OREANDA-NEWS. Sodexo, world leader in Quality of Life Services, today reports its nine-month year to date Fiscal 2016 revenues, ending May 31, 2016.

Fiscal 2016 nine months Revenues:

Revenues
(in millions of euro)		 9 months
Fiscal 2016		 9 months
Fiscal 2015		 Organic
growth		 Acquisitions Currency
effect		 Total
change
North America 6,844 6,204 +4.0% +0.1% +6.2% +10.3%
Continental Europe 4,399 4,367 +1.8% -0.4% -0.7% +0.7%
Rest of the World 2,339 2,647 -3.9% +0.3% -8.0% -11.6%
United Kingdom and Ireland 1,555 1,293 +18.1% +1.2% +1.0% +20.3%
Total On-site Services 15,137 14,511 +3.2% +0.1% +1.0% +4.3%
Total Benefits and Rewards Services 576 636 +5.7% +0.2% -15.3% -9.4%
Elimination of intra-group sales salesrevenues (4) (4)        
TOTAL GROUP 15,709 15,143 +3.3% +0.1% +0.3% +3.7%

 

Highlights of the period
  • Revenues for the first nine months of Fiscal 2016 amounted to 15.7 billion euro representing an increase of +3.7% compared to the year-earlier period. Organic growth was +3.3%, including the contribution from the Rugby World Cup contract in the first quarter, or +2.5% excluding this impact.
  • Organic growth of On-site Services was +3.2%, reflecting:
    • Growth in North America continuing to improve, with revenues up +4% on an organic basis, driven by strong performance in Health Care and Corporate;
    • Small but regular improvement in organic growth in Continental Europe, up +1.8%, helped by a couple of extra working days in certain countries in May;
    • Revenue growth of 18.1% in the UK as a result of the positive impact of the Rugby World Cup contract and the ramp-up of the large new contracts signed last year, and which are now fully in the comparable base;
    • Impact, in the Rest of the World region, of the severe slowdown in the Remote Sites activity (mining and petroleum industries) which appears to be stabilizing quarter on quarter. Excluding Remote Sites, organic growth was +6.5%.
  • Organic revenue growth in Benefits and Rewards Services was +5.7% reflecting:
    • A resilient performance in Latin America driven by strong growth in Chile and Mexico, offsetting ongoing weakness in demand in Brazil;
    • A particularly good performance in Europe, in the third quarter.
  • Strong demand for integrated Quality of Life Services offers with clients including Publicis, EM Lyon Business School, United Airlines, Google and Baptist Health System.

Outlook

Given the underlying trends in growth achieved year to date in Fiscal 2016, the Group confirms its objectives for Fiscal 2016, as follows:

  • Organic revenue growth of around 3%;
  • Around 8% growth in operating profit excluding the currency effects and exceptional expenses related to the adaptation and simplification program.
Founded in Marseille in 1966 by Pierre Bellon, Sodexo is the global leader in services that improve Quality of Life, an essential factor in individual and organizational performance. Operating in 80 countries, Sodexo serves 75 million consumers each day through its unique combination of On-site Services, Benefits and Rewards Services and Personal and Home Services. Through its more than 100 services, Sodexo provides clients an integrated offering developed over 50 years of experience: from foodservices, reception, maintenance and cleaning, to facilities and equipment management; from Meal Pass, Gift Pass and Mobility Pass benefits for employees to in-home assistance and concierge services. Sodexo's success and performance are founded on its independence, its sustainable business model and its ability to continuously develop and engage its 420,000 employees throughout the world.