Sodexo YTD Revenue Climbs 95 To 16 Billion

ISSY-LES-MOULINEAUX, France -- The French contract foodservice and facilities management giant reported higher revenues in the first nine months of fiscal 2015, boosted by strong performances in North America, the UK and Ireland, along with favorable currency exchange rates.

Sodexo's consolidated revenues for the first nine months ending May 31 totaled $16.68 billion, an increase of 9.5% from $15.23 billion last year. Currency exchange had a 7.3% positive impact.

"Despite a more challenging economic environment in Latin America and certain European countries, Sodexo's growth in the past three months was in line with the first half of the year," Sodexo chief executive Michel Landel said. "For fiscal 2015, we confirm our full-year objective of around 10% growth in operating profit excluding the currency effect."

Globally, onsite services revenues climbed 9.4%. North American revenues grew 16.6% and United Kingdom and Ireland revenues increased 19.8%. Revenue declined 1% in Continental Europe and grew 7.6% in the rest of the world.

Sodexo cited a "solid growth dynamic" in the corporate segment in North America, with 3.7% revenue growth year to date. The company's performance in the healthcare and seniors sector grew 0.4% and its revenues at educational facilities dipped 0.3% compared with last year.

For the year, the company anticipates organic revenue growth of around 2.5%, taking into consideration the more difficult economic environment in Latin America and parts of Europe.