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Global services provider Sodexo reports 2% revenue growth

8th Nov 2018 - 09:43
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Sodexo 2018 results Sean Haley
Abstract
Worldwide services company Sodexo has reported organic revenue growth of 2% in its 2018 results, and looks forward to a broadly similar performance in 2019.

However, the accounts for the year-end August 31st showed underlying net profit down 8.6%.

Chief executive Denis Machuel said: “This has been a challenging year for Sodexo, but we know what went wrong, and we know what we need to do to fix it.

“Healthcare and education in North America continue to drag on our performance, and the turnaround is going to take some time.

“Vigorous action plans are being deployed across the organisation by the new executive committee to address our execution issues. We are laser-focused on sales and retention, discipline and accountability.”

In the UK, the company recently renewed its Quaerere Academy Trust contract in Sandwell, West Midlands for five more years with a £2.8m catering contract, featuring its new school food and dining room offer called ‘Food & Co. by Sodexo’.

Sean Haley, regional chairman for Sodexo UK and Ireland, said of the UK market: “It has remained highly competitive in the UK and Ireland with continued emphasis on price and increased scrutiny on the value of outsourcing particularly in the public sector.

“Our investment in our people, consumer insight and acquisitions, supported by our sustainable and ethical business practices, has helped us to win business across all our sectors.

“We have achieved renewed growth in our education business winning state school contracts, such as Wellspring Academy Trust and Great Western Academy, by developing our food offer with insight from school children.

“Our acquisition of the Good Eating Company has strengthened our corporate services business with significant wins such as Nomura.  In our government business, we won the largest integrator contract in the public sector with the Department of Work & Pensions.

“We have also continued to invest in client feedback and developing strategic partnerships