The outlook came as the company reported better-than-expected full-year revenue, driven by all-time-high client retention rate and strong new business growth, despite the inflationary backdrop.

The Paris-based firm posted annual revenue of 21.13billion euros, compared to a 20.73 billion euros forecast by analysts polled by the company.

Sodexo, which serves businesses, armed forces, hospitals,schools and events attendees, said revenue of its main On-site Services unit reached 99% of its 2019 levels in the fourth quarter.

Pointing to the unit's return to pre-pandemic levels, the group now expects revenues and margins for 2023 to return to 2019 levels.

For 2023, Sodexo forecasts organic revenue growth of between 8% and 10%, driven by further progress in new business and inflation, and underlying operating profit margin around 30%.

(Reporting by Federica Mileo in Gdansk; Editing by Josephine Mason)