Sodexo posts healthy profits for fiscal 2009

10 November 2009

Revenues at global FM provider Sodexo were up 7.9 per cent, including 2.5 per cent organic growth for the year ended August 31, 2009.

Operating profit of 746 million euro was up 8.1 per cent and growth in net income was 4.5 per cent after acquisition financing, maintaining proposed dividend at 1.27 euro per share
 
Michel Landel, chief executive officer, said that revenues for 2010 will be maintained at the same level. Operating profit is expected to be around 750 and 770 million euro, at constant exchange rates

"In a particularly difficult environment, Sodexo again increased revenues and profits in Fiscal 2009 to a level in line with its objectives,” he said.

“As we anticipated last year, the crisis has slowed our new business development and weighed on comparable unit growth on existing sites. These impacts will continue during Fiscal 2010 such that, for the coming year, consolidated revenues are likely to remain at the same level as in Fiscal 2009.”

There was marked growth in on-site services solutions.

By geography, organic growth in on-site service solutions resulted from a moderate 1.8 per cent in North America, driven mainly by the fast-growing healthcare, seniors and education segments, which offset the downturn experienced in the corporate market.

In Continental Europe, despite revenue declines in corporate and sports and leisure, revenues were maintained, rising just 0.1 per cent.

There was solid activity in the UK and Ireland, with 6.7 per cent growth excluding the impact of the 2007 Rugby World Cup hospitality contract;

Sodexo saw continued strong activity in the rest-of-the- world, rising nearly 12 per cent, resulting particularly from double-digit growth in remote sites and in Latin America.
 
In total, FM services also contributed strongly to this organic growth, reaching 23.9 per cent of group consolidated revenues in fiscal 2009, compared to 21.6 per cent the previous year.
 
The report noted four strategic acquisitions during fiscal 2009.

In the French market, Sodexo picked up the Score Group, the fourth-largest provider of foodservices in France, “consolidating Sodexo’s position in the French market, especially in the corporate segment in the Paris region”.

Sodexo bought Zehnacker in Germany, a specialist in FM in the healthcare segment. “This acquisition enhances the group’s ability to provide comprehensive services to major international clients in the high potential German market.” 

In India it bought Radhakrishna Hospitality Services Group (RKHS) and in North America it picked up Comfort Keepers, “one of the leading providers of non-medical in-home services for seniors and persons in need of support. This Seniors market has significant worldwide potential for Sodexo.”