172@29@17@240!~!172@29@0@53!~!|news|business|sodexo-warns-of-deeper-fall-in-sales-as-coronavirus-persists-5517611.html?utm_source=MC_OpeninApp!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
you are here: HomeNewsBusiness
Last Updated : Jul 07, 2020 01:52 PM IST | Source: Reuters

Sodexo warns of deeper fall in sales as coronavirus persists

The French firm, which provides catering for businesses, industrial sites, the military, government agencies, hospitals, schools and sports events, said it expects sales for the fourth quarter ending on August 31 to fall 27 percent.

Reuters

Sodexo warned on Tuesday that its fourth-quarter and half-year sales will fall more sharply than previously expected as the coronavirus pandemic remains strong in North America, Latin America and India.

The French firm, which provides catering for businesses, industrial sites, the military, government agencies, hospitals, schools and sports events, said it expects sales for the fourth quarter ending on August 31 to fall 27 percent.

It forecast a 28 percent slump of around 3 billion euros ($3.4 billion) in the second half of its fiscal year.

Close

The Paris-based firm in April had forecast a 15 percent slump in the fourth quarter and a 25 percent fall for the second half.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Sodexo's third-quarter sales fell a better-than-expected 29.9 percent to 3.9 billion euros versus an anticipated 33 percent fall, with its education and sports and leisure businesses the hardest hit.

With clients ranging from England's Royal Ascot Racecourse to the US. Marine Corps, Sodexo said that sports and leisure sites had been forced to close while corporate services were hit by lockdowns and work-from-home policies.

In its education segment, down 53.9 percent, Sodexo said that with most schools and universities closing from mid-March, sales were limited to meals provided by local authorities to families in need.

"I hope we have touched the bottom, but there is still a lot of uncertainty," CEO Denis Machuel said on a call, adding that the group would be better placed to make predictions when it publishes its next earnings in October, after schools and offices reopen.

"Facilities management has held up well, notably the cleaning and disinfection services, which saw good growth, and will continue to in the coming weeks and months," Machuel said. The division also provides security, maintenance and reception services.

Sodexo also mitigated the loss of hospital retail sales from the lack of visitors by selling groceries to medical staff, he added.

At the end of May, Sodexo had nearly 5 billion euros in liquidity.

By 0711 GMT Sodexo shares were down 1.14 percent at 63.7 euros.

Follow our full coverage of the coronavirus pandemic here.
First Published on Jul 7, 2020 01:45 pm
Sections