Sodexo reports €11.04bn in revenues in first half of 2019

12th April 2019 (Last Updated April 12th, 2019 12:26)

French food services company Sodexo has reported a 7.3% increase in revenues, totalling €11.04bn, for the first half of 2019 ending 28 February this year.

Sodexo reports €11.04bn in revenues in first half of 2019
Sodexo reports a 7.3% increase in revenues, totalling €11.04bn, for the first half of 2019. Credit: Sodexo.

French food services company Sodexo has reported a 7.3% increase in revenues, totalling €11.04bn, for the first half of 2019 ending 28 February this year.

The organic revenue growth stood at 3.1% due to encouraging second quarter performance and growth in all segments, including Benefits & Rewards Services.

Sodexo has reported a 10.1% increase in organic revenue growth for the benefits and rewards services segment.

Operating profit of the company was €578m, a 4.2% increase compared to €554m during the first half of the prior year.

Sodexo has reported a 2.8% increase in on-site services organic revenue growth. However, the company reported a 2.3% decline in group net profit from €372m to €364m.

“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.”

Sodexo CEO Denis Machuel said: “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 organisation.

“We are also achieving strong growth in Brazil both in the Benefits & Rewards business as well as Onsite, helped by an improving economic environment.

“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.”

The group has maintained its guidance in organic revenue growth of between 2% and 3% for the second half.