Empresas y finanzas
Sodexho Announces New Acceleration in Organic Revenue Growth for Fiscal 2007 across All Segments: + 8.4%
Regulatory News:
SODEXHO ALLIANCE (PARIS:SW) (OTCBB:SDXAY), the global leader in
most of its activities, today announced consolidated revenue for
Fiscal 2007, which ended August 31, 2007.
Revenue by activity
-0-
*T
In millions Fiscal Fiscal Organic Currency Acquisitions Total
of euro 2006 2007 growth(1) impact(2) change
------------- ------ ------ ---------- ---------- ------------ -------
Food and
Facilities
Management
Services:
-- North
America 5,479 5,492 + 8.8% - 7.8% - 0.8% + 0.2%
--
Continental
Europe 4,148 4,388 + 5.1% + 0.1% + 0.5% + 5.8%
-- United
Kingdom and
Ireland 1,370 1,475 + 6.1% + 1.6% - + 7.7%
-- Rest of
the World 1,434 1,591 + 15.3% - 4.6% + 0.2% + 10.9%
TOTAL 12,431 12,946 + 8.1% - 3.8% - 0.16% + 4.1%
------------- ------ ------ ---------- ---------- ------------ -------
Service
Vouchers and
Cards 373 447 + 20.1% - 2.5% + 2.1% + 19.7%
------------- ------ ------ ---------- ---------- ------------ -------
Elimination
of
intragroup
revenue (6) (8)
------------- ------ ------ ---------- ---------- ------------ -------
TOTAL 12,798 13,385 + 8.4% - 3.7% - 0.1% + 4.6%
------------- ------ ------ ---------- ---------- ------------ -------
*T
1) Organic growth: increase in revenue at constant consolidation
scope and exchange rates.
2) The currency impact is a negative 3.7%. However, Sodexho
subsidiaries' income and expenses are expressed in the same currency;
hence, contrary to exporting companies, currency variations carry no
operating risk.
Commenting on Sodexho's Fiscal 2007 revenue, Sodexho CEO Michel
Landel said:
"For the second consecutive year, organic growth improved two
percentage points over the prior year. This excellent performance
demonstrates acceleration in all our client segments. Client retention
was close to 94%; comparable unit growth - or revenue growth on
existing sites - was around 5%; and the business development rate,
representing new contract awards, remained high at approximately 9%.
As a result, operating profit progression for Fiscal 2007
(excluding currency impact) should be in the range of 12-15%. Our
productivity actions to more effectively manage food and labor costs
have enabled us to curb current inflationary pressures. At the same
time, we have intensified our investments in human resources,
information technology and communications.
I remain fully confident that Sodexho will achieve its Ambition
2015 of 7% average annual compound revenue growth."
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: + 8.8%, with robust performance in all client
segments
-- Continental Europe: + 5.1%, led by continuing strength in
Healthcare and Seniors
-- United Kingdom and Ireland: + 6.1%, confirming a return to
revenue growth
-- Rest of the World: + 15.3%, representing double-digit growth
in Latin America, Asia, Australia and Remote Sites.
In North America, the comparison between Fiscal 2007 revenue and
the prior year reflects the effect of a 53rd week of activity in
Fiscal 2007 as Sodexho operates on a 52/53 week calendar as is
consistent with industry practice in North America. The impact of the
53rd week on North America Fiscal 2007 revenue is estimated at around
1.2%. However, with the beginning of the university academic year at
the end of the fiscal year, the impact on operating profit of this
additional week is not significant.
The Business & Industry segment (+ 8.9%) benefited from numerous
favorable factors:
-- stronger client retention
-- improved business development in both Foodservices and
Facilities Management. Several new contracts were awarded late
in the fiscal year, including Genzyme in Massachusetts, the
California State Auto Association in Glendale, California, and
Franklin Templeton Investment Services in Florida
-- the start-up in the last months of the fiscal year of a large
mining sector contract in Canada with Nova Gold
Organic growth of + 10.1% in the Healthcare and Seniors segments
was driven by:
-- excellent client retention, and
-- revenue growth on existing sites, a result of extensive
offerings well-adapted to the expectations of clients,
patients and visitors as well as the full ramp-up of contracts
won in previous years (such as Memorial Hermann Healthcare
System and New York City Health & Hospital Corporation).
Recent new contracts include York Central Hospital in Ontario,
Canada, St. Anthony Hospital in Oklahoma and Penn Presbyterian Medical
Center in Pennsylvania.
With a + 7.6% increase in revenue, Education continued to benefit
from increased student enrollment in universities, strong client
retention and the demand for Facilities Management services.
Several major contracts were recently signed, notably with the
University of Illinois in Chicago, the University of Tennessee, New
Jersey's Drew University and California's San Jose School District.
In North America, Sodexho received several awards:
-- Named one of the "15 Best Companies for Workforce Diversity"
by Black Enterprise(R) magazine, one of the nation's leading
business publications.
-- Selected as Community Partner of the Month in August by FEED
NOVA SCOTIA in Canada for STOP Hunger's impact on the lives of
children.
-- Honored by the U.S. Defense Department with the Pro Patria
Award for its personnel policies making it easier for
employees to serve as National Guard members and reservists.
-- Won three Best Concept awards from Food Management Magazine
for exceptional achievement and innovative thinking for its
STOP Hunger/Feeding our Future program, its Circle of Customer
Excellence training program and its Sweet Shots menu concept.
In Continental Europe, Business & Industry reported + 4.3% growth
from:
-- continued strong growth in Spain and Central Europe and in the
Defense segment in Sweden for both Food and Facilities
Management services
-- more modest performance in countries such as Italy and the
Netherlands, linked to the economic environment and the
rigorous application of a profitable growth approach to sales
-- the ramping up of two significant contracts won by the Group,
one for Facilities Management services for KLM at Schiphol
airport in the Netherlands and the other for Foodservices at
the Eiffel Tower in Paris. Important new contracts were won
with Pan Auto in Russia, the Eksjo Garrison in Sweden and
Galeries Lafayette and BHV in France.
Growth of + 6.6% in the Healthcare and Seniors segments reflects:
-- the breadth of the services offering
-- strong business development during the previous year
Recent new contracts awarded include the "12th of October"
Hospital in Madrid, Spain, and Maison des Services Canceropole in
Toulouse, France.
Growth in Education of + 6.0% reflects improvements in client
retention. However Sodexho remains selective in development in the
public sector. New clients include the Technical University of Delft
and Avans Hogeschool in the Netherlands.
Sodexho teams in Continental Europe saw their efforts rewarded
during the year:
-- In Spain, ISO 9001:2000 certification was renewed at all 318
sites where Sodexho provides Foodservices.
-- In Poland, Sodexho was awarded the "White Lily" certificate
for food preparation meeting the highest hygienic and food
safety standards.
In the United Kingdom and Ireland, revenue rose by + 6.1%,
providing further confirmation of the return to growth in Healthcare
and Seniors and in Defense.
The + 6.8% growth in Business & Industry was led by:
-- relatively stable demand at corporate clients
-- the full-year impact of contracts awarded in the prior year in
Defense such as Catterick Garrison and the Royal Navy Base
Support Contract
-- robust activity levels in leisure and events during the summer
months, for example at the Ascot Racecourse and the World
Scout Jamboree at Chelmsford.
Contracts recently awarded include, Thales Sapphire in Crawley,
Astrium Cleaning in Stevenage and Portsmouth and eBay and Paypal
Europe Services in Dublin. In Education, new contracts were won with
Joseph Swan School in Gateshead and Taverham School in Norwich.
Healthcare and Seniors registered organic growth of + 7.9%, driven
by:
-- improved client retention
-- the full ramp-up of contracts opened in 2006, notably, recent
PFI contracts which attained their normal activity levels
-- accelerated new business development with the signing of
important contracts for Facilities Management with the North
Staffordshire hospitals and for Foodservices with Nuffield
hospitals
In the UK and Ireland, for the second year in a row, Sodexho teams
were attributed with the BUPA Healthy Communities Big Tick award from
Scottish Business in the Community for efforts to help students at
inner city schools.
