Empresas y finanzas
Sodexho Announces an Increase in Organic Growth for First-Half Fiscal 2007 : + 8.2 %
SODEXHO ALLIANCE (Paris: SW) (NYSE:SDX), the leading global
provider of Food and Facilities Management services, today announced
consolidated revenues for first-half Fiscal 2007, ended February 28,
2007.
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Revenue by activity
In millions of First First
euro Half Half Organic Currency AcquisitionsTotal
Fiscal Fiscal growth(1) impact(2) change
2006 2007
----------------------------------------------------------------------
Food and
Facilities
Management
Services: 6,371 6,612 7.9% - 4.2% 0.1% 3.8 %
-- North America 2,919 2,890 7.6% - 8.1% - 0.5%- 1.0 %
-- Continental
Europe 2,111 2,236 4.9% 0.1% 0.9% 5.9 %
-- United Kingdom
and Ireland 663 720 6.9% 1.6% - 8.5 %
-- Rest of the
World 678 766 19.4% - 6.5% 0.1% 13.0%
----------------------------------------------------------------------
Service Vouchers
and Cards 178 211 20.5% - 4.5% 2.4% 18.4%
----------------------------------------------------------------------
Elimination of
intragroup
revenues (3) (4)
----------------------------------------------------------------------
TOTAL 6,546 6,819 8.2% - 4.2% 0.2% 4.2 %
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1) Organic growth: increase in revenues at constant consolidation
scope and exchange rates.
2) The current impact is (-4.2)%. However, Sodexho subsidiaries'
income and expenses are expressed in the same currency; hence,
contrary to exporting companies, currency variations carry no
operating risk.
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Commenting on the first-half revenues, Michel Landel, Chief
Executive Officer, said: "The acceleration in organic growth during
the first six months, resulting particularly from comparable unit
growth, is very encouraging. The scope of our global network and the
emphasis we have given over the past few years to constant innovation
in our quality of life services offers are significant sources of
competitive advantage. These lend support to our strategy and
Sodexho's leadership position in the fast-growing Facilities
Management market. Our good first-half performance leads us today to
anticipate organic growth exceeding 7% for Fiscal 2007, in line with
our medium term objective of annual average organic growth of 7%."
Organic Revenue Growth Analysis
(See table in Annex 2 and a selection of new clients in Annex 3)
Food and Facilities Management Services
-- North America: organic growth of 7.6% with a confirmation of a
return to growth in Business & Industry
-- Continental Europe: + 4.9%, with sustained momentum in
Healthcare and Seniors
-- United Kingdom and Ireland: + 6.9%, a result of strong
performance in Healthcare and Defense
-- Rest of the World: + 19.4%, with double-digit growth across
all geographies
In North America, Business and Industry (+ 5.8%) benefited from a
number of growth drivers: improvement in client retention, increase in
comparable unit growth. New sales activity accelerated, particularly
in Facilities Management. New contract wins include Pfizer, USAA
Insurance in Texas and the Houston Zoo.
Organic growth of 7.9% in Healthcare and Seniors reflects mainly a
solid increase in revenues on existing sites driven by continued
innovation in Facilities Management service offerings. New contract
wins include Moses Cone in North Carolina, Stanford University
Hospital in California and Tulsa Regional Hospital in Oklahoma.
Organic growth of 8.2% in Education was led by a number of
factors, including:
-- sustained demand for Facilities Management services,
especially for construction and renovation projects
-- strong comparable unit foodservice revenues for both schools
and universities, and
-- the positive effect of the improvement in client retention
achieved in fiscal 2006.
In North America, Sodexho also received several recognitions:
-- Sodexho received the Most Innovative Recruiting and Staffing
Initiative award from the International Quality and
Productivity Center for best practices in workforce
management.
-- Sodexho Canada was re-certified at the Gold level of
Progressive Aboriginal Relations for its continued commitment
to evolution and progress in aboriginal communities.
-- Sodexho was named a "Top Company for Latinas" by LATINA Style
Magazine for the fifth time and as a "Top Corporation for
Supplier Diversity" by Hispanic Trends.
In Continental Europe, the increase in revenues in Business &
Industry (+ 3.8%) reflected varying performance by countries:
-- good continued sales growth in Central Europe
-- strong growth of existing site sales, in Spain, for example
-- mixed performance in other countries (particularly, Italy and
the Netherlands), linked to the economic environment and the
focus by Sodexho's local teams on profitable contractual
terms.
Growth of 7.1 % in Healthcare and Seniors reflects the extensive
service offerings and high level of prior year sales. Among recent
contract wins are the University Hospital of Gand in Belgium and
Fourvieres Hospital in France.
The growth rate in Education (+ 5.5%) can be attributed to
improved client retention rates and continued selectivity,
particularly in public markets. New clients include the schools of
Dresden Fraichaud in Germany and Sigtuna and Atvidaberg in Sweden.
The period also saw recognition for the work of Sodexho's teams in
Continental Europe including:
-- In France, Sodexho received the 2006 Corporate Diversity Award
for Innovation.
-- In Belgium, Sodexho was the first company in its industry
sector given the right to use the government-sponsored
National Nutrition and Health Plan designation, an effort to
combat unhealthy eating habits.
-- In the Netherlands, all Sodexho's Facilities Management sites
received ISO 9001 certification as of January, 2007.
In the United Kingdom and Ireland, the growth of close to 7%
confirms Sodexho's return to growth. This increase results
particularly from Healthcare, Correctional Facilities and, to a lesser
extent, Defense. Private Finance Initiative (PFI) contracts have been
ramped up to normal operating levels. Sales activity in the leisure
market accelerated as illustrated by the contract recently awarded for
the World Scouts Jamboree.
Sodexho was recognized by the Edge Foundation, for providing
outstanding learning opportunities through its apprenticeship and
vocational programs.
In the Rest of the World, organic growth in Food and Facilities
Management services remained buoyant at 19.4%.
The strength of raw material prices contributed to good revenue
growth in Remote Sites, particularly in the Mideast, Africa and
Australia and, in the mining sector, in Latin America. Sodexho won new
contracts with PlusPetrol and Norsemont in Peru, Petrobras in
Argentina, Ensco in Qatar and Red Sea Housing in Saudia Arabia.
Finally, in China and India, Sodexho's expansion continues at a
rapid pace, particularly with an important contract in Facilities
Management and Service Vouchers and Cards with IBM.
Among the distinctions received by Sodexho:
-- Sodexho Mexico received a social responsibility award for the
third consecutive year for its emphasis on quality of life for
employees, business ethics, community involvement and
environmental protection.
-- In Brazil, Sodexho was recognized as a best employer by HR
professionals from 800 of Brazil's most important companies.
Service Vouchers and Cards
Organic growth: +20.5%
Fueled particularly by Latin America, especially Venezuela, issue
volume totaled 3.7 billion euros, up 18.4% (at constant consolidation
scope and exchange rates).
This remarkable organic revenue growth can be attributed
principally to:
-- innovative offers in several countries for year-end holiday
season gift vouchers
-- increases in voucher face values and the number of potential
beneficiaries in certain countries, such as Argentina and
Venezuela
-- continued strong sales force performance.
At the initiative of the Center for Public-Private Sector Studies,
Sodexho Service Vouchers and Cards received in France the first
Public-Private award for innovative service offers to meet the needs
of local authorities.
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-- Conference call
SODEXHO ALLIANCE will hold a conference call today to discuss
first-half revenues for Fiscal 2007. The call will begin at 8:30am
(Paris time). The call-in access number is +33 (0)1 72 26 01 65.
The press release and the slideshow will be available on the
internet by clicking on the link www.sodexho.com, under the
"Latest News" section, beginning at 7:00 am. To access the
rebroadcast of the conference call, please dial
+ 33 (0)1 72 28 01 39, code: 196024#.
-- Financial communications calendar
-- First half Fiscal 2007 results
Thursday, April 26, 2007. A presentation for analysts and
journalists will be held the same day.
-- Revenues for the first nine months of Fiscal 2007
Wednesday, July 4, 2007. The announcement will be followed by a
conference call.
The above dates are provided for information only and are
subject to change.
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-- About Sodexho Alliance
SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the leading
global provider of Food and Facilities Management services, with more
than 332,000 employees on 28,300 sites in 80 countries. For Fiscal
2006, which closed August 31, 2006, SODEXHO ALLIANCE had sales of 12.8
billion euro. Listed on Euronext Paris and on the New York Stock
Exchange, the Group's current market capitalization is 8.7 billion
euro.
This press release contains 'forward-looking statements' within
the meaning of the United States Private Securities Litigation Reform
Act of 1995. These include, but are not limited to, statements
regarding anticipated future events and financial performance with
respect to our operations. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical
or current facts. They often include words like 'believe,' 'expect,'
'anticipate,' 'estimated,' 'project,' 'plan,' 'pro forma,' and
'intend' or future or conditional verbs such as 'will,' 'would,' or
'may.' Factors that could cause actual results to differ materially
from expected results include, but are not limited to: those set forth
in our Registration Statement on Form 20-F, as filed with the
Securities and Exchange Commission (SEC), the competitive environment
in which we operate, changes in general economic conditions and
changes in the French, American and/or global financial and/or capital
markets. Forward-looking statements represent management's views as of
the date they are made, and we assume no obligation to update any
forward-looking statements for actual events occurring after that
date. You are cautioned not to place undue reliance on our
forward-looking statements.
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Annex 1: Consolidated Revenues
In thousands of euro
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2005/2006 2006/2007
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FIRST QUARTER (Sept. to Nov.)
. Food and management services
- North America 1 527 658 1 541 151
- Continental Europe 1 076 643 1 151 281
- United Kingdom and Ireland 332 971 365 713
- Rest of World 340 191 396 810
. Service Vouchers and Cards 82 525 98 321
. Elimination of intragroup
Revenues -1 758 -1 765
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3 358 230 3 551 511
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SECOND QUARTER (Dec. to Feb.)
. Food and management services
- North America 1 390 868 1 348 714
- Continental Europe 1 034 727 1 084 770
- United Kingdom and Ireland 330 433 354 209
- Rest of World 337 770 369 136
. Service Vouchers and Cards 95 812 112 899
. Elimination of intragroup
Revenues - 1 524 -2 106
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3 188 086 3 267 622
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% Variations
at at
current constant
exchangeexchange
. Food and management services rates rates
-----------------
- North America 2 918 526 2 889 865 -1.0% 7.1%
- Continental Europe 2 111 370 2 236 051 5.9% 5.8%
- United Kingdom and Ireland 663 404 719 922 8.5% 6.9%
- Rest of World 677 961 765 946 13.0% 19.5%
. Service Vouchers and Cards 178 337 211 220 18.4% 22.9%
. Elimination of intragroup
Revenues - 3 282 -3 871
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TOTAL 6 546 316 6 819 133 4.2% 8.4%
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Growth breakdown :
- Organic growth : 8.2 %
- Acquisitions (*) : 0.2 %
- Currency effect : -4.2 %
(*) net of divestitures
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Annex 2: Food and Facilities Management services revenue by segment
Consolidated Group
In millions of euro First half First half Organic
Fiscal 2006 Fiscal 2007 Growth(1)
----------------------------------------------------------------------
-- Business & Industry 3,008 3,184 8.2%
-- Healthcare 1,619 1,660 7.8%
-- Education 1,744 1,768 7.3%
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TOTAL 6,371 6,612 7.9%
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North America
In millions of euro First half First half Organic
Fiscal 2006 Fiscal 2007 Growth(1)
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-- Business & Industry 677 649 5.8%
-- Healthcare 997 995 7.9%
-- Education 1,245 1,246 8.2%
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TOTAL 2,919 2,890 7.6%
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Continental Europe
In millions of euro First half First half Organic
Fiscal 2006 Fiscal 2007 Growth(1)
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-- Business & Industry 1,239 1,308 3.8%
-- Healthcare 481 516 7.1%
-- Education 391 412 5.5%
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TOTAL 2,111 2,236 4.9%
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United Kingdom and Ireland
In millions of euro First half First half Organic
Fiscal 2006 Fiscal 2007 Growth(1)
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-- Business & Industry 476 522 8.1%
-- Healthcare 106 119 9.6%
-- Education 81 79 -3.5%
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TOTAL 663 720 6.9%
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(1) Organic growth: increase in revenues at constant scope of
consolidation and exchange rates.
Annex 3: Selection of new clients
Foodservices and Facilities Management
North America
Business & Industry
USAA Insurance, Texas (foodservices), Houston Zoo, Houston, Texas
(1.4 million visitors, foodservices); American Family, multiple sites
(4,200 employees, foodservices and facilities management); Cafe St.
Barts, St. Bartholomew's Church, New York (1,000 customers per day,
foodservices, special events)
Healthcare and Seniors
Stanford University Medical Center, Palo Alto, California, (430
beds, plant operations and maintenance); Moses Cone Health Center,
Greensboro, North Carolina, (535 beds, foodservices and facilities
management); Nova Gold, British Columbia, Canada, (1,000 beds,
foodservices and facilities management)
Education
Stevens Institute of Technology, Hoboken, New Jersey, (4,500
students, foodservices); Recovery School District, New Orleans,
Louisiana, (8,500 students, foodservices and facilities management);
Blue Springs School District, Blue Spring, Missouri,(14,000 students,
foodservices)
Continental Europe
Leisure
Eiffel Tower, France (6 million visitors annually, foodservices),
Business & Industry
KLM, Netherlands (foodservices and facilities management), BMW
Bistro, Belgium (restaurant); C.E.A Biii, France (2,300 employees,
foodservices)
Healthcare and Seniors
UZ Gent, Belgium (1,050 beds, foodservices); Hopital de Fourviere,
France (265 beds, foodservices) Leonardo da Vinci hospitals, France,
(400 beds, foodservices and facilities management)
Education
Dresden Fraichaud CCS, Germany (20,000 meals/day, foodservices);
Schools in Atvidaberg, Sweden (2,000 students, foodservices)
United Kingdom and Ireland
Prestige
World Scouts Jamboree, Chelmsford, (10 days, 40,000 people,
foodservices);
Education
Abingdon School, Oxford, (800 students, foodservices and
facilities management); University of Nottingham, Nottingham, (1,000
employees, foodservices); University of Bedfordshire, Luton, (12,500
students, foodservices)
Rest of the World
Business & Industry
IBM, India (foodservices, facilities management and Service
Vouchers and Cards); Johnson Health Tech. Co.,Ltd., Shanghai, China
(5,000 employees, foodservices); Suzhou Industrial Park Xinhai School,
Suzhou, China, (2,400 employees, foodservices); Henkel (China) Co.,
Ltd., Shanghai, China, (650 employees, foodservices); Ensco, Quatar,
(100 employees, foodservices and facilities management); Caroil,
Congo, (100 people, facilities management); Red Sea Housing, Saudia
Arabia, (4 camps, 400 people, foodservices and facilities management);
PlusPetrol, Peru (facilities management); Embraer Neiva, Brazil,
(2,500 meals/day, foodservices)
Service Vouchers and Cards
Argentina: Aceitera General Deheza (Food Pass, 1,600
beneficiaries): Coca-Cola (Food Pass, 2,160 beneficiaries); Brazil:
Banese (Food Pass, 1,330 beneficiaries); Secretaria Municipal de Saude
(Gift Pass, 12,770 vouchers); Chile: BBVA (Mobility Pass, 3,000
vouchers); Royal & SunAlliance (Meal Pass, 200 beneficiaries);
Colombia: Fondo Nacional del Ahorro (Mobility Pass, 130 vouchers);
Castrol (Gift Pass, 1,200 vouchers); Mexico: Asamblea Legislativa del
Distrito Federal (Meal Pass, 700 beneficiaries); Banco de Mexico (Meal
Pass); Venezuela: Alcaldia Municipal del Distrito Sotillo (Food Pass,
830 beneficiaries); Cargill (Food Pass, 670 beneficiaries)
India: Air Liquide (Gift Pass, 240 vouchers); Calyon (Meal Pass,
150 beneficiaries); Prudential (Meal Pass, 630 beneficiaries)
Bulgaria: Petrol (Food Pass, 2,900 beneficiaries); Societe
Generale (Food Pass, 1,200 beneficiaries); Czech Republic: Telefonica
(Holiday Pass); E.ON (Flexi Pass); Poland: ThyssenKrupp (Gift Pass,
1,660 vouchers); Romania: University of Pitesti (Food Pass, 780
beneficiaries); Slovakia: Telefonica (Meal Pass, 120 beneficiaries)
France: Mainguy (Meal Pass, 1,200 beneficiaries; Areva (CESU);
Total (CESU, 1,200 beneficiaries); Region Basse-Normandie (Assistance
Pass, 55,000 beneficiaries); Region Auvergne (Assistance Pass, 46,000
beneficiaries); Spain: Altran (Meal Pass, 120 beneficiaries); Caixa
(Assistance Pass, 100,000 families) ; UK: Citigroup (Education Pass)