*
Revenues 12,101 11,581 +4.5% +7.8%
Organic revenue growth +8.5% +12.9%
*UNDERLYING OPERATING PROFIT* *612* *545* *+12.3%* *+16.9%*
*UNDERLYING OPERATING PROFIT MARGIN* *5.1%* *4.7%* *+40bps* *+40bps*
Other operating income & expenses 30 (36)
*OPERATING PROFIT* *642* *509* *+26.1%* *+30.1%*
Net financial expense (46) (43)
Tax charge (99) (122)
Effective tax rate 16.6% 26.2%
*NET PROFIT FROM CONTINUING OPERATIONS * *496* *339* *+46.3%* *+50.5%*
Basic EPS from continuing operations (in euros) 3.39 2.32
*UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS * *427* *370* *+15.4%* *+21.0%*
Basic underlying EPS from continuing operations (in euros) 2.91 2.53
For more detail on the Group Net Profit including discontinued operations, please refer to section 1.2.6 of the Financial Report.
*Sodexo Chairwoman and CEO, Sophie Bellon, said:*
“The spin-off of Pluxee has been successfully completed. Sodexo is now a pure-player in Food and Facilities Management services!
We are making progress in transforming our Food services, developing our branded offers, boosting our convenience activity and enhancing our purchasing, particularly in North America. Our organization has been considerably simplified and streamlined: we are gaining in agility.
The first half performance is solid. Organic growth is robust and the margin is up +40bps. Net new business momentum is also solid with a further improvement in retention.
We are progressing towards our ambition to be the world leader in sustainable food and valued experiences. I would like to thank all our teams, who have worked so hard to execute the spin-off of Pluxee while delivering a solid operational performance!”
*Solid set of First half Fiscal 2024 Results *
· First half Fiscal 2024 consolidated revenues were at 12.1 billion euros, up +4.5% year-on-year. Acquisitions and disposals impacted growth by -0.7%, linked to the sale of the Homecare activities in October only very partially offset by some bolt-on acquisitions, particularly in North America convenience. The negative currency impact amounted to -3.3%. As a result, organic revenue growth was +8.5%.
· This organic growth was fueled by pricing for about half and net new business and some volume growth for the other half.
· By geography: · North America achieved organic growth of +10.0%;
· Europe was up +8.0%, boosted 80bps by the Rugby World Cup, in the first quarter;
· Rest of the World was up +5.7%, impacted by an accounting change for project works in a large contract. Excluding this, organic growth of the zone was +8.4%.
· Food services organic growth, at +10.7%, continued to outperform FM services, at +4.5%.
· *Underlying operating profit* was 612 million euros, up +12.3%, or +16.9% at constant currencies. The Underlying operating margin was up +40 bps at 5.1%.
· *Other operating income & expenses *amounted to a positive 30 million euros, with the gain on the sale of the Homecare services more than offsetting restructuring, spin-off costs and amortization of acquisition-related assets.
· *Operating profit *was up +26.1%, or +30.1% at constant currencies, at 642 million euros compared to 509 million euros in the previous year.
· *Net financial expense* was 46 million euros against 43 million euros in the previous year.
· *The Effective tax rate* was at 16.6% against 26.2% in the previous year mainly due to the non-taxable capital gain on the Homecare disposal, as well as the utilization of previously unrecognized tax assets due to better results in France.
· *Group net profit* *from continuing activities* was up +46.3% to 496 million euros. Underlying net profit adjusted for Other Operating income and expenses net of tax amounted to 427 million euros, up +15.4%.
· *Free cash flow* in the first half was a seasonal negative -102 million euros, an improvement relative to the -236 million euros in First half Fiscal 2023. Net capital expenditure^(^1^) was stable at 246 million euros, representing 2% of revenues.
· *Net debt *increased to 3.4 billion euros up from 2.9 billion euros at the end of Fiscal 2023^(^2^) due to the seasonality of cash movements. Given the year-on-year increase in EBITDA, the Net debt to EBITDA ratio^(1) is 2.3x, up only 0.1x since year end, and well below the level at the end of First half Fiscal 2023 of 3.2x.
*Commercial momentum*
· During First half Fiscal 2024, *last-12-months (LTM) net new development signed *increased to 2.4%, up from 2.2% at year end Fiscal 2023 due to:
· LTM client retention of 95.5%, another record for Sodexo;
· LTM development of 6.8%, slightly short of the 7-8% expected range for the year due to phasing.
*Leading the way in sustainability *
Sodexo has been strengthening its approach by:
· Accelerating the global deployment of its Zero Harm Mindset Program with already more than 6,000 employees trained (representing 38,000 hours of training).
· Progressing on client adoption of its low carbon meals strategy:
· In the United States, Sodexo has massively expanded its DefaultVeg offer at college dining halls, encouraging students to choose one of the two plant-based meal options.
· NYC Health + Hospitals and Sodexo celebrated over 1.2 million plant-based meals served since March 2022, beneficial for patient health and the environment.
· Following the successful pilots in Continental Europe, Sodexo is accelerating the deployment of its Sustainable Culinary Masterclass, inspiring its chefs and teams to innovate and introduce more sustainable ingredients.
Once again Sodexo’s continued progress has been recognized externally as it is the only Food services company included in:
· the *“2024 World’s Most Ethical Companies**^®**” by Ethisphere*, a global leader in defining and advancing the standards of ethical business practices, acknowledging companies demonstrating business integrity through best-in-class policies and practices;
· the prestigious *A-list of the CDP climate ranking*, which confirms the progress achieved by Sodexo on its climate ambition, both in performance and transparency.
*Pluxee spin-off completed successfully*
The Pluxee spin-off took place on February 1, 2024 in line with the plans laid out a year ago.
Sodexo has become a pure-player in Food and FM services. The operating performance has remained on track throughout the process.
*Outlook*
Given the solid commercial momentum, some ongoing volume growth, the contribution of the Paris Olympics and Paralympics Games in the fourth quarter, and pricing expected at close to +4% for the full year, Fiscal 2024 guidance is:
· *Organic revenue growth now expected at the top of the +6% to +8% range.*
· *Underlying operating profit margin improvement confirmed at +30 to +40 bps, at constant currencies.*
*Conference call*
*Sodexo will hold a conference call (in English) today at 9:45 a.m. (Paris time), 8:45 a.m. (London time) to comment on its First half Fiscal 2024 results.*
Those who wish to connect:
· From the UK: +44 121 281 8004, or
· From France: +33 1 70 91 87 04, or
· From the US: +1 718 705 8796,
Followed by the access code *07 26 13*.
The live audio webcast will be available on www.sodexo.com
The press release, presentation and webcast will be available on the Group website www.sodexo.com in both the “Newsroom” section and the “Investors – Financial Results” section.
*Financial calendar*
Fiscal 2024 Third quarter Revenues July 2, 2024
Fiscal 2024 Annual Results October 24, 2024
Fiscal 2024 Annual Shareholders Meeting December 17, 2024
These dates are indicative and may be subject to change without notice.
Regular updates are available in the calendar on our website www.sodexo.com
*About Sodexo*
Founded in Marseille in 1966 by Pierre Bellon, Sodexo is the global leader in sustainable food and valued experiences at every moment in life: learn, work, heal and play. The Group stands out for its independence, its founding family shareholding and its responsible business model. Thanks to its two activities of Food and Facilities Management Services, Sodexo meets all the challenges of everyday life with a dual goal: to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental progress in the communities where we operate. For Sodexo, growth and social commitment go hand in hand. Our purpose is to create a better everyday for everyone to build a better life for all.
Sodexo is included in the CAC Next 20, Bloomberg France 40, CAC 40 ESG, CAC SBT 1.5, FTSE 4 Good and DJSI indices.
*Key figures*
· 22.6 billion euros Fiscal 2023 consolidated revenues
· 430,000 employees as at August 31, 2023
· #1 France-based private employer worldwide
· 45 countries
· 80 million consumers served daily
· 11.4 billion euros in market capitalization
(as at April 18, 2024)
*Contacts* *Analysts and Investors * *Media* Virginia Jeanson
+33 1 57 75 80 56
virginia.jeanson@sodexo.com Mathieu Scaravetti
+33 6 28 62 21 91
mathieu.scaravetti@sodexo.com
*First half Fiscal 2024 **Financial Report*
*1.1 **Changes in financial disclosure from H1 Fiscal 2024*
Following the Pluxee spin-off, Sodexo is now a pure player in Food and FM services. In order to better reflect the Group's performance, to provide more clarity and to ease the comparability with its main peers, the Group has decided to make the following changes to its financial disclosure:
1. First half Retention and Development KPIs are now presented on a last 12 months (LTM) basis, previously provided on a six months basis.
2. In the breakdown of revenues by segment within each geography, the Sports & Leisure segment, operated under the Sodexo Live! brand, previously grouped within the Business & Administrations segment, is now presented separately.
3. Definitions of Operating cash flow, Net Capex and EBITDA have been adjusted:
· Client Investment amortization, which is accounted for, in the P&L, as a reduction to Revenue (as per IFRS15), previously neutralized in Free Cash Flow within Net Capex, is now is neutralized within Operating cash flow and EBITDA;
· New definition of Net Capex includes (i) acquisition of PPE and intangible assets, (ii) new Client Investments and (iii) Disposal of assets, as before, but no longer includes the neutralization of client investment amortization;
· EBITDA is now defined as Underlying operating profit excluding both underlying Depreciation & amortization and Client investment amortization, and including Lease payments.
*FIRST HALF FISCAL 2024*
(in million euros) *PREVIOUS DEFINITIONS* *Client Investments amortization* *NEW DEFINITIONS*
Operating Cash Flow 664 75 739
Net Capex (171) (75) (246)
EBITDA - 6M 735 75 810
EBITDA - 12M Rolling 1,278 150 1,428
Net debt 3,352 3,352
Net debt / EBITDA (12M Rolling) 2.6x 2.3x
*1.2 **H1 Fiscal 2024 performance*
*1.2.1** Consolidated income statement from continuing operations*
(in million euros) *H1 FISCAL 2024* *H1 FISCAL 2023 RESTATED* *DIFFERENCE* *DIFFERENCE CONSTANT RATES*
Revenue 12,101 11,581 +4.5% +7.8%
Organic Growth +8.5% +12.9%
*UNDERLYING OPERATING PROFIT* *612* *545* *+12.3%* *+16.9%*
*UNDERLYING OPERATING PROFIT MARGIN* *5.1%* *4.7%* *+40 bps* *+40 bps*
Other operating income & expenses 30 (36)
*OPERATING PROFIT* *642* *509* *+26.1%* *+30.1%*
Net financial expense (46) (43)
Tax charge (99) (122)
Effective tax rate^(1) 16.6% 26.2%
*NET PROFIT FROM CONTINUING OPERATIONS**^(2)* *496* *339* *+46.3%* *+50.5%*
Basic EPS from continuing operations (in euros) 3.39 2.32
*UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS* *427* *370* *+15.4%* *+21.0%*
Basic underlying EPS from continuing operations (in euros) 2.91 2.53
(1) Pre-tax profit excluding share of profit from Equity method was 595 million euros in First half Fiscal 2024 and 465 millions euros in First half Fiscal 2023.
(2) Profit attributable to non-controlling interests were 4 million euros in First half Fiscal 2024 and 5 million euros in First half Fiscal 2023.
*1.2.2** Revenues*
*REVENUES BY ZONES*
*REVENUES*
(in million euros) *H1 FY 2024* *H1 FY 2023* *ORGANIC GROWTH* *EXTERNAL GROWTH* *CURRENCY EFFECT* *TOTAL GROWTH*
North America 5,756 5,499 +10.0 % -0.1 % -5.2 % +4.7 %
Europe 4,254 4,027 +8.0 % -1.7 % -0.7 % +5.6 %
Rest of the World 2,091 2,055 +5.7 % -0.7 % -3.3 % +1.7 %
*SODEXO* *12,101* *11,581* *+8.5 **%* *-0.7 **%* *-3.3* *%* *+4.5 **%*
First half Fiscal 2024 Sodexo revenues totaled 12.1 billion euros, up +4.5% year-on-year including a negative currency impact of -3.3%, resulting from the appreciation of the euro against most currencies from the start of calendar year 2023, and a net contribution from acquisitions and disposals of -0.7%. Consequently, First half Fiscal 2024 organic growth was +8.5%.
The underlying dynamic in the second quarter was similar to the first quarter, with strong activity in all segments and geographies, particularly in North America, where organic growth reached +10.0%. Europe was up +8.0%, boosted 80bps by the Rugby World Cup in the first quarter. Rest of the World was up +5.7%, impacted by an accounting change for project works in a large contract. Excluding this, organic growth of the zone was +8.4%.
The most significant drivers of organic growth continue to be increased attendance, new business and pricing.
Price adjustments averaged close to +4.5% for the First half, progressively declining, in line with the softening of food inflation.
Organic growth in the First half was driven by Food services, up +10.7% organically, whereas FM services were up +4.5%.
Net new development has shown a steady improvement, reaching 2.4% on a last 12 months basis (LTM) as of the end of February:
· LTM client retention reached a new record of 95.5%;
· LTM development of 6.8%, slightly short of the 7-8% expected range for the year due to phasing.
*North America*
*REVENUES*
*REVENUES BY SEGMENT*
(in million euros) *H1 FY 2024* *H1 FY 2023 * *RESTATED ORGANIC GROWTH**^(2)*
Business & Administrations^(1) 1,470 1,884 +13.2 %
Sodexo Live! 676 — +23.3 %
Healthcare & Seniors 1,687 1,722 +6.3 %
Education 1,923 1,893 +7.0 %
*NORTH AMERICA TOTAL* *5,756* *5,499* *+10.0* *%*
(1) From H1 FY24, Business & Administrations excludes Sodexo Live!, reported separately.
(2) As part of the streamlining of the organization during Fiscal 2023, some contracts or operations have been reallocated between segments.
First half Fiscal 2024 *North America* revenues totaled *5.8 billion euros*, up +10.0% organically. This strong growth was driven by the contribution of new business and some volume growth as well as a pricing impact of just below +4%.
Restated organic growth in *Business & Administrations (excl. Sodexo Live!) *reached +13.2%, driven by the contribution of new business, strong growth in food services from continued return to office and cross-sales, as well as project works and strong retail sales growth. Entegra revenue growth was also accretive.
*Sodexo Live! *restated organic growth was +23.3%, driven by robust activity in all venues, and in particular strong per capita spend in sports stadiums. Airport lounges activity also grew strongly with increased passenger count, added scope and mobilization of new business.
*Healthcare & Seniors* restated organic growth was +6.3%, with good performance in Healthcare through a combination of price increases, volume, retail growth and favorable net new contribution. This growth was somewhat offset by a negative contribution in Seniors due to the impact of sites lost at the end of the prior fiscal year.
*Education* restated organic revenue growth was +7.0%, benefiting from price increases as well as growth in meal count, retail and catering events.
*Europe*
*REVENUES BY SEGMENT*
(in million euros) *H1 FY 2024* *H1 FY 2023* *RESTATED ORGANIC GROWTH**^(**^*2)**
Business & Administrations^(1) 2,356 2,632 +6.3 %
Sodexo Live! 324 — +25.4 %
Healthcare & Seniors 950 1,009 +7.8 %
Education 624 386 +7.3 %
*EUROPE TOTAL* *4,254* *4,027* *+8.0* *%*
(1) From H1 FY24, Business & Administrations excludes Sodexo Live!, reported separately.
(2) As part of the streamlining of the organization during Fiscal 2023, some contracts or operations have been reallocated between segments.
In *Europe*, First half Fiscal 2024 revenues amounted to *4.3 billion euros*, up +8.0% organically, or +7.2% excluding the Rugby World Cup, driven by increased food services volume and pricing of around +5%.
*Business & Administrations (excl. Sodexo Live!)* restated organic growth was +6.3%. This was supported by Corporate services benefiting from both price increases and higher attendance, coupled with new business in Government in the United Kingdom.
*Sodexo Live!* restated organic growth stood at +25.4%, or +12.5% excluding the Rugby World Cup. The growth was primarily driven by improved attendance and pricing in sports and cultural destinations in France, in particular the restaurants in the Eiffel Tower, by increased volumes in the United Kingdom in airport lounges, as activity was only just starting to pick-up in early Fiscal 2023 post-pandemic, and stadiums, helped by price increases.
*Healthcare & Seniors* restated organic growth stood at +7.8%, driven by new business particularly in Spain and inflation pass-through in the United Kingdom, as well as favorable volumes and price revisions in Seniors in France.
*Education* restated organic revenue growth was +7.3%, reflecting the significant positive impact of price revisions, and a favorable working days impact.
*Rest of the World*
*REVENUES BY SEGMENT*
(in million euros) *H1 FY 2024* *H1 FY 2023* *RESTATED ORGANIC GROWTH**^(2)*
Business & Administrations^(1) 1,820 1,839 +5.1 %
Sodexo Live! 22 — +195.6 %
Healthcare & Seniors 170 168 +1.4 %
Education 79 48 +10.5 %
*REST OF THE WORLD TOTAL* *2,091* *2,055* *+5.7* *%*
(1) From H1 FY24, Business & Administrations excludes Sodexo Live!, reported separately.
(2) As part of the streamlining of the organization during Fiscal 2023, some contracts or operations have been reallocated between segments.
*Rest of the World* First half Fiscal 2024 revenues amounted to *2.1 billion euros*, up +5.7% organically, impacted by the change in revenue recognition in Energy & Resources. Excluding this impact, the organic growth was +8.4%, including pricing of around +4.5%.
*Business & Administrations (excl. Sodexo Live!)* restated organic growth was +5.1%, or +8.3% excluding the accounting change. Growth in food in India has continued to be very strong, driven by both new and existing business, and in Australia with a pricing catch-up and new openings in mining. Brazil and Latin America are still growing high single digit, although with a slight deceleration in the second quarter due to a lower pricing impact and a slowing market. This performance was slightly offset by a modest growth in China due to the economic slowdown leading to restructuring and site closures last year.
*Sodexo Live! *revenues (principally airport lounges) tripled as Covid restrictions in airlines were lifted only from January 2023 and due to the opening of new lounges in Hong Kong.
*Healthcare & Seniors* restated organic growth was +1.4%, with regular strong growth in India, a significant pick-up in growth in Latin America, offset by slow growth in China and the impact of the exit of low-performing contracts in Brazil during the second quarter last year.
*Education* restated organic growth was +10.5%, fueled by strong growth in China coming from a lower starting point last year due to school closures, and sustained growth in Brazil and India, boosted by both new business and ramp ups in existing sites.