In the Rest of the World, organic growth in Food and Facilities
Management services remained particularly robust at + 15.3%, despite
the completion in Remote Sites of certain infrastructure projects
towards the end of the fiscal year..
Continued high raw material prices contributed to revenue growth
in the Middle East, Africa and Australia, and in the mining sector in
Latin America.
Sodexho recently won a number of new contracts, such as Glencore
Prodeco and Hospital Universitario San Ignacio in Colombia, Sundown
and Fafen-Petrobras in Brazil, Dubai World in the United Arab Emirates
and Dodsal in Oman.
In China and India, expansion continued at a rapid pace both in
Foodservices and Facilities Management. Among recent contract signings
in China were Dow Chemical R&D Center, Wuxi Hitech Incubator and
Development Co. and Accenture. In India, new contracts included FLAME,
the American School of Bombay, Cisco Systems, Jindal Steel and DLF
Builders.
Sodexho also received awards in several regions including in New
Caledonia at the Goro Nickel Project where Sodexho was recognized for
its contribution to the significant milestone reached of 1,000,000
hours worked with no lost time injuries.
Service Vouchers and Cards
Organic growth: + 20.1%
Issue volume totaled 7.3 billion euro (up + 18.5% at constant
consolidation scope and exchange rates) fueled mainly by Latin
America, especially Venezuela.
Organic growth of 20.1% reflected:
-- Increases in voucher face value and in the number of potential
beneficiaries in countries such as Venezuela, Belgium and
France
-- Success and continued innovation by the sales teams, who drove
strong development, notably in Spain, a number of Latin
American countries and Central Europe
Principal contracts won at the end of the year included the
Customs headquarters in Hungary (Food Pass), Coca-Cola in Poland (Gift
Pass), Termoelectrica (Food Pass) and the University Hospital of
Bucharest (Food Pass) in Romania.
Acquisitions and reinforcement of Sodexho's worldwide position
On October 2, 2007, Sodexho completed the acquisition of 100% of
Tir Groupe's gift voucher business for a total of 143 million euro.
With issue volume of around 300 million euro, Tir Groupe is a leading
issuer of gift vouchers in France to both companies and local
authorities.
With the acquisitions announced and in progress since September
2006 (Tir Groupe in France, Vivaboxes in Belgium and VR in Brazil),
Sodexho continues to reinforce its worldwide position in Service
Vouchers and Cards.
-- Conference call
SODEXHO ALLIANCE will hold a conference call today to discuss
Fiscal 2007 revenue. The call will begin at 8:30 am (Paris time). The
call-in access number is +33 (0)1 72 28 25 82. 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 49, code: 205401 #.
-- Financial communications calendar
-- Fiscal 2007 results
Thursday, November 15, 2007 at 9:00 a.m.: presentation for
analysts and journalists.
-- First Quarter 2008 revenue
Wednesday, January 9, 2008. The announcement will be followed by a
conference call.
The above dates are provided for information only and are subject
to change.
-- About Sodexho Alliance
SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the global
leader in most of its activities, employing more than 332,000
employees on 28,300 sites in 80 countries as of August 31, 2006.
Listed on Euronext Paris, the Group's current market capitalization is
7.9 billion euro.
This press release contains statements that may be considered as
forward-looking statements and as such may not relate strictly to
historical or current facts. These statements represent management's
views as of the date they are made and we assume no obligation to
update them. You are cautioned not to place undue reliance on our
forward looking statements.
Annex 1: Comparison of Consolidated Revenue
-0-
*T
FY 2006 FY 2007
FIRST QUARTER (Sept. to Nov.)
. Food and Facilities
Management
- 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
Revenue -1,758 -1,765
---------- ----------
3,358,230 3,551,511
---------- ----------
SECOND QUARTER (Dec. to Feb.)
