Sodexo's first-half results show 8.3% revenue growth in UK and Ireland business

20 April 2012
Sodexo's first-half results show 8.3% revenue growth in UK and Ireland business

French catering and facilities management giant Sodexo has posted "solid" first-half results with revenues in its UK and Ireland business growing 8.3% to €680m (£556m).

The company said the increase was driven by the success of the hospitality contract from the Rugby World Cup in New Zealand in September and October last year, with revenues of about €52m (£43m).

Operating profit grew to €56m (£46m) from €21m (£17m) for the first half of the previous fiscal year, which includes a favourable accounting adjustment of €26m (£21m) resulting from pension adjustment when the Sodexo replaced the Retail Price Index with the Consumer Price Index.

Sodexo's burgeoning facilities management business with its corporate clients, such as GSK and British Aerospace, was reported to have offset a decline in the number of consumers in food services.

Revenues remained flat in its healthcare sector as a result of weak business development over recent months, Sodexo said, while organic growth revenues of 0.1% in education reflects "continued significant commercial selectivity".

Commenting on the results, chief executive Michel Landel said: "Our first half results are solid, demonstrating the relevance of Sodexo's strategy and ‘quality of life' services offer, illustrated by the major contract wins of the past several months.

"Organic growth is increasing, driven by development of more than 10% in our facilities management services and in our motivation solutions activity."

"In a tough economic environment, our teams are fully mobilised to provide clients the innovation and productivity they expect.

"We are maintaining our full year Fiscal 2012 objectives of an increase of around 10% in operating profit based on organic revenue growth of between 6% and 7%, with acquisitions also impacting revenues by around 4%."

Sodexo reported a 14.5% rise in operating profit to €559m (£457m) for the business as whole, on sales of €9.07b (£7.4b).

Sodexo Prestige wins £7m deal at St Edmundsbury Collection >>

Sodexo switches to Fairtrade sugar >>

Sodexo and Unilever enter into £375m partnership >>

By Janie Manzoori-Stamford

E-mail your comments to Janie Manzoori-Stamford here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to jobs

Looking for a new job? Find your next job here with jobs

Blogs on ]( Catch up with more news and gossip on all Caterer's blogs
[E-Newsletters]([ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking