Highlights of Sodexo Group’s performance for the first half of Fiscal 2013:
- In a particularly difficult economic environment :
– Increased revenues of + 4.3%
– Organic growth of + 2.7%, driven by development of facilities management services
– Operating profit stable at 528 million euro
– Operational efficiency improvement and cost reduction program well underway and enlarged - Fiscal 2013 objectives detailed
CEO Michel Landel commented:
“In a more difficult economic environment, Sodexo is showing good resilience. Our Quality of Life services offer continues to be successful. Our clients are increasingly interested in our wide range of integrated services. Our leading position in emerging markets is also a driver of future growth. The operational efficiency improvement and cost reduction program, already underway, will be further enlarged. We are confident in the future and are maintaining our objectives for Fiscal 2015.”
Revenue growth of + 4.3%
Consolidated revenues for the first half of Fiscal 2013 were 9.5 billion euro, an increase of + 4.3%, including + 0.7% from acquisitions and changes in scope and + 1.5% from currency impacts.
Organic growth
Organic revenue growth in the first half of Fiscal 2013 was + 2.1%, or + 2.7% excluding the positive impact from the Rugby World Cup on the first quarter of Fiscal 2012.
Organic growth for On-site Services was + 2% and + 2.7%, excluding Rugby World Cup. The first half of Fiscal 2012 had benefited from the 53 million euro in revenue generated by the 2011 Rugby World Cup.
Facilities management services accounted for over one quarter of consolidated revenue. As was the case in the last two fiscal years, revenues from these services are continuing to grow three times faster than foodservices revenues, providing renewed confirmation of the relevance of the Group’s strategic positioning.
Organic growth in Benefits and Rewards Services was +4.3%, reflecting:
- continued dynamism in Latin America
- slightly higher performance than in the second half of Fiscal 2012 (adjusted for the decrease in activity in Hungary resulting from unfavourable legislation introduced in that country on January 1, 2012)
Stated objectives for Fiscal 2013
- organic revenue growth between 1% and 2%
- stable operating profit compared with Fiscal 2012
Further objectives:
- consolidated operating profit margin of 6.3% by the end of Fiscal 2015
- medium term objective of +7% average annual consolidated revenue growth