Sodexo’s organic growth ‘above expectations’ for first half of year

12/04/2019 - 09:27
Food and services provider, Sodexo, has announced that it’s organic growth for the first half of the fiscal year 2019 was ‘above expectations’ at 3.1%.

It’s key performance indicatiors (KPI) were ‘better year on year’ with client retention, new sales development and same site sales growth all up on the previous quarter.

Sodexo CEO, Denis Machuel, said: ” Growth has been encouraging in the second quarter in both Onsite Services and Benefits & Rewards. Client retention, development and same site sales growth KPIs are all improving. The margin is down slightly in Onsite Services, as expected, and up slightly in Benefits & Rewards. We have accelerated our capital expenditure in the Education and Sports & Leisure segments. These are good signs that our focus on growth agenda is beginning to move the cursor.

“I am pleased with the progressive improvement in growth in North America, in Q1 and then in Q2. Steady progress is being made by the new Health Care North America team in reasserting discipline and accountability throughout the organization. We are also achieving strong growth in Brazil both in the Benefits & Rewards business as well as Onsite, helped by an improving economic environment.

We maintain our guidance both in top line organic growth and underlying operating profit margin.”

It’s underlying operating profit increased 3.1% resulting in an underlying operating margin of 5.9%, however, reported net profit was down 2.3%.

It had an on-site services organic revenue growth of 2.8% which reflects it growth in North America, (2.4%) in the second quarter, ‘solid’ growth in Europe (3%) and the region in Africa, Asia, Australia the Middle East and Latin America, continued to grow (6.9%).

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