Sodexo reported revenues for the first quarter ended Nov. 30 grew 10.5 percent from the previous year and organic revenue was up 4.7 percent. However, the Issy-les-Moulineaux, France-headquartered company continues to be cautious in the present economic environment, yet confirmed organic revenue and operating profit growth for fiscal 2011.
Consolidated total revenues for the quarter increased 10.5 percent to 4.27 billion euros from 3.86 billion euros in the previous year, which includes a positive currency effect of 5.9 percent. On-site service solutions revenues were 4.11 billion euros, up 11 percent from last year, while Motivation Solutions revenues declined 1.1 percent to 164 million euros. Organic growth in on-site service solutions revenues for the quarter was 4.6 percent and Motivation Solutions' was up 7.2 percent. Sodexo said its food and facilities management services is now on-site service solutions and service vouchers and cards is Motivation Solutions.
Michel Landel, CEO of the company said in a prepared statement, "The first three months of fiscal 2011 are in line with our expectations. Our organic growth is a result of the quality and relevance of our offer for our clients, who increasingly demand comprehensive service solutions, and of the daily efforts of Sodexo's 380,000 employees. While the economic environment causes us to continue to be cautious, we reaffirm our objectives for the current fiscal year and the medium term."
For fiscal year 2011, Sodexo confirmed organic revenue growth between 3 percent and 4 percent and operating profit growth of 10 percent, at constant rates.
In addition, the company said its financial position has not varied since Aug. 31, 2010, the end of the fiscal year.