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Sodexho announces new acceleration in organic revenue growth for Fiscal 2007 across all segments: + 8.4%
10/3/2007
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- Intensified development in Food and Facilities Management Services: + 8.1%
- Continued rapid growth in Healthcare and Seniors: + 9.0%
- Marked progression in Business & Industry: + 8.1%
- Sound performance in Education: + 7.0%
- Excellent performance in Service Vouchers and Cards: + 20.1%
(Paris, October 3, 2007) -SODEXHO ALLIANCE (Euronext Paris FR0000121220 - SW /: OTC:SDXAY), the global leader in most of its activities, today announced consolidated revenue for Fiscal 2007, which ended August 31, 2007.
Revenue by activity | ||||||
In millions of euro | Fiscal 2006 | Fiscal 2007 | Organic growth(1) | Currency impact(2) | Acquisitions | Total change |
Food and Facilities Management services: | ||||||
- North America | 5,479 | 5,492 | +8.8% | -7.8% | -0.8% | +0.2% |
- Continental Europe | 4,148 | 4,388 | +5.1% | +0.1% | +0.5% | +5.8% |
- United Kingdom and Ireland | 1,370 | 1,475 | +6.1% | +1.6% | - | +7.7% |
- Rest of the World | 1,434 | 1,591 | +15.3% | -4.6% | +0.2% | +10.9% |
TOTAL | 12,431 | 12,946 | +8.1% | -3.8% | -0.16% | +4.1% |
Service Vouchers and Cards | 373 | 447 | +20.1% | -2.5% | +2.1% | +19.7% |
Elimination of intragroup revenues | (6) | (8) | ||||
TOTAL | 12,798 | 13,385 | +8.4% | -3.7% | -0.1% | +4.6% |
1) Organic growth: increase in revenue at constant consolidation scope and exchange rates.
2) The currency impact is a negative 3.7%. However, Sodexho subsidiaries' income and expenses are expressed in the same currency; hence, contrary to exporting companies, currency variations carry no operating risk.
Commenting on Sodexho's Fiscal 2007 revenue, Sodexho CEO Michel Landel said:
“For the second consecutive year, organic growth improved two percentage points over the prior year. This excellent performance demonstrates acceleration in all our client segments. Client retention was close to 94%; comparable unit growth - or revenue growth on existing sites - was around 5%; and the business development rate, representing new contract awards, remained high at approximately 9%.
As a result, operating profit progression for Fiscal 2007 (excluding currency impact) should be in the range of 12-15%. Our productivity actions to more effectively manage food and labor costs have enabled us to curb current inflationary pressures. At the same time, we have intensified our investments in human resources, information technology and communications.
I remain fully confident that Sodexho will achieve its Ambition 2015 of 7% average annual compound revenue growth.”
For more, please download the press release in pdf hereafter.
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About Sodexho Alliance
SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the global leader in most of its activities, employing more than 332,000 employees on 28,300 sites in 80 countries as of August 31, 2006. Listed on Euronext Paris, the Group's current market capitalization is 7.9 billion euro.
