This Day On The Street
Continue to site
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

Sodexo: Solid Revenue And Profit Growth In Fiscal 2012

Subsequent events

Sodexo completed its acquisition of Servi-Bonos, S.A. de C.V. in Mexico on November 2, 2012. Servi-Bonos will be consolidated in the Group’s financial statements for ten months in Fiscal 2013.

Servi-Bonos is a leading provider of food and meal vouchers and cards, serving close to 5,000 clients in Mexico through its nationwide network. In 2011, Servi-Bonos generated issue volume (the face value of vouchers and cards multiplied by the number of vouchers and cards issued) of close to 300 million euros.

This acquisition reinforces Sodexo’s international leadership in Quality of Life services in the buoyant Mexican growth economy.


At the November 6, 2012 Board of Directors meeting, Chief Executive Officer Michel Landel underlined the effectiveness of the Group’s long-term strategy, based on a unique range of Quality of Life services, and an unparalleled global network and undisputed leadership in emerging countries.

Michel Landel said that Fiscal 2013 begins with sharply contrasting trends:

On the one hand, the Group benefits from:
  • sustained development and growth in Sodexo's activities (in On-site Services and Benefits and Rewards Services) in emerging economies, where the Group continues to strengthen its positions
  • important new contract awards, such as with HCR ManorCare, one of the largest chains of nursing homes in the U.S. and a stronger pipeline of prospective clients in North America, notably in Health Care and Seniors
  • a differentiated integrated service offering that responds to the increasing demand for mutualized services by major international companies.

At the same time, the current economic environment is weighing on profitability, particularly in Europe.

As a result, for Fiscal 2013 Sodexo projects modest growth 1 in revenues and operating profit compared to the previous year, which benefited from specific events (Rugby World Cup, the Olympics and a 53 rd week in North America).

In this context, Sodexo’s management and teams are fully mobilized around specific actions to:
  • accelerate profitable growth by capitalizing particularly on Sodexo's offers and expertise, by client segment and sub-segment
  • strengthen competitiveness with a program of operational efficiency and cost reduction. During the past three years, the Group has achieved 150 million euros in economies in overheads. The program launched today should allow Sodexo, within three years, to reduce on site operating costs by 0.6% of revenues and lower overhead costs by 0.4% of revenues, improving productivity at all levels. The program’s implementation will result in exceptional costs between 130 and 150 million euro over the next 18 months with a positive impact of the same amount in Fiscal 2015 and the following fiscal years.

As a result of the initiatives undertaken and the effectiveness of the Group's strategy, CEO Michel Landel confirms Sodexo’s medium term objectives to:
  • achieve an average of 7% annual consolidated revenue growth
  • reach a consolidated operating margin of 6.3% by the end of Fiscal 2015.

Michel Landel underlined Sodexo’s major strengths:
  • a potential market estimated at over 800 billion euro
  • a unique Quality of Life services offer particularly adapted to respond to changing client needs
  • an unparalleled global network covering 80 countries
  • undisputed leadership in the emerging markets
  • a strong culture and engaged teams
  • excellent financial strength
  • its independence.

These strengths enable Sodexo to look to the future with confidence and to maintain its investments, particularly in the development of its human resources and the reinforcement of its expertise.

4 of 14

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.08 0.55%
GOOG $695.81 0.50%
TSLA $234.18 0.80%
YHOO $35.97 -0.11%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs