Solid revenue growth for Sodexo

Solid revenue growth for Sodexo

Sodexo recently announced its end of year results. In line with 2018, the UK does not release separate results.

However, reported net profit was €665m, up +2.2%. Basic earnings per share was €4.56 up +3.6%, helped by a lower average share count following the caterer’s share buy-back program in Fiscal 2018. Organic revenue growth for the year, at +3.6%, was above the original guidance range of +2 to +3% given in November 2018 and the revised guidance of “around +3%” in July 2019. The underlying operating profit margin was in line with Sodexo’s comments in July and at the lower end of the original guidance range (5.5% to 5.7%, excluding currency impact) at 5.5%.

Sodexo CEO Denis Machuel said: “Our strategic agenda is working with revenue growth exceeding our expectations in nearly all regions, particularly in north America. This year we have invested in sales, marketing, training, digital and IT, reinvesting productivity gains for the greatest impact to structure solid and recurring top line growth. We have also enhanced execution on certain large contracts and our targeting and signing discipline is improving.

“Renewed management vigour at all levels, coupled with some key recruitments, has helped to positively evolve our culture and further embed discipline throughout the organisation. Although our global retention and development key performance indicators are not where we would like them to be, I am convinced that we are on the right path to better growth over the next few years.”

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