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Sodexo Announces 9.2% Organic Revenue Growth for First-Half Fiscal 2008
4/2/2008
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- Food and Facilities Management Services:
- Robust performance in North America
- Organic growth accelerating in Continental Europe
- Strong contribution from 2007 Rugby World Cup corporate hospitality contract
- Increased growth momentum in Asia, Latin America and Remote Sites
- Service Vouchers and Cards: continued strong growth
Paris, April 2, 2008. SODEXO (Euronext Paris FR0000121220 - SW / OTC:SDXAY), a world leader in Food and Facilities Management Services, today announced consolidated revenue for the first half of Fiscal 2008, ended February 29, 2008.
Revenue by activity | ||||||
In millions of euro | First Half Fiscal 2007 | First Half Fiscal 2008 | Organic growth(1) | Currency impact(2) | Acquisitions | Total change |
Food and Facilities Management services | - | |||||
North America | 2,890 | 2,759 | 5.8% | -10.9% | +0.6% | -4.5% |
Continental Europe | 2,236 | 2,416 | 8.0% | +0.1% | -0.1% | +8.0% |
United Kingdom and Ireland | 720 | 827 | 22.3% | -7.4% | - | +14.9% |
Rest of the World | 766 | 816 | 11.2% | -3.6% | -1.0% | +6.6% |
Service Vouchers and Cards | 211 | 267 | 17.3% | -1.6% | +10.5% | +26.2% |
Intra-group eliminations | -4 | -5 | - | - | - | - |
Total | 6,819 | 7,080 | 9.2% | -5.8% | +0.4% | +3.8% |
1) Organic growth: revenue growth, at constant scope of consolidation and exchange rates.
2) The currency impact was a negative -5.8%, but contrary to exporting companies, the revenues and expenses of Sodexo subsidiaries are denominated in the same currency. Consequently, foreign exchange variations do not result in operating risks.
Commenting on revenues for the first half of Fiscal 2008, Sodexo's CEO Michel Landel said:
“Sodexo's organic growth continued to gather pace, reaching 9% compared with 8.2% for the first-half of last year. This renewed performance is a clear illustration of our solid position permitting us to expand in high potential arkets that are less subject to cyclical swings: we accelerated our penetration of growth markets such as healthcare and education, bolstering our worldwide position in Facilities Management and Service Vouchers and Cards and benefited from significant growth drivers around the world.
Let me remind you Sodexo does business locally and unlike exporting companies, revenues and operating expenses of our subsidiaries are in the same currency.
Negative exchange rate variations recorded in this first half (-5.8%) only reflect a translation impact on our financial statements and therefore do not represent any operational risk.
The strong performance of our teams in this first half gives us confidence that we will achieve our objectives for the current fiscal year of annual organic revenue growth of more than 7%, and around 12% for operating profit, at constant exchange rates, despite existing uncertainties in the current economic environment.”
To read the full text, please download the press release in pdf below.
Press release and Appendices in PDF Presentation in PDF
You can also listen to the recording of the conference call.
Telephone conference call
SODEXO will hold a conference call by telephone to comment on its revenues for the first half of Fiscal 2008, at 8:30 am (French time) today. Persons wishing to take part are invited to dial + 33 1 72 28 08 88. The press release and presentation of results will be available for consultation on the Group website:
www.sodexo.com, under “latest news” beginning at 7:00 am. A recording of the conference call will be available by dialing +33 1 72 28 01 49, code 217 729#.
About Sodexo
SODEXO was founded in Marseille by Pierre Bellon in 1966. It is the world leader in most of its Food and Facilities Management markets, employing more than 340,000 people on 29,300 sites in 80 countries. SODEXO reported revenues of 13.4 billion euros for fiscal 2006-2007, which closed August 31, 2007. The Group is listed on Euronext Paris, with a current market capitalization of 6.21 billion euro.