. Food and Facilities
Management
- 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
Revenue -1,524 -2,106
---------- ----------
3,188,086 3,267,622
---------- ----------
THIRD QUARTER (March to May)
. Food and Facilities
Management
- North America 1,441,063 1,420,978
- Continental
Europe 1,082,213 1,121,213
- United Kingdom
and Ireland 332,960 344,416
- Rest of World 377,757 408,950
. Service Vouchers and Cards 94,505 111,953
. Elimination of intragroup
Revenue -1,780 -1,992
---------- ----------
3,326,718 3,405,518
---------- ----------
FOURTH QUARTER (June to
August)
. Food and Facilities
Management
- North America 1,119,871 1,181,529
- Continental
Europe 954,624 1,030,597
- United Kingdom
and Ireland 373 371 410 701
- Rest of World 378,429 415,819
. Service Vouchers and Cards 100,360 123,559
. Elimination of intragroup
Revenue -1,333 -2,156
---------- ----------
2,925,322 3,160,049
---------- ---------- ------------------
% Variations
------------------
at at
TOTAL FISCAL YEAR current constant
exchange exchange
rates rates
-------- ---------
. Food and Facilities
Management
- North America 5,479,460 5,492,372 0.2% 8.0%
- Continental
Europe 4,148,207 4,387,861 5.8% 5.6%
- United Kingdom
and Ireland 1,369,735 1,475,039 7.7% 6.1%
- Rest of World 1,434,147 1,590,715 10.9% 15.6%
. Service Vouchers and Cards 373,202 446,732 19.7% 22.3%
. Elimination of intragroup
Revenue -6,395 -8,019
---------- ---------- -------- ---------
TOTAL 12,798,356 13,384,700 4.6% 8.3%
---------- ---------- -------- ---------
This growth is made up as
follows :
- Organic growth 8.4%
- Acquisitions (*) -0.1%
- Currency effect - 3.7%
(*) net of disposals
*T
Annex 2: Food and Facilities Management services revenue by
segment
-0-
*T
Consolidated Group
In millions of euro Fiscal Fiscal Organic
2007 2006 growth
(1)
----------------------------------------------------------------------
-- Business & Industry 6,480 6,147 8.1 %
-- Healthcare and Seniors 3,398 3,261 9.0 %
-- Education 3,068 3,023 7.0 %
----------------------------------------------------------------------
TOTAL 12,946 12,421 8.1 %
----------------------------------------------------------------------
*T
-0-
*T
North America
In millions of euro Fiscal Fiscal Organic
2007 2006 growth
(1)
----------------------------------------------------------------------
-- Business & Industry 1,342 1,367 8.9 %
-- Healthcare and Seniors 2,038 1,995 10.1 %
-- Education 2,112 2,117 7.6 %
----------------------------------------------------------------------
TOTAL 5,492 5,479 8.8 %
----------------------------------------------------------------------
*T
-0-
*T
Continental Europe
In millions of euro Fiscal Fiscal Organic
2007 2006 growth
(1)
----------------------------------------------------------------------
-- Business & Industry 2,597 2,468 4.3 %
-- Healthcare and Seniors 1,056 986 6.6 %
-- Education 735 694 6.0 %
----------------------------------------------------------------------
TOTAL 4,388 4,148 5.1 %
----------------------------------------------------------------------
*T
-0-
*T
United Kingdom and Ireland
In millions of euro Fiscal Fiscal Organic
2007 2006 growth
(1)
----------------------------------------------------------------------
-- Business & Industry 1,085 1,002 6.8 %
-- Healthcare and Seniors 240 219 7.9 %
-- Education 150 149 -1.2 %
----------------------------------------------------------------------
TOTAL 1,475 1,370 6.1 %
----------------------------------------------------------------------
*T
-0-
*T
Rest of the World
In millions of euro Fiscal Fiscal Organic
2007 2006 growth
(1)
----------------------------------------------------------------------
-- Business & Industry 1,456 1,310 +15.5 %
-- Healthcare and Seniors 64 61 +9.6 %
-- Education 71 63 + 18.5 %
----------------------------------------------------------------------
TOTAL 1,591 1.434 +15.3 %
----------------------------------------------------------------------
*T
(1) Organic growth: increase in revenue at constant consolidation
scope and exchange rates.
