Sodexo: Nine-Month Fiscal 2013 Revenues up +3.7%, including +2.3% from Organic Growth

Sodexo today reported its revenue for the first nine months of Fiscal 2013, which ended on May 31, 2013.

  • On-site Services: Integrated services offers and emerging markets led the Group’s resistance in a particularly challenging economic environment
  • Benefits and Rewards Services: Organic growth accelerated to +6.7

"Growth over the first nine months remained satisfactory in a challenging global environment."

Michel LandelSodexo CEO

"Our Quality of Life Services offer is well aligned with the needs of our clients, who are looking for an extensive range of services for their facilities around the world. Our well-adapted offer also drove the growth achieved in Benefits and Rewards Services in the third quarter, particularly in Latin America.
In addition, emerging markets continue to offer strong growth potential."

On-site Services

On-site Services revenues totaled 13.6 billion euro in the first nine months of Fiscal 2013, up +3.7 on the year-earlier period. Organic growth stood at +2.1 or +2.5 excluding the positive impact of the Rugby World Cup in Fiscal 2012. Facilities management services continued to deliver gains exceeding growth in foodservices in every region, confirming the validity of the Group’s positioning. The fiscal year continues to be shaped by a decline in foodservices volumes and rising pressure from clients seeking to lower costs.

  • Organic growth in the Corporate segment amounted to +3.8, or +4.6 excluding the impact of the Rugby World Cup. It was driven by two positive factors:
    • Increased demand from corporates in North America and Europe for integrated Quality of Life Services contracts.
    • Sodexo’s solid growth in emerging markets, despite the economic slowdown observed since last summer.
  • The +0.4 improvement in the Healthcare and Seniors segment primarily reflected the lower client retention rate in North America in Fiscal 2012. Nevertheless, Sodexo’s recent major contract wins in North America helped to drive a gradual return to growth in this client segment in the third quarter.
  • In Education, organic growth came to +0.2, in particular due to a more selective approach to new contracts in the public school sector.

Benefits and Rewards Services

Organic growth in the Benefits and Rewards Services activity over the first nine months of the fiscal year accelerated to reach +6.7, gaining momentum compared with the first half. This performance was primarily due to sustained development in Latin America.

  

Conference call

Sodexo will hold a conference call (in English) today at 8:30 a.m. (Paris time), to comment on revenue for the first nine months of Fiscal 2013. A recording of the conference will be available by dialing +44 (0) 1452 550 000, followed by the pass code 98 39 78 82.