Fiscal 2019 first quarter revenues totalled €5.7 billion, up +6.8% compared to the same period in the previous fiscal year.
Organic growth reached +2.6%, with organic growth for On-site Services increasing by +2.3%. Organic revenue growth in Benefits & Rewards Services continued to improve in the first quarter at +9.5%.
Sodexo reported growth in Q1 was “in line with expectations”, with stable growth in Europe, continued solid growth in developing economies and progressive improvement in North America. It added its action plans are “delivering” and the productivity is being “reinvested in growth initiatives”.
Looking ahead at the Group’s objectives for the full year Fiscal 2019, Sodexo is maintaining organic revenue growth between +2% and +3% and an underlying operating profit margin between 5.5% and 5.7%, excluding the currency impact.
Sodexo’s strategic agenda is aimed at delivering market leading growth, stating the first steps to return to this performance are to achieve organic growth of more than 3% from Fiscal 2020 and then improve margins back up over 6% sustainably.
Speaking about the results, Sodexo CEO, Denis Machuel, said: “First quarter revenue growth is in the middle of the range of our guidance. It reflects a good performance relative to Fiscal 2018 but as expected, does not match the growth in the prior quarter which was boosted by seasonal factors.
“While new signatures in Health Care and Seniors in North America are good, we remain prudent on the recovery in this segment.
“We are vigorously implementing our action plans. As we generate productivity, we are reinvesting in sales, marketing, digital and innovation. We maintain our objectives for the year as a whole.”