Annex 3: Selection of new clients
Foodservices & Facilities Management
North America
Business & Industry
Genzyme, three sites (860 employees, foodservices, vending);
California State Auto Association, Glendale, California (530
employees, foodservices); Franklin Templeton Investment Services, St
Petersburg, Florida (1,400 employees, foodservices); Cox
Communications, Rancho Santa Margarita, California (900 employees,
foodservices) ; HSBC, Sioux Falls, South Dakota (1,000 employees,
foodservices, vending); State Street Bank-Adams Bldg, nine sites,
(13,000 employees, vending); Wyeth BioPharm, Andover, Massachusetts
(2,500 employees, vending); Suffolk University, Boston, Massachusetts
(800 employees and 8,300 students, vending)
Healthcare and Seniors
McAllen Medical Center, McAllen, Texas (two sites, 660 beds);
Lawrence Hospitals, Bronxville, New York (280 beds, facilities
management, food and nutrition services, patient transportation);
Pottstown Memorial Medical Center, Pottstown, Pennsylvania (220 beds);
Memorial Hospital, Chattanooga, Tennessee (370 beds, foodservices and
nutrition); Covenant Retirement Community, 15 sites (5,300 residents);
York Central Hospital, Canada (420 beds, foodservices and facilities
management); St. Anthony Hospital, Oklahoma City, Oklahoma, (400
beds); Penn Presbyterian Medical Center Philadelphia, Pennsylvania,
(270 beds)
Education
University of Tennessee, Knoxville, Tennessee (stadium management,
concessions) ; University of Alaska, Anchorage, Alaska (19,750
students, dining) ; Weber State University, Ogden, Utah (18,820
students, dining) ; Drew University, Madison, New Jersey (2,520
students, dining) ; Batavia United School District, Batavia, Illinois
(6,020 students) ; Beecher Comm. United School District, Beecher,
Illinois (890 students) ; Irvington Public School District, Irvington,
New Jersey (7,910 students) ; Jamestown School District, Jamestown,
Rhode Island (580 students) ; Wauwatosa School District, Wisconsin
(7,100 students) ; Warren County Career Center, Lebanon, Ohio (700
students) ; San Jose Unified School District, San Jose, California
(31,130 students) ; Asbury Park School District, Asbury Park, New
Jersey (3,350 students) ; Jefferson School District, Monroe, Michigan
(2,900 students); University of Illinois, Chicago, Chicago, Illinois,
(foodservices, 25,700 students)
Continental Europe
Business & Industry
Galeries Lafayette HQ, France (5,000 meals, foodservices); BHV,
France (1,000 meals, foodservices); RIE la Maison des services
Canceropole, France (500 meals, foodservices); Societe Generale HQ,
France (1 000 meals, foodservices); Rijkswaterstaat Westraven,
Netherlands (2,000 meals, foodservices); Pan Auto, Russia (facilities
management);
Defense
Garrison at Eksjo, Sweden (foodservices)
Healthcare and Seniors
Cafeteria Hospital 12 October, Spain (1 300 meals, foodservices);
Stichting Cordan, Netherlands (300 meals, foodservices)
Education
Mairie de Troyes, France (2,080 meals, foodservices); TU Delft,
Netherlands (19,500 meals, foodservices); Avans Hogeschool,
Netherlands (19,800 meals, foodservices)
UK & Ireland
Business & Industry
ING Real Estate, London (200 employees, foodservices); Bear
Stearns, London (850 employees, foodservices); Northern Way
Properties, Manchester (1,000 employees, facilities management); Black
& Veatch, Immingham (foodservices and facilities management) ;
Astrium, two sites (3,400 employees, facilities management); Ebay,
Dublin (350 employees, foodservices and facilities management); PayPal
Europe Services, Dublin (850 employees, foodservices and facilities
management); Thales Sapphire, Crawley (2,500 employees, foodservices);
Defense
British Forces, Cyprus (10,000 customers, facilities management);
Healthcare
North Staffordshire PFI, two hospitals (facilities management and
technical maintenance)
Education
Truro High School for Girls, Truro (520 students, foodservices);
Harris City College, London (210 students, foodservices); London
Borough of Richmond, 39 schools (11,700 students, foodservices);
Joseph Swan School, Gateshead, (foodservices, 1,200 students);
Taverham High School, Norwich, (foodservices, 860 students)
Rest of the World
Business & Industry
Sundown, Brazil (3,000 customers, foodservices); Total Access
Communication, Thailand (1,000 employees, foodservices); TelstraClear
Limited, New Zealand (1,200 employees); Nestle, Australia, two sites
(900 employees, foodservices); Dow Chemical R&D Center, China (1,600
employees, foodservices); Shanghai Caohejing Export &Processing Zone
Administration Committee, China (2,000 employees, foodservices) ; Wuxi
Hi-tech Incubator and development Co., Ltd., China (2 000 employees,
foodservices); Effem Foods Co.Ltd. -Snack site, China (1,800
employees, foodservices); Accenture, China, three sites (320
employees, security); FLAME, Pune, India, (1,000 meals, foodservices);
Cisco Systems, Bangalore, India, (1,200 meals, foodservices); Jindal
Steel, Bellary, India (facilities management); DLF Builders, Delhi,
India (facilities management)
Healthcare and Seniors
Hospital Universitario San Ignacio, Colombia (290 beds,
foodservices); Samitivej Srinakarin Hospital, Thailand (400 beds,
laundry); Qingheyuan Cherish-yearn Seniors Home, China (2,000
employees, foodservices); Qingdao City Chengyang People's Hospital,
China (800 beds, foodservices);
Education
American International School, China (400 employees, security);
American School of Bombay, Mumbai, India, (600 meals, foodservices);
Singapore American School, Singapore (foodservices)
Remote Sites
Glencore Prodeco, Colombia, four sites (2,000 customers,
foodservices, hospitality, cleaning and gardening); Yagana - Sipetrol,
Argentina (foodservices); CDB, Peru (450 customers, foodservices and
facilities management); Fafen - Petrobras, Brazil (1,100 customers,
foodservices); Dubai World, United Arab Emirates (2,400 employees,
foodservices); Schlumberger, Nigeria (foodservices and facilities
management) ; Dodsal, Oman (1,300 employees, foodservices, cleaning
and laundry);
Service Vouchers and Cards
CENTRAL EUROPE:
Hungary: The National Headquarter of the Customs Office (Food
Pass, 7,000 beneficiaries)
Poland: Coca-Cola (Gift Pass, 3,200 vouchers); ICI (Motivation
Pass, 200 vouchers); Poludniowy Koncern Energetyczny (Gift Pass)
Romania: Termoelectrica (Food Pass, 1,790 beneficiaries); Hospital
University of Bucharest (Food Pass, 2,900 beneficiaries)
WESTERN EUROPE:
Belgium: Degussa (Gift Pass, 1,000 beneficiaries); GE (Meal Pass,
420 beneficiaries)
France: Lancaster (Meal Pass, 250 beneficiaries); URSAFF (Meal
Pass, 300 beneficiaries)
UK: News International Group (Education Pass, 100 beneficiaries)
LATIN AMERICA:
Argentina: Gasnor (Food and Meal Pass, 280 beneficiaries)
Brazil: Fidelity National Financial (Meal and Mobility Pass, 3,400
beneficiaries); Organizacion Brasileiro de prestaciones de servicios
(Food Pass, 1 280 beneficiaries); Public Ministry of the State
Espirito (Food Pass, 310 beneficiaries)
Mexico: Nycomed (Food Pass, 130 beneficiaries)
Peru: TNT (Food Pass, 120 beneficiaries)
ASIA:
China: Microsoft (Meal Pass)
India: Capgemini (Meal Pass, 540 beneficiaries); RBS (Meal Pass,
400 beneficiaries)