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Fiscal 2006: Sodexho's overall growth accelerates + 9.4 % and organic growth increases to + 6.4 % from + 4.3 % in Fiscal 2005
10/4/2006
Confirmed leadership in Food and Facilities Management Services and continuing rapid development in Service Vouchers & Cards: + 15.9%
- Confirmed leadership in Food and Facilities Management Services:
- Strong acceleration of organic growth in North America (+ 5.0 %) and Continental Europe (+ 5.2 %) driven, in particular, by Healthcare and Seniors
- Return to growth in United Kingdom and Ireland: + 4.8 %
- High activity levels in the Rest of the World: + 16.1 % (Remote Sites, Latin America and Asia-Australia)
- Continuing rapid development in Service Vouchers & Cards: + 15.9%
SODEXHO ALLIANCE (Euronext Paris FR0000121220 - SW / NYSE: SDX), the leading global provider of food and facilities management services, today announced consolidated revenues for Fiscal 2006, up 9.4 %. Group organic growth accelerated from + 4.3% in Fiscal 2005 to + 6.4 % in Fiscal 2006.
Revenue by activity | ||||||
In millions of euro (IFRS) | Fiscal 2005 | Fiscal 2006 | Organic growth(1) | Currency impact(2) | Acquisitions | Total change |
Food and Facilities Management services: | 11,394 | 12,431 | 6.2% | 2.7% | 0.2% | 9.1% |
- North America | 5,004 | 5,479 | 5.0% | 4.5% | - | 9.5% |
- Continental Europe | 3,922 | 4,148 | 5.2% | - | 0.6% | 5.8% |
- United Kingdom and Ireland | 1,302 | 1,370 | 4.8% | 0.4% | - | 5.2% |
- Rest of the World | 1,166 | 1,434 | 16.1% | 6.9% | - | 23.0% |
Service Vouchers and Cards | 305 | 373 | 15.9% | 6.0% | 0.6% | 22.5% |
Elimination of intragroup revenues | -6 | -6 | ||||
TOTAL | 11,693 | 12,798 | 6.4% | 2.8% | 0.2% | 9.4% |
(1) Organic growth: increase in revenues at constant consolidation scope and exchange rates.
(2) Currency impact is calculated by applying the average exchange rate for the prior year to the current fiscal year figures
Acceleration of organic revenue growth during the fiscal year resulted primarily from:
- Development in Healthcare and Seniors (+ 8.1 %),
- Progress in Business & Industry (+ 6.4 %), and
- Strong growth in Service Vouchers and Cards (+ 15.9%).
In Education, the modest growth reflects the Group's selectivity in public sector markets (+ 3.7 %).
Michel Landel, Chief Executive Officer of Sodexho, said: “During Fiscal 2006, we have continued to implement our strategy. Our client retention rate continued to improve, reaching 93.9%. Comparable unit sales growth on existing sites exceeded 3% and our development rate of new contracts awarded during the fiscal year was above 9%. The Group is currently closing and auditing its accounts for Fiscal 2006 in IFRS. These accounts will be published on November 16. Growth in our operating profit should be consistent with, if not slightly above, our objective of + 6%. This performance gives us confidence in our medium term objective to achieve average annual organic revenue growth of 7%.”
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About Sodexho Alliance
SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the leading global provider of Food and Management services, with more than 324,000 employees on 26,700 sites in 76 countries. For Fiscal 2005, which closed August 31, 2005, SODEXHO ALLIANCE had sales of 11.7 billion euro. Listed on Euronext Paris and on the New York Stock Exchange, the Group's current market capitalization is 6.0 billion euro.
