For the first half of 2012, Sodexo reported operating profit increased 14.5 percent (16 percent excluding currency impacts) with group net income up 17.9 percent.
Commenting on the results, CEO Michel Landel said in a prepared statement: "Our first half results are solid, demonstrating the relevance of Sodexo's strategy and quality of life services offer, illustrated by the major contract wins of the past several months. Organic growth is increasing, driven by development of more than 10 percent in our facilities management services and in our Motivation Solutions activity.
“In a tough economic environment, our teams are fully mobilized to provide clients the innovation and productivity they expect.
“We are maintaining our full year Fiscal 2012 objectives of an increase of around 10 percent in operating profit based on organic revenue growth of between 6 percent and 7 percent, with acquisitions also impacting revenues by around 4 percent."
Consolidated revenues for the first half of fiscal 2012 increased 9.7 percent to 9.1 billion euro, reflecting solid organic growth of 6.4 percent, a 3.9 percent increase related to acquisitions and changes in consolidation scope, and a negative currency impact of 0.6 percent.
At 6.2 percent, organic growth in on-site service solutions accelerated versus the prior year, a result in particular of the Rugby World Cup hospitality contract as well as the pace of activity in the rest of the world (Latin America, Asia, Australia and remote sites).
For the first time in three years, Motivation Solutions recorded double-digit organic growth (11.5 percent). This performance mainly comes from Latin America, but also reflects new growth in Europe and Asia.
During the first half of fiscal 2012, the three main acquisitions made at the beginning of the fiscal year contributed 3.9 percent to the increase in revenues.
On Sept, 6, 2011 Sodexo acquired Puras do Brasil and became the leader in on-site service solutions in Brazil, one of the world's most dynamic economies offering Sodexo considerable growth potential.
On Sept. 22, 2011 the group acquired Lenotre in France. Lenotre's recognized brand and savoir faire as well as its strong reputation, its three-star restaurant and 11 Meilleurs Ouvriers de France (a prestigious award for culinary masters) will allow Sodexo to reinforce its gastronomic expertise.
On Nov. 30, 2011, Sodexo acquired U.S.-based Roth Bros, which designs, manages and delivers technical facilities management services (HVAC, energy management, facilities automation and control, and fluid and energy maintenance services).
Integration of these acquisitions is proceeding successfully and in line with the group's expectations.
Operating profit was 559 million euro, a 14.5 percent increase at current exchange rates, or 16 percent excluding currency impacts.
This performance reflects:
- A slight increase in on-site service solutions in the context of high food price inflation in certain countries;
- A very good performance in Motivation Solutions (24.2 percent at constant rates) as a result of increased volumes and a number of favorable non-recurring items.
- Group net income was 297 million euro, a 17.9 percent total increase, or a 19.4 percent increase excluding currency effects.
Excluding the favorable accounting adjustment related to the cost of retirement plans in the United Kingdom, group net income increased by 10.1 percent (an 11.7 percent increase excluding currency effects) and includes an 8 million euro increase in net financial expenses compared to the first