*1.2.3** Underlying operating profit*
(in million euros) *UNDERLYING OPERATING PROFIT H1 FISCAL 2024* *DIFFERENCE* *DIFFERENCE (EXCLUDING CURRENCY EFFECT)* *UNDERLYING OPERATING PROFIT MARGIN H1 FISCAL 2024* *DIFFERENCE IN MARGIN* *DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT)*
North America 395 +8.2% +14.1% 6.9% +30 bps +30 bps
Europe 180 +14.6% +16.0% 4.2% +30 bps +30 bps
Rest of the World 80 +12.7% +14.1% 3.8% +30 bps +30 bps
*UNDERLYING OPERATING PROFIT BEFORE CORPORATE **COSTS* *655* *+10.5%* *+14.6%* *5.4%* *+30 bps* *+30 bps*
Corporate expenses (43) -10.4% -10.4%
*UNDERLYING OPERATING PROFIT (continuing activities)* *612* *+12.3%* *+16.9%* *5.1%* *+40 bps* *+40 bps*
First half Fiscal 2024 Underlying operating profit was 612 million euros, up +12.3%, and +16.9% excluding the currency effect. The Underlying operating margin, including Corporate expenses, was up +40 bps at 5.1%.
This significant improvement stemmed partially from effective management of inflation through better pricing and continued close management of procurement, in a decelerating food cost inflation environment.
The margin improvement was also due to enhanced on site productivity notably attributed to the deployment of branded offers, supply efficiencies, standardization and optimized staff allocation, as well as healthy net new wins coming from higher retention rate and quality signatures.
Finally, disciplined above-site cost management contributed to the year-on-year margin increase.
*The performance by zone is as follows:*
· *North America* Underlying operating profit increased +8.2%, or +14.1% excluding the currency effect, and the margin was up +30 bps at 6.9%, fueled by operating leverage from higher revenue, focus on labor efficiency and Entegra volume growth. Margin was also helped by a more favorable operating environment characterized by much lower food inflation.
· *Europe* Underlying operating profit was up +14.6%, or +16.0% excluding the currency effect, and the margin was up +30bps at 4.2%. This was due to inflation mitigation measures and SKU reduction combined with the softening of cost inflation and price revisions, particularly in the public sector in France, Belgium and Italy.
· *Rest of the World* Underlying operating profit was up +12.7% or +14.1% excluding the currency effect, and the margin was up +30 bps at 3.8%, with improvements in all geographies driven by higher revenues and cost control, as well as successful price negotiations especially in Australia, and turnaround and/or exit of underperforming contracts in Brazil and in the Middle-East.
*1.2.4** Net profit from continuing operations*
(in million euros) *H1 FISCAL 2024* *H1 FISCAL 2023 RESTATED*
*UNDERLYING OPERATING PROFIT* *612* *545*
Net impact related to consolidation scope changes 83 1
Restructuring and rationalization costs (15) (8)
Amortization of purchased intangible assets (17) (18)
Other (21) (11)
*OTHER OPERATING INCOME AND EXPENSES * *30* *(36)*
*OPERATING PROFIT* *642* *509*
Net financial expense (46) (43)
*Net income before tax & shares accounted for equity method* *595* *465*
Tax charge (99) (122)
*NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE)* *496* *339*
*UNDERLYING NET PROFIT FROM CONTINUING OPERATIONS (GROUP SHARE)* *427* *370*
*Other operating income and expenses* amounted to 30 million euros compared to -36 million euros in the previous year. The main elements of the period were the 83 million euros net gain related to scope changes, principally the disposal of the Homecare business in October 2023, the spin-off costs of Pluxee for 16 million euros and restructuring costs of 15 million euros.
As a result, the *Operating Profit* was 642 million euros compared to 509 million euros in the previous year.
*Net Financial expenses* in First half Fiscal 2024 were up 3 million euros at 46 million euros. Gross interest on the bonds was more or less neutral as higher dollar floating rates offset the effect of the reimbursement of two bonds in November 2023 and January 2024 which were both at very low interest rates.
The First half Fiscal 2024 *effective tax rate* was at 16.6%, well below the 26.2% in the previous year. This decrease is principally explained by the capital gain on the sale of the Homecare activity which had no tax impact, as well as the utilization of previously unrecognized tax assets due to better results in France.
First half Fiscal 2024 *Net profit from continuing activities* was up +46.3% to 496 million euros, compared to 339 million euros in the previous year. *Underlying net profit from continuing activities* adjusted for Other Operating income and expenses net of tax amounted to 427 million euros, compared to 370 million euros in the previous year, up +15.4%.
*1.2.5** Earnings per share from continuing operations*
First half Fiscal 2024 EPS from continuing activities was 3.39 euros against 2.32 euros in the previous year. The weighted average number of shares for Fiscal 2024 was more or less stable at 146,445,700 compared to 146,147,666 shares for First half Fiscal 2023.
Underlying EPS amounted to 2.91 euros, up +15.0% compared to the previous year.
*1.2.6** Net profit from discontinued operations (Pluxee)*
(in million euros) *H1 FISCAL 2024* *H1 FISCAL 2023 RESTATED*
Group Net Profit from continuing operations 496 339
Group Net Profit from discontinued operations (570) 101
*GROUP NET PROFIT (Group share)* *(74)* *440*
First half Fiscal 2024 Net profit from discontinued operations amounts to -570 million euros, against +101 million euros in the previous year (restated). This result is composed of:
1. Pluxee's contribution to the Group's Net income under IFRS 5 for 97 million euros, reflecting Pluxee's performance over the five-month period leading up to the spin-off, spanning from September 1, 2023 to January 31, 2024, adjusted for IFRS 5 impacts (in particular, the neutralization of depreciation).
2. A provision related to the anti-trust fine (fully paid before the end of Fiscal 2023) following the decision of the Paris Court of Appeal in November 2023, of -127 million euros.
3. The impact of the recycling of the currency translation adjustment reserves linked to Pluxee for -540 million euros as of January 31, 2024. Sodexo has elected to account for the demerger using Pluxee’s Net Book Value. Therefore, the deconsolidation does not generate any loss or gain in the consolidated income statement as of February 29, 2024, except for the negative impact of the recycling of the currency translation adjustment reserves, mainly from the Brazilian Real and Venezuelan Bolivar. This non-cash loss was purely technical, with no impact on Sodexo’s equity, cashflow or dividend distribution capacity.
None of these items will impact the Fiscal 2024 dividend as the pay-out ratio will be based on the Underlying net profit of Sodexo continuing activities only.
