Sodexo continues organic growth in revenues
January 08, 2014
Sodexo has reported its revenue for the first quarter of Fiscal 2014, which ended on 30 November 2013.
Globally organic growth increased to +2.7%:
On-site Services were up +2.2% thanks to the success of integrated service contracts and solid business development in North America.
Benefits and Rewards Services organic growth accelerated to +12.3% for the period.
Total consolidated revenue was down at -1.9%, after including the nearly 5% negative currency effect that has no impact on operations given that revenues and expenses are in the same currency.
Revenues in the United Kingdom and Ireland region came to 0.4 billion euro in the quarter. Organic growth in the region was +0.4%.
At constant scope of consolidation and exchange rates, corporate revenues fell -1.0%, but excluding the impact of the London Paralympic Games in September 2012, first quarter organic growth would have been +4.4%.
In Healthcare, organic growth accelerated to +11.1% due to extensions of service contracts with several hospitals such as Brighton and Sussex and North Staffordshire University Hospitals.
In Education, the -8.5% decrease in revenues primarily reflects Sodexo’s selective approach to new business. Sodexo recently won a prestigious contract with University College London (UCL).
Commenting on these figures, Sodexo CEO Michel Landel said: “Sodexo continued to demonstrate robust organic growth in the first quarter. Our unique quality of life service offering remains in strong demand among our clients. Accelerated growth in North America and the development of facilities management services confirm this. Our Benefits and Rewards Services also made a very good start to the year, boosted by a strong marketing dynamic in Latin America.”