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Sodexho announces a strong start to Fiscal 2008 with first quarter organic revenue growth of + 10.9%
1/9/2008
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- Food and Facilities Management services:
- Success of 2007 Rugby World Cup Corporate Hospitality contract
- Acceleration of organic growth in Continental Europe
- Solid performance in North America
- Service Vouchers and Cards: high level of growth maintained in Europe and Latin America
- Fiscal 2008 objectives confirmed
(Paris - January 9, 2008) - SODEXHO ALLIANCE (Euronext Paris FR0000121220 - ADR / OTC:SDXAY), a leading global provider of Food and Facilities Management services , today announced consolidated revenues for first quarter Fiscal 2008, which ended November 30, 2007.
Revenue by activity | ||||||
In millions of euro (in IFRS) | Q1 Fiscal 2007 | Q1 Fiscal 2008 | Organic growth(1) | Currency impact(2) | Acquisitions, net (3) | % change |
Food and Facilities Management services |
|
|
|
|
| |
North America | 1,541 | 1,486 | 6.5% | -10.3% | 0.3% | -3.6% |
Continental Europe | 1,151 | 1,240 | 7.4% | 0.3% | - | 7.7% |
United Kingdom and Ireland | 366 | 500 | 41.1% | -4.5% | - | 36.6% |
Rest of the World | 397 | 416 | 9.1% | -3.3% | -0.8% | 4.9% |
Service Vouchers and Cards | 98 | 123 | 13.9% | -1.2% | 12.2% | 24.9% |
Elimination of intragroup revenues | -2 | -2 | - | - | - | - |
Total | 3,551 | 3,763 | 10.9% | -5.3% | 0.4% | 6.0% |
(1) Organic growth: increase in revenues at constant scope of consolidation and exchange rates.
(2) The currency impact is a negative 5.3%. However, Sodexho subsidiaries' income and expenses are expressed in the same currency; hence, contrary to exporting companies, currency variations carry no operating risk.
(3) Acquisitions concern primarily the concierge services company, Circles, in North America, Vivaboxes and Tir Groupé in the Services Vouchers and Cards activity and the divestiture of AIMS, a correctional services business in Australia.
Commenting on first-quarter revenues, Sodexho CEO Michel Landel said: “As expected, the strong organic growth of the first quarter reflects the success of the 2007 Rugby World Cup Corporate Hospitality contract, the strength of our geographic positioning and the diversity of our client segments. In this regard, it is important to note that with nearly two thirds of our consolidated revenue coming from the Healthcare, Education, Defense and Correctional Services segments, and even more in North America, where over three-quarters of our business is in these segments, we are less sensitive to economic downturns. We have leadership positions in these high potential markets with a significant portion generated through Facilities Management services. Our Service Voucher and Cards activity also is a driver of growth in which we are differentiating ourselves through a high level of innovation in a strong global market.
Fiscal 2008 is therefore beginning on an encouraging note, fully in line with our strategy and continuing to demonstrate our ability to control inflation in food costs. We reiterate our objective for annual organic revenue growth exceeding 7% and an operating profit increase of around 12% at constant exchange rates for this year. I am confident that this fiscal year will mark another step in our progress toward achieving our Ambition 2015.”
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About Sodexho Alliance
SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, a world leader in Food and Facilities Management services in most markets, with more than 342,000 employees on 29,000 sites in 80 countries. For Fiscal 2007, which closed August 31, 2007, SODEXHO ALLIANCE had revenues of 13.4 billion euro. Listed on Euronext Paris, the Group's current market capitalization today was more than 6.0 billion euro.
