- Revenues up +2.2%, and organic growth  of +2.5%
- On-site organic growth at +2.4% despite a tough economic environment in Remote Sites and a difficult situation in France.
- Resilient Benefits & Rewards Services activity at +4.7%.
- Excluding the impact of the Remote Sites activity, underlying growth was strong at +4%;
- +30 basis points improvement in operating margin excluding currency effect and before exceptional expenses  .
- Segmentation is enhancing new business opportunities highlighted by a major integrated services contract signed with Rio Tinto in Australia.
- Net profit +5.2% before non-recurring items  and currency effect.
- Proposed dividend  of 2.4 euros representing an increase of +9.1% and a €300 million share repurchase program (around 1.9% of capital) for cancellation purposes.
- Fiscal 2017 guidance of around 3% revenue organic growth and an 8% to 9% operating profit growth (excluding currency effect and exceptional expenses linked to the Adaptation and Simplification program).
- Medium-term objectives confirmed.
|(in millions of euro)||Fiscal 2016 (ended August 31, 2016)||Fiscal 2015 (ended August 31, 2015)||Change||Change excluding currency effect |
|Organic growth ||+2.5||%||+2.5||%|
|Operating profit before exceptional expenses ||1,203||1,143||+5.2||%||+8.2||%|
|Operating margin before exceptional expenses7||5.9||%||5.8||%||+10bps||+30bps|
|Net financial expense||(111||)||(107||)|
|Effective tax rate||33.7||%||31.1||%|
|Profit attributable to equity holders before non-recurring items , net of tax||721||700||+3.0||%||+5.2||%|
|Profit attributable to equity holders of the parent||637||700||-9.0||%||-6.8||%|
|Earnings per share -basic- (in euro)||4.21||4.60||-8.5||%|
|Proposed dividend per share (in euro)||2.40 ||2.20||+9.1||%|
|Net cash provided by operating activities||945||1,017|
|Gearing  (%)||11||%||9||%|
|Debt Ratio ||0.3||0.2|
- Fiscal 2016 Revenues amounted to 20.2 billion euro, up +2.2% on Fiscal 2015 and organic growth of +2.5%.
- Organic growth for the On-site Services activity was +2.4%, reflecting:
- North America up +3.8% with growth accelerating in both the Health Care and Seniors and Corporate, in which growth reached +7.1% as a result of new contracts such as Pfizer and United Airlines.
- A strong United Kingdom growth, up +11.3% benefitting from the contribution of the Rugby World Cup and the ramp-up of several large Justice and Corporate contracts signed in the previous year, as well as strong new business in Education.
- Continental Europe up +1.0%, due to some recovery in Corporate in most of the mature economies of the region, sustained growth in Germany, Russia and Eastern Europe. This performance was impacted by a difficult situation in France during the year but particularly in the fourth quarter, due to strikes, flooding and terrorism.
- The Rest of the World, down -3.2%, was impacted by a -16% decline in the Remote Sites activity, resulting from the difficulties of the mining and petroleum industries, and the regions dependent upon those industries, but with signs of stabilization in the second half. Excluding Remote Sites, organic growth was +7.0%, with signs of a pickup in Brazil in the last quarter of the fiscal year.
- Organic revenue growth in the Benefits and Rewards Services activity was +4.7%, impacted by severe competitive pressures in Brazil and record low interest rates in Europe. Issue volume was up +6.9% organically, reflecting a resilient performance in all regions, with strong face value growth in Brazil, and particularly strong development in Mexico, Chile and Turkey.
- Operating profit before exceptional expenses rose to 1,203 million euro, up +8.2% excluding the currency effect, due to a combination of increased productivity, SG&A control and the first results of the Adaptation and Simplification program which delivered 32 million euro of savings in its first year.
- Operating margin before exceptional expenses was up +10 basis points to 5.9%, and up +30 basis points excluding the currency effect.
- Exceptional expenses related to the adaptation and simplification measures amounted to 108 million euro in Fiscal 2016. The program is being implemented over the period from September 2015 to February 2017 at a total cost of around 200 million euro, with 100% annual payback in Fiscal 2018.
- Net profit before non-recurring items (net of taxes) totaled 721 million euro, up +5.2% excluding the currency effect. After deducting exceptional expenses and exceptional indemnities on the debt restructuring, net of taxes, reported net profit was 637 million euro, down -9.0%.
- Free cash flow generation more than compensated investments and the share buy-backs during the year, and the Group's financial position remained strong, with net debt  at 407 million euro, gearing at 11% and the net debt ratio at 0.3.
- In March, Sodexo joined the CAC 40 index, thus confirming the regularity of its performance.
- The Group's corporate responsibility engagement is recognized both internally, with employee engagement up 9 points compared to 2014 at 68% in the latest engagement survey. Added to this, Sodexo was named global Industry Leader for the 12 th consecutive year in the Dow Jones Sustainability index.
- Governance changes: