SODEXHO ALLIANCE : Organic growth in revenues: 5.5 % for the first half of fiscal 2006
Market Wire, April, 2006
. Strong growth in Healthcare and Seniors of 8.2 %
. A dynamic Service Vouchers and Cards activity with growth of 16.8 %
. Total organic growth in revenues of 10.9 %
Paris, April 5, 2006. SODEXHO ALLIANCE (Euronext Paris FR0000121220 - SW / NYSE:SDX), the leading global provider of food and management services, today announced revenues for the first half of fiscal 2006, which ended on February 28, 2006.
Revenues by Activity
(in IFRS)
------------------------- ---------- ---------- ---------- --------- |In millions of euro |First half|First half| Organic |Currency | ------------------------- ---------- ---------- ---------- --------- | | 2004-2005| 2005-2006|growth (1)|impact(2)| ------------------------- ---------- ---------- ---------- --------- |Food and Management | 5,765| 6,371| 5.2%| 5.3%| ------------------------- ---------- ---------- ---------- --------- |Services: | | | | | ------------------------- ---------- ---------- ---------- --------- |. North America | 2,586| 2,919| 4.0%| 8.9%| ------------------------- ---------- ---------- ---------- --------- |. Continental Europe | 1,984| 2,111| 6.3%| -| ------------------------- ---------- ---------- ---------- --------- |. United Kingdom and | 640| 663| 2.1%| 1.5%| |Ireland | | | | | ------------------------- ---------- ---------- ---------- --------- |. Rest of the World | 555| 678| 10.6%| 11.6%| ------------------------- ---------- ---------- ---------- --------- |Service Vouchers and | 140| 178| 16.8%| 10.2%| |Cards | | | | | ------------------------- ---------- ---------- ---------- --------- |Elimination of | -3| -3| | | |intercompany sales | | | | | ------------------------- ---------- ---------- ---------- --------- |TOTAL | 5,902| 6,546| 5.5%| 5.4%| ------------------------- ---------- ---------- ---------- --------- ------------------------- ------------ ------ |In millions of euro |Acquisitions|Total | ------------------------- ------------ ------ | | |change| ------------------------- ------------ ------ |Food and Management | -| 10.5%| ------------------------- ------------ ------ |Services: | | | ------------------------- ------------ ------ |. North America | -| 12.9%| ------------------------- ------------ ------ |. Continental Europe | 0.1%| 6.4%| ------------------------- ------------ ------ |. United Kingdom and | -| 3.6%| |Ireland | | | ------------------------- ------------ ------ |. Rest of the World | -| 22.2%| ------------------------- ------------ ------ |Service Vouchers and | 0.2%| 27.2%| |Cards | | | ------------------------- ------------ ------ |Elimination of | | | |intercompany sales | | | ------------------------- ------------ ------ |TOTAL | 0.1%|10.9 %| ------------------------- ------------ ------
(1) Organic growth reflects the increase in revenues at constant consolidation scope and exchange rates.
(2) In the above table and going forward, the currency impact is determined by applying the average rate for the prior period to the current period revenues.
For the first half of fiscal 2006, growth in revenues was 10.9 %, with organic growth of 5.5 %. The strengthening of the U.S. dollar by 8.2 % as compared to the euro during the first six months of the fiscal year resulted in a favorable exchange rate effect of 5.4 %.
Michel Landel, CEO of SODEXHO ALLIANCE, said: "Organic growth in the first half validates the actions undertaken over the last year such as 'Clients for Life®' as well as marketing efforts to increase sales on existing sites. Organic growth in the second half could be lower. We continue to focus our efforts on improving our operational efficiency and our competitiveness, in line with our strategy."
Analysis of organic revenue growth
(See Table in Annex 2 and a selection of new clients in Annex 3)
Food and Management Services
. North America: 4.0 % led driven by strong performance in Healthcare and Seniors
. Continental Europe: accelerating to 6.3 %
. United Kingdom and Ireland: 2.1 %, confirming the return to positive growth
. Rest of the World: continuing strong development at 10.6 %
In North America, revenues in Business and Industry grew by 1.8 % as a result of the combination of several positive factors, including a better adaptation of our service offerings to the needs of our customers and strength in catering activities over the year end holiday period. These factors significantly offset the effects of staff reductions at certain of our large clients.
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