Sodexo: solid performance in Fiscal 2011
9/11/2011
Paris, November 9, 2011 - Sodexo (NYSE Euronext Paris FR 0000121220- OTC: SDXAY): At the Board of Directors meeting held November 7, 2011, chaired by Pierre Bellon, Sodexo CEO Michel Landel presented the company’s Fiscal 2011 performance.
Revenue growth of 5.4%
Sodexo’s consolidated revenue grew by 5.4% overall to 16 billion euro in Fiscal 2011, with organic growth of 5.2%.
This level of organic growth is double the figure achieved in Fiscal 2009 and Fiscal 2010, and exceeds the targets announced at the beginning of the year.
Organic growth accelerated during the course of the year, in particular as a result of the following:
the success of Sodexo’s offerings, and in particular its Facilities Management services, which in Fiscal 2006 represented only 18% of Group revenue, rising to 25% in Fiscal 2011. In fact Facilities Management services grew three times as fast as Foodservices in the course of the year.
Sodexo’s solid positions in the Rest of the World, and in particular its rapid development in the emerging markets.
Revenues for On-site Service Solutions increased + 5.2% to 15.3 billion euro, with organic growth increasing +5.1%.
Fiscal 2011 highlights by client segment included:
organic growth of 6.7% in Corporate, compared with 2% in Fiscal 2010; this reflects solid development for Sodexo in emerging markets and the significant impact of the phasing in of comprehensive service solutions contracts in the Justice, Defense and Corporate segments. Sodexo registered 17.9% organic growth in Justice, 6.5% in Defense and 15.9% in Remote Sites;
3.5% growth in Health Care and Seniors, resulting from an extension of the services supplied to existing clients in North America, offset by a short-term decline in outsourcing in Europe and the United Kingdom;
a 3.4% increase in Education resulting in particular from continuing growth in university enrollments in North America.
Most of the 6.9% organic growth in Motivation Solutions resulted from the excellent performance of Sodexo’s Latin American teams, with issue volume rising to 13.7 billion euro, up nearly 9% (excluding currency translation effects) over the prior year.
Sodexo’s key performance indicators were as follows:
the 94% level of client retention was comparable to the previous year;
the 4.3% growth on existing sites compares to 2% for the prior year. The acceleration results partially from the impact of rising food inflation;
the rate of development, or new contract wins, was 7.4%;
the employee retention rate reached 61.9% with a level of 83.6% for site managers (compared with 82.9% in the previous year);
the number of training hours provided was 4.8 million hours for all employees worldwide, an increase of more than 150,000 hours over the previous year;
85% of employees consider Sodexo to be a better employer than its competitors according to the most recent employee engagement survey, conducted in Fiscal 2010.
