Sodexo: Organic Revenue Growth of 2.3% for the First Nine Months of Fiscal 2014
July 09, 2014
Sodexo today reported its revenues for the first nine months of Fiscal 2014, which ended on May 31, 2014.
On-site Services (+1.7%): with growth led by integrated Quality of Life Services offers.
Benefits and Rewards Services (+14%): an excellent performance, gaining momentum compared with Fiscal 2013.
Commenting on these figures, Sodexo CEO Michel Landel said:
“We delivered organic growth in the first nine months thanks notably to strong client demand for our integrated Quality of Life Services offer in the Corporate segment across the globe. Our teams are highly mobilized to provide our clients with the savings that they expect and to improve our competitiveness. Finally, we confirm our objective to achieve full-year Fiscal 2014 growth in operating profit of 11% at constant exchange rates.”
On-site Services revenues totaled 13.3 billion euro for the nine-month period, reflecting organic growth of 1.7%. Excluding the calendar effect, the level of activity in the third quarter was very similar to that observed in the first half of the fiscal year.
Organic growth in the Corporate segment amounted to 1.9%, reflecting very mixed situations:
- Integrated Quality of Life Services offers continued to prove successful and relevant in all geographic regions, primarily due to their technical maintenance services component. Facilities Management services continued to expand at a much faster rate than foodservices.
- Foodservices volumes continued to decline, particularly in Europe, reflecting both employee downsizing and cost savings measures taken by clients.
- Remote Sites revenues slowed sharply, particularly in the mining sector in Latin America, Australia and Africa.
However, organic growth in the Corporate segment, excluding Remote Sites, was around 4%.
In Healthcare and Seniors, the Group’s organic growth for the first nine months of Fiscal 2014 was 1.4%. This improvement on prior-year trends was nevertheless limited by a slower-than-expected ramp-up of certain new integrated multi-site services contracts in North America.
At 1.7%, the Group’s organic growth in the Education segment began to recover compared with Fiscal 2013, reflecting notably a slightly higher number of school and university consumers in North America, and solid expansion in emerging markets that are capitalizing on Sodexo’s expertise by client segment.
Benefits and Rewards Services
Organic growth in Benefits and Rewards Services revenues of 14.0% for the first nine months of the year was once again excellent and much brisker than in Fiscal 2013, due to:
- An excellent sales dynamic in Latin America (with organic growth of nearly 22%), driven by solutions provided to an ever-increasing number of beneficiaries and higher face values on issued vouchers and cards.
- A robust performance in Europe and Asia (with organic growth of 4%).
Sodexo will hold a conference call (in English) today at 8:30 a.m. (Paris time), to comment on revenue for the first nine months of Fiscal 2014. Those who wish to connect may dial +44 (0) 1452 555 566 (from outside France) or 01 76 74 24 28 (from within France), followed by the pass code 63 43 58 94.