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.
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