*1.3** Consolidated financial position*
As a consequence of the spin-off, Pluxee's assets and liabilities, including the cash, have been deconsolidated as of January 31, 2024. The cash flows generated by Pluxee between the start of the Fiscal Year until the spin-off are reported as cash flow from discontinued operations.
*1.3.1** Cash flows from continuing operations*
Cash flows from continuing operations for the period were as follows:
(in million euros) *H1 FISCAL 2024* *H1 FISCAL 2023*
Operating cash flow^(1) *739* *733*
Change in working capital (513) (624)
IFRS 16 outflow (82) (98)
Net capital expenditure (including new client investments) (246) (247)
*Free cash flow**^(2)* *(102)* *(236)*
Net acquisitions 100 (11)
Share buy-backs (26) (57)
Dividends paid to shareholders (456) (352)
Other changes (including scope and exchange rates) 50 95
*(Increase)/decrease in net debt* *(434)* *(561)*
(1) The difference with the Operating Cash Flow as presented in the consolidated cash flow statement (section 2.1.4) comes from the new client investments, presented in this table within Net Capex (within Operating Cash flow in the cash flow statement, under "change in client investments").
(2) The Group does not believe the accounting treatment introduced by IFRS 16 modifies the operating nature of its lease transactions. Accordingly, to ensure the Group’s performance measures continue to best reflect its operating performance, the Group considers repayments of lease liabilities as operating items impacting the Free cash flow, which integrates all lease payments (fixed or variable). To be consistent, the lease liabilities are not included in Net debt (treated as operating items).
First half Fiscal 2024 Free cash outflow was -102 million euros against -236 million euros in the previous period.
First half Fiscal 2024 Operating cash flow slightly improved at 739 million euros against 733 million euros in the previous period as a result of the increase in operating profit, offset by the unfavorable variation of income tax paid due to significant positive prior year one-offs.The change in working capital in the first half was a seasonal negative 513 million euros, improved from the negative 624 million euros in First half Fiscal 2023.
Net capital expenditure, including new client investments, was stable at 246 million euros, or 2% of revenues, with higher capex to sales ratio expected in the second half due to the timing of investments.
Acquisitions net of disposals amounted to an inflow of 100 million euros resulting from the disposal of the Homecare business, offset somewhat by some acquisitions mainly in the Convenience activity in North America.
The Fiscal 2023 dividend payment amounted to 456 million euros compared to 352 million euros in the previous year, reflecting the 29% increase in the dividend per share.
After taking into account Other changes, consolidated net debt increased by 434 million euros during the First half to reach 3,352 million euros at February 29, 2024.
*1.3.2** Acquisitions and disposals for the period*
First half Fiscal 2024 was marked by the spin-off and listing of Pluxee on February 1, 2024.
Other consolidated scope changes of the First half 2024 included:
· the disposal of non-core activities, mainly the Homecare business, completed in October 2023;
· some targeted acquisitions, of which three in North America in the convenience business, and one in urban food services in Sweden.
Disposals net of acquisitions amounted to 100 million euros.
*1.3.3** Condensed consolidated statement of financial position at February 29, 2024*
(in million euros) *FEBRUARY 29, 2024* *AUGUST 31, 2023 ADJUSTED **^(1)* (in million euros) *FEBRUARY 29, 2024* *AUGUST 31, 2023 ADJUSTED**^ (1)*
Non-current assets 9,470 9,406 Shareholders’ equity 4,413 4,542
Current assets excluding cash 4,672 4,044 Non-controlling interests 17 12 Non-current liabilities 6,159 6,440
Interco loans / deposits with Pluxee 1,215
Cash & cash equivalent 1,454 1,455 Current liabilities 5,007 5,481
Assets held for sale or for distribution 5,889 Liabilities held for sale or for distribution 5,534
*TOTAL ASSETS* *15,596* *22,009* *TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY* *15,596* *22,009*
(1) As of August 31, 2023, in order to project the post spin-off financial position, in this table intragoup loans and deposits between Sodexo and Pluxee were not eliminated (on the one hand 1,215 million euros loan from Sodexo to Pluxee, presented in this table in Assets, into "interco loans / deposits with Pluxee" with counterpart in "Liabilities held for sale", and on the other hand deposits from Pluxee in Sodexo cash-pooling for 570 millions euros, presented in the table in Assets as a reduction of Cash with counterpart in "Assets held for sale"). These restatements explain the gaps with the Consolidated financial position in note 4.1.3, in which intragroup loans were eliminated. Moreover, these intragroup loans were considered as settled as at August 31, 2023, and thus are part of the net debt calculation, as they have been settled just prior to the listing date of Pluxee.
The decrease in Shareholder's equity is the result of Pluxee's deconsolidation on February 1, 2024.
Assets and Liabilities held for sale or distribution were nil as of February 29, 2024, following the spin-off of Pluxee and the disposal of the Homecare entities.
(in million euros) *FEBRUARY 29, 2024* *AUGUST 31, 2023 ADJUSTED**^1* *FEBRUARY 28, 2023 ADJUSTED**^1*
Gross borrowings 4,797 5,588 5,632
Net debt 3,352 2,918 4,069
Gearing ratio 75.7% 64.1% 99.3%
Net Debt ratio (Net debt/EBITDA^2) 2.3x 2.2x 3.2x
(1) Net debt as of February 28, 2023 and August 31, 2023 were adjusted to exclude Pluxee and to reflect the post-spin-off financial position, with intragroup loans and deposits with Pluxee considered as settled.
(2) For the new definition of EBITDA, please refer to the Alternative Performance Measure in section 1.3.6
As of February 29, 2024, net debt was 3,352 million euros, up from 2,918 million euros at the end of Fiscal 2023 (adjusted), reflecting the typical seasonality of cash flow with dividend payment in the First half and seasonal working capital requirements. Given the year-on-year increase in EBITDA, the increase in net debt to EBITDA ratio since year end is limited to 0.1x, at 2.3x, and well below the levels at the end of First half Fiscal 2023 of 3.2x.
During the period, two bonds were reimbursed: 300 million euros, due May 2025, carrying an interest rate of 1.125% in November 2023, and 500 million euros due in January 2024, carrying an interest rate of 0.50%. As a result, the average interest rate on the bonds at the end of the First half Fiscal 2024 was at 1.9%, against 1.7% at the end of August 2023.
As of February 29, 2024, the Group's gross debt of 4,797 million euros was 67% euro-denominated, 24% dollar-denominated and 8% sterling-denominated, with an average maturity of 3.7 years, 94% at fixed rates and 100% covenant free.
Operating cash reached a total of 1,445 million euros.
At the end of the First half Fiscal 2024, the Group had unused credit lines totaled 1.6 billion euros.
*1.3.4** Subsequent events*
No major events have occurred since the closing of the period.
*1.3.5** Currency effect*
Exchange rate fluctuations do not generate operational risks, because each subsidiary bills its revenues and incurs its expenses in the same currency.
*1€=* *AVERAGE RATE*
*H1 FY 2024* *AVERAGE RATE*
*H1 FY 2023* *AVERAGE RATE*
*H1 FY 2024*
*VS. H1 FY 2023* *CLOSING RATE*
*AT 02/29/24* *CLOSING RATE *
* AT 08/31/23* *CLOSING RATE*
*02/29/2024*
*VS. 08/31/2023*
U.S. dollar 1.082 1.031 -4.7 % 1.083 1.087 +0.4 %
Pound Sterling 0.864 0.874 +1.2 % 0.857 0.857 +0.1 %
Brazilian real 5.364 5.417 +1.0 % 5.405 5.308 -1.8 %
The negative currency impact for First half Fiscal 2024 of -3.3% results from the appreciation of the Euro notably compared to the US Dollar, the Australian Dollar, the Chinese Renminbi, the Indian Rupee and the Chilean Peso.
Sodexo operates in 45 countries. The percentage of total revenues and underlying operating profit denominated in the main currencies during the First half Fiscal 2024 are as follows:
*H1 FISCAL 2024* *% OF REVENUES* *% OF UNDERLYING *
* OPERATING PROFIT*
U.S. dollar 45 % 67 %
Euro 23 % 4 %
UK pound Sterling 8 % 7 %
Brazilian real 4 % 4 %
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures.
*1.3.6** Alternative Performance Measure definitions*
*Blended cost of debt*
The blended cost of debt is calculated at period end and is the weighted blended financing rate on borrowings (including derivative financial instruments and commercial papers) and cash-pooling balances at period end.
*Financial ratios definition*
*FIRST HALF FISCAL 2024* *RESTATED FIRST HALF FISCAL 2023*
Gearing ratio
Borrowings (1) – operating cash (2) 75.7% 99.3%
Shareholders’ equity and non-controlling interests
Net debt ratio
Borrowings (1) – operating cash (2) 2.3 3.2
Rolling 12-month (Underlying) EBITDA (3)
*Financial ratios reconciliation*
*FIRST HALF FISCAL 2024* *RESTATED FIRST HALF FISCAL 2023*
(1) Borrowings Long-term borrowings 4,748 5,086
+ Short-term borrowings 52 548
- Derivative financial instruments recognized as assets (3) (3)
*BORROWINGS * *4,797* *5,632*
(2) Operating cash
Cash and cash equivalents 1,454 1,457
Pluxee deposits (490)
+ Internal loans/deposits with Pluxee 603
Bank overdrafts (9) (7)
*OPERATING CASH* *1,445* *1,563*
(3) Rolling 12-month (Underlying) EBITDA^(1) Underlying operating profit (RTM) 1,043 928
+ Depreciation and amortization (RTM) 431 419
+ Client investments amortization (RTM) 150 127
· Lease payments (RTM)
(197) (204)
*Rolling 12-month (UNDERLYING) EBITDA * *1,428* *1,271*
(1) For the sake of simplification, the term EBITDA is used in reference to Underlying EBITDA.
Note: Rolling 12-month (RTM) EBITDA excluding lease payments would be 1,625 million euros for First half Fiscal 2024, compared to 1,475 million euros for First half Fiscal 2023.
*Free cash flow*
Please refer to the section entitled Consolidated financial position.
*Growth excluding currency effect*
The currency effect is determined by applying the previous year’s average exchange rates to the current year figures except in hyper-inflationary economies where all figures are converted at the latest closing rate for both periods when the impact is significant.
*Net debt*
Net debt is defined as Group borrowing at the balance sheet date, less operating cash.
*Organic growth*
Organic growth corresponds to the increase in revenue for a given period (the “current period”) compared to the revenue reported for the same period of the prior fiscal year, calculated using the exchange rate for the prior fiscal year; and excluding the impact of business acquisitions (or gain of control) and divestments, as follows:
· for businesses acquired (or gain of control) during the current period, revenue generated since the acquisition date is excluded from the organic growth calculation;
· for businesses acquired (or gain of control) during the prior fiscal year, revenue generated during the current period up until the first anniversary date of the acquisition is excluded;
· for businesses divested (or loss of control) during the prior fiscal year, revenue generated in the comparative period of the prior fiscal year until the divestment date is excluded;
· for businesses divested (or loss of control) during the current fiscal year, revenue generated in the period commencing 12 months before the divestment date up to the end of the comparative period of the prior fiscal year is excluded.
*Underlying net profit*
Underlying Net profit is defined as Net profit excluding significant unusual and/or infrequent elements and corresponds to the Net Income Group share excluding Other Income and Expense after tax, as well as significant non-recurring elements in both Net Financial Expense and Income Tax Expense where relevant.
*Underlying net profit per share*
Underlying Net profit per share presents the Underlying net profit divided by the average number of shares.
*Underlying operating profit margin*
The underlying operating profit margin corresponds to Underlying operating profit divided by revenues.
*Underlying operating profit margin at constant rates*
The Underlying operating profit margin at constant rates corresponds to Underlying operating profit divided by revenues, calculated by converting 2024 figures at Fiscal 2023 rates, except for countries with hyperinflationary economies.
*New segment reporting following evolution of the organization*
As part of the streamlining of the organization, from Fiscal 2024, some contracts or operations have been reallocated between segments, with main impacts in Europe from Healthcare & Seniors to Education.
Restated revenue breakdown for Fiscal 2023:
*REVENUES*
(in million euros)
*Fiscal 2023* *Q1 2023* *Q2 2023* *Q3 2023* *Q4 2023*
*Published* *Restated* *Published* *Restated* *Published* *Restated* *Published* *Restated* *Published* *Restated*
*North America* *10,479* *10,479* *2,992* *2,992* *2,506* *2,506* *2,658* *2,658* *2,322* *2,322*
Business & Administrations 3,865 2,723 1,009 699 874 641 959 679 1,023 704
Sodexo Live!^(1) -- 1,184 -- 327 -- 248 -- 296 -- 312
Healthcare & Seniors 3,440 3,399 877 866 844 831 856 844 863 858
Education 3,173 3,173 1,106 1,100 788 786 844 839 436 448
*Europe* *8,071* *8,071* *2,047* *2,047* *1,980* *1,980* *2,042* *2,042* *2,002* *2,002*
Business & Administrations 5,337 4,464 1,337 1,125 1,296 1,110 1,324 1,115 1,380 1,114
Sodexo Live!^(1) -- 599 -- 141 -- 118 -- 138 -- 202
Healthcare & Seniors 2,026 1,950 504 470 505 481 531 498 487 500
Education 708 1,059 206 311 179 271 187 291 136 185
*Rest of the World* *4,087* *4,087* *1,057* *1,057* *998* *998* *1,055* *1,055* *978* *978*
Business & Administrations 3,659 3,546 941 914 898 871 946 916 874 845
Sodexo Live!^(1) -- 23 -- 3 -- 5 -- 6 -- 9
Healthcare & Seniors 337 376 87 95 81 92 83 93 87 96
Education 91 142 29 45 19 30 26 39 17 28
*Sodexo* *22,637* *22,637* *6,097* *6,097* *5,484* *5,484* *5,755* *5,755* *5,301* *5,301*
(1) From H1 FY24, Business & Administrations excludes Sodexo Live!, reported separately.
First half Fiscal 2024
Condensed consolidated
financial statements
*2.1** Consolidated financial statements*
The comparative period presented in the consolidated income statement and in the consolidated cash flow statement disclosed in the document has been restated to reflect the classification as discontinued operations of Pluxee (ex-Benefits & Rewards Services activity) in accordance with IFRS 5 “Assets held for sale and discontinued operations”. Restatements of previously published information are disclosed in note 3.1.
*2.1.1** Consolidated income statement*
(in million euros) *NOTES* *FIRST HALF FISCAL 2024* *FIRST HALF FISCAL 2023 IFRS 5 restated *
*Revenues* *4.1* *12,101* *11,581*
*Cost of sales* *4.2* *(10,626)* *(10,168)*
*Gross profit* *1,475* *1,413*
Selling, General and Administrative costs 4.2 (864) (869)
Share of profit of companies accounted for using the equity method that directly contribute to the Group’s business 1 1
*Underlying operating profit* *4.1* *612* *545*
Other operating income 4.2 83 1
Other operating expenses 4.2 (53) (37)
*Operating profit* *642* *509*
Financial income 8.1 50 38
Financial expenses 8.1 (96) (81)
Share of profit of other companies accounted for using the equity method 3 —
*Profit for the period before tax* *599* *466*
Income tax expense 9.1 (99) (122)
*Net profit of the period from continuing operations* *500* *344*
*Net profit of the period from discontinued operations* 3.1 *(568)* *104*
*Net profit for the period* *(68)* *448*
Of which:
Profit attributable to non-controlling interests 6 8
Net profit of the period from continuing operations – Attributable to non-controlling interests 4 5
Net profit of the period from discontinued operations – Attributable to non-controlling interests 2 3
*ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT* *(74)* *440*
*Net profit of the period from continuing operations – Attributable to equity holders of the parent* *496* *339*
*Net profit of the period from discontinued operations – Attributable to equity holders of the parent* *(570)* *101*
*Basic earnings per share *(in euro) *7.2* *(0.50)* *3.01*
Net profit of the period from continuing operations, Group share per share (in euros) 3.39 2.32
Net profit of the period from discontinued operations, Group share per share (in euros) (3.89) 0.69
*Diluted earnings per share *(in euro) *7.2* *(0.50)* *2.98*
Net profit of the period from continuing operations, Group share diluted per share (in euros) 3.35 2.30
Net profit of the period from discontinued operations, Group share diluted per share (in euros) (3.85) 0.68
*2.1.2** Consolidated statement of comprehensive income*
(in million euros) *FIRST HALF FISCAL 2024* *FIRST HALF FISCAL 2023 IFRS 5 restated *
*NET PROFIT FOR THE PERIOD* *(68)* *448*
*Components of other comprehensive income that may be reclassified subsequently to profit or loss* *502* *(384)*
Change in fair value of cash flow hedge instruments — —
Change in fair value of cash flow hedge instruments reclassified to profit or loss — —
Currency translation adjustment (31) (385)
Currency translation adjustment reclassified to profit or loss 533 —
Tax on components of other comprehensive income that may be reclassified subsequently to profit or loss — —
Share of other components of comprehensive income (loss) of companies accounted for using the equity method, net of tax — 1
*Components of other comprehensive income that will not be reclassified subsequently to profit or loss* *12* *20*
Remeasurement of defined benefit plan obligation (12) (101)
Change in fair value of financial assets revalued through other comprehensive income 22 98
Tax on components of other comprehensive income that will not be reclassified subsequently to profit or loss 2 23
*TOTAL OTHER COMPREHENSIVE INCOME (LOSS), AFTER TAX FOR THE PERIOD* *514* *(365)*
*COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS* *474* *31*
*COMPREHENSIVE INCOME FROM DISCONTINUED OPERATIONS* *(28)* *51*
*Comprehensive income for the period* *446* *82*
Of which:
Attributable to equity holders of the parent 440 75
Comprehensive income from continuing operations – Attributable to equity holders of the parent 469 25
Comprehensive income from discontinued operations – Attributable to equity holders of the parent (29) 50
Attributable to non-controlling interests 6 7
Comprehensive income from continuing operations – Attributable to non-controlling interests 4 6
Comprehensive income from discontinued operations – Attributable to non-controlling interests 2 1
*2.1.3** Consolidated statement of financial position*
*Assets*
(in million euros) *NOTES* *FEBRUARY 29, 2024* *AUGUST 31, 2023*
Goodwill 5,603 5,568
