Support services group, Sodexo, has reported solid results for fiscal 2014, with organic growth in revenues up 2.3 percent on last year. Operating income grew by 0.7 per cent, and the group’s operating margins improved by 0.5 per cent over the past twelve months to 5.7 percent (excluding currency effects).
Sodexo also reported improved profitability in its On-site Services in Europe and the rest of the world, with organic growth in this sector up 1.8 per cent on the previous year. The report stated:
“In a sluggish global economy, this increase reflects stronger demand for Sodexo’s integrated Quality of Life Services offers in most regions. These well-configured offers, which include a significant facilities management component, helped to offset the decline in foodservices volumes, particularly in Europe, that resulted from client downsizing plans.”
Commenting on the figures, Michel Landel, Sodexo CEO said:
“Sodexo has met its objectives for 2014 and improved its profitability, in particular in On-site Services. We can also note strong momentum in Benefits and Rewards Services. Lastly, the share of facilities management services continues to increase, now representing 28% of our revenues, reflecting the increasing demand by our clients for integrated services. I would like to thank all of our teams for the ever stronger commitment demonstrated this year. This involvement and the progress we have made allow us to remain confident that we will yet again increase profitability in Fiscal 2015.”
Sodexo’s targets for 2015: organic growth in revenues of around +3 per cent and an increase in operating profit of +10 per cent (excluding currency effects).