Sodexo: Fiscal 2015, a year of progress
November 19, 2015
Sodexo’s Chief Executive Officer Michel Landel presents today the Group’s performance for the fiscal year ended August 31, 2015.
A solid financial performance and improved profitability:
- Total Revenue growth of 10%, including organic growth of 2.5%;
- Operating profit up 21.7%: +11.9%, excluding currency effects and FY 2014 exceptional charges, exceeding the 10% growth objective set in early FY 2015, with an operating margin up 40 basis points;
- Growth in Group net income of 42.9% and 32.4% excluding currency effects;
- Net cash provided by operating activities of more than €1 billion.
Proposed dividend of €2.20 per share (up 22.2%) and a €300 million share repurchase program for cancellation purposes.
For Fiscal 2016, Sodexo’s objective is revenue growth of around 3% and an increase in operating profit of around 8% (excluding currency effects and before exceptional items).
Commenting on these figures, Michel Landel, Sodexo CEO said:
« Fiscal 2015 was a year of progress for Sodexo. We won major On-site Services contracts, with a significant facilities management services component. Growth remained strong in Benefits and Rewards Services. Our results clearly demonstrate our efforts in terms of margin improvement and cash generation.
This robust performance confirms the relevance of the strategic choices made to develop our integrated Quality of Life services offering, which combines all of the Group's activities.
Fiscal 2016 is getting under way with some positive trends, but a volatile global economic environment means some adjustments will be required. As a result, for the current fiscal year we are targeting organic revenue growth of around 3%, and an increase in operating profit of around 8%, excluding currency effects and exceptional items.
Our potential is significant. We are confident in our ability to achieve our medium-term objectives. »
Comments from Siân Herbert-Jones, Sodexo's Group Chief Financial Officer:
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