Other intangible assets 439 448
Property, plant and equipment 543 510
Right-of-use assets relating to leases 721 787
Client investments 695 687
Investments in companies accounted for using the equity method 70 66
Non-current financial assets 8.3 1,109 1,071
Other non-current assets 70 77
Deferred tax assets 220 192
*NON CURRENT ASSETS* *9,470* *9,406*
Current financial assets 8.3 79 74
Inventories 321 324
Income tax receivable 164 84
Trade and other current operating assets 4.3 4,108 3,562
Cash and cash equivalents 8.2 1,454 2,025
Assets held for sale or for distribution 3.1 — 5,319
*CURRENT ASSETS* *6,126* *11,388*
*TOTAL ASSETS* *15,596* *20,794*
*Shareholders’ equity and liabilities*
(in million euros) *NOTES* *FEBRUARY 29, 2024* *AUGUST 31, 2023*
Share capital 590 590
Additional paid-in capital 248 248
Reserves and retained earnings 3,575 3,704
*EQUITY ATTRIBUABLE TO EQUITY HOLDERS OF THE PARENT* *4,413* *4,542*
*NON-CONTROLLING INTERESTS* *17* *12*
*SHAREHOLDER’S EQUITY* *7* *4,430* *4,554*
Long-term borrowings 8.4 4,748 5,056
Long-term lease liabilities 625 683
Employee benefits 268 265
Other non-current liabilities 4.3 182 174
Non-current provisions 6.1 131 110
Deferred tax liabilities 205 152
*NON CURRENT LIABILITIES* *6,159* *6,440*
Bank overdrafts 8.2 9 —
Short-term borrowings 8.4 52 537
Short-term lease liabilities 148 148
Income tax payable 221 177
Current provisions 6.1 71 79
Trade and other payables 4.3 4,506 4,540
Liabilities directly associated with assets held for sale or for distribution 3.1 — 4,319
*CURRENT LIABILITIES* *5,007* *9,800*
*TOTAL SHAREHOLDER’S EQUITY AND LIABILITIES* *15,596* *20,794*
*2.1.4** Consolidated cash flow statement*
(in million euros) *NOTES* *FIRST HALF FISCAL 2024* *FIRST HALF FISCAL 2023 IFRS 5 restated*
*Operating profit* *642* *509*
Depreciation, amortization and impairment of intangible assets, property, plant
and equipment and right-of-use assets^(1) 235 228
Change in client investments^(2) (5) (37)
Provisions (18) (23)
(Gains) losses on disposals (74) (2)
Other non-cash items 16 19
Dividends received from companies accounted for using the equity method 2 2
Net interest expense paid (17) (6)
Interests paid on lease liabilities (11) (8)
Income tax paid (111) (51)
*Operating cash flow* *659* *631*
Change in inventories 3 (8)
Change in trade and other current operating assets (543) (544)
Change in trade and other payables 27 (72)
*Change in working capital from operating activities* *(513)* *(624)*
*Net cash provided by operating activities from continuing operations* *146* *7*
*Net cash provided by operating activities from discontinued operations* 3.1 *172* *254*
*NET CASH PROVIDED BY OPERATING ACTIVITIES* *318* *261*
Acquisitions of property, plant and equipment and intangible assets (181) (162)
Disposals of property, plant and equipment and intangible assets 15 17
Change in financial assets and share of companies accounted for using the equity method 3 (28)
Business combinations (54) (12)
Disposals of activities 3.1 148 1
*Net cash used in investing activities from continuing operations* *(69)* *(184)*
*Net cash used in investing activities from discontinued operations* *3.1* *(1,740)* *(58)*
*NET CASH USED IN INVESTING ACTIVITIES* *(1,809)* *(242)*
Dividends paid to Sodexo S.A. shareholders 7.1 (456) (352)
Dividends paid to non-controlling shareholders of consolidated companies (1) (4)
Purchases of treasury shares 7.1 (26) (57)
Sales of treasury shares 7.1 (2) —
Change in non-controlling interests — —
Proceeds from borrowings 8.4 326 267
Repayment of borrowings 8.4 (1,133) (272)
Repayments of lease liabilities (82) (98)
*Net cash provided by/(used in) financing activities from continuing operations* *(1,374)* *(516)*
*Net cash provided by/(used in) financing activities from discontinued operations* 3.1 *1,065* *(7)*
*NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES* *(309)* *(523)*
*NET EFFECT OF EXCHANGE RATES AND OTHER EFFECTS ON CASH* *15* *(100)*
*Net effect of exchange rates and other effects on cash from continuing operations* *41* *(70)*
*Net effect of exchange rates and other effects on cash from discontinued operations* *(26)* *(30)*
*CHANGE IN NET CASH AND CASH EQUIVALENTS* *(1,785)* *(604)*
*NET CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD* *3,230* *3,217*
Net cash and cash equivalents, Beginning of the period from continuing operations 2,025 3,217
Net cash and cash equivalents, Beginning of the period from discontinued operations 1,205
*NET CASH AND CASH EQUIVALENTS, END OF THE PERIOD* *8.2* *1,445* *2,613*
of which Net cash and cash equivalents from continuing operations, end of the period 1,445 1,450
of which Net cash and cash equivalents from discontinued operations, end of the period — 1,163
(1) Including 91 million euros corresponding to the right-of-use assets depreciation recognized in First half Fiscal 2024 pursuant to IFRS 16 (93 million euros recognized for First half Fiscal 2023).
(2) Since the First half Fiscal 2024, the change in client investments previously classified in net cash used in investing activities is presented within the cash flow provided by operating activities in the consolidated cash flow statement. This change of presentation has been included in the comparative information of the First half Fiscal 2023.
*2.1.5** Consolidated statement of changes in shareholders’ equity*
(in million euros)
*NUMBER OF SHARES OUTSTANDING*
*SHARE CAPITAL*
*ADDITIONAL PAID-IN CAPITAL*
*RESERVES AND COMPREHENSIVE INCOME*
*CURRENCY TRANSLATION ADJUSTMENT*
*TOTAL SHAREHOLDERS’ EQUITY*
*ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT* *NON-CONTROLLING INTERESTS* *TOTAL*
*Notes* *7.1*
*Shareholders’ equity as of *
*AUGUST 31, 2023* *147,454,887* *590* *248* *4,514* *(811)* *4,542* *12* *4,554*
Net profit for the period (74) (74) 6 (68)
Other comprehensive income (loss), net of tax 12 502 514 — 514
*Comprehensive income* *(62)* *502* *440* *6* *446*
Dividends paid (456) (456) (1) (457)
Distribution of Pluxee shares (96) (96) (7) (103)
Treasury share transactions (28) (28) (28)
Share