Sodexo: Solid Revenue And Profit Growth In Fiscal 2012
French company Lenôtre, acquired at the end of September 2011, contributed 1.6% to overall revenue growth. The process of integrating the Lenôtre teams’ prestigious savoir-faire into Sodexo’s range of foodservices is going well, although the current economic environment is weighing on the catering business, which experienced slower growth than in Fiscal 2011.
In Corporate, organic growth was + 2.2% compared to + 4.4% the previous year.
This performance was marked by contrasting situations:
- On the one hand, the effectiveness of the Group’s strategic positioning and integrated services offers helped to drive business development, contributing to its success with major international groups such as Unilever, Eli Lilly, Alcatel-Lucent and AstraZeneca in several countries, as well as winning contracts such as Deutsche Telekom in Germany, and Gazprom in Russia.
- At the same time, there was a pronounced decline in on-site activity during the latter part of the fiscal year. Efforts by clients to find additional cost savings and reduce headcount, along with lower consumer spending, weighed increasingly on revenue growth in several countries, particularly France and the Netherlands.
In Health Care and Seniors, organic revenue growth was + 1.4%, reflecting modest business development and an increasingly selective approach to new business in Southern Europe.Business wins included Ziekenhuis Gelderse Vallei in the Netherlands, SARquavitae in Spain and Assistance Publique-Hôpitaux de Paris (CHU Louis Mourier and Hôpital Antoine Béclère) and Institut National Marcel Rivière in France. Education revenues remained flat compared with the previous year, following the Nice city authorities’ decision to return the city’s schools to self-operation. During the fiscal year, Sodexo signed a number of new contracts, for example with Utrecht University in the Netherlands, Universidad Politècnica de Catalunya in Spain and several public schools in France such as those in Saint-Cloud, Garges-lès-Gonesse and Livry-Gargan in the Paris suburbs.
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