ISSY-LES-MOULINEAUX, France -- Sodexo's nine-month revenue grew 2.3%, driven by demand for its facilities management services. The company said the period was also marked by a decline in contract foodservice volumes and rising pressure from clients seeking to lower costs. Sodexo is the world's second-largest catering service provider, exceeded only by Compass Group.
Sodexo said total revenue for the nine-month period, ended May 31, rose to $18.8 billion from $18.1 a year earlier. On-site services revenues rose 3.7% year-over-year, with gains in facilities management services continuing to exceed contract foodservice growth in every region.
"Growth over the first nine months remained satisfactory in a challenging global environment," said Sodexo chief executive Michel Landel. "Our 'quality of life services' offer is well aligned with the needs of our clients, who are looking for an extensive range of services for their facilities around the world."
As it faces tougher times in Europe, Sodexo has beefing up its services outside its core catering business and paying closer attention to emerging markets to drive growth.