Sodexho predicts a 50% leap in profits
French contract caterer Sodexho Alliance confidently forecast a 50% increase in profit next year despite the global economic slowdown, as it boosted its turnover and net profit in the 12 months to 31 August.
Sodexho saw profit increase by 63% from €85m (£53m) in 2000 to €138m (£86m) this year. Turnover rose by 14% to €11.9b (£7.4b) up from €10.5b (£6.5b) last year. Much of the increase is due to acquisitions. Excluding growth from acquisitions, profit increased by 19%.
However, Sodexho estimated the impact of the current economic crisis at its US operations would cost €170m (£106m) in lost turnover and €15m (£9.3m) in lost profit.
It expected turnover losses to reach €15m (£9.3m) in the UK and €12m (£7.5m) in France.
Pierre Bellon, chairman and chief executive, said the economic crisis, aggravated by uncertainties following the events of 11 September, was adversely affecting the company's leisure businesses but was confident in the future and predicted a €380b (£236b) growth in the market next year.
