This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Sodexo: Solid Revenue And Profit Growth In Fiscal 2012

This performance is in line with the objectives set at the beginning of the fiscal year.

Organic revenue growth accelerated compared to the previous year, in particular reflecting:

  • the success of Sodexo’s integrated and unique Quality of Life services offer
  • its strong growth in emerging markets
  • the contribution from contracts for two prestigious sporting events, the London Olympics and Rugby World Cup in New Zealand.

Facilities management services now represent 26% of consolidated revenues, compared with 18% in Fiscal 2005. Sodexo today provides more than 100 types of services to companies, universities, hospitals, senior residences, correctional facilities and individuals. Facilities management services grew three times the rate of foodservices during Fiscal 2012.

  • On-site Services revenues increased + 14% to 17.5 billion euro, including organic growth of + 6.3%.
  • By client segment, organic growth was as follows:
    • + 9.3% in Corporate, a clear acceleration over the + 6.7% achieved in Fiscal 2011
    • + 2.7% in Health Care and Seniors, reflecting modest business development(new contract wins)
    • + 4.2% in Education, a result of satisfactory growth in North America.

Organic growth for Benefits and Rewards Services 1 reached + 8.5%, driven by growth in Latin America.

Primary performance indicators

Sodexo’s primary performance measures during the year were as follows:

  • 94.1% client retention rate, an increase of 0.1% compared to the previous year
  • 3.4% existing site growth compared with 4.3% the previous year, reflecting a decline in volumes, particularly in the Corporate segment and in Europe during the second half of the year
  • 7.6% business development rate (new contract wins), a slight increase over the previous year, reflecting the Group’s numerous business successes
  • The retention rate for all employees reached 60% and 84.7% for site managers.

During Fiscal 2012, a fourth global engagement survey was conducted among 130,000 employees in 60 countries. The overall engagement rate has increased by 9 points in the last four years. 85% of respondents continue to rate Sodexo as a better employer than its competitors.

1 Sodexo has chosen to modify the name of the Motivation Solutions activity to Benefits and Rewards Services

Increase in operating profit

Operating profit was 984 million euro, an increase of + 15.4%, compared with the prior year and + 13.6% at constant exchange rates.

2 of 14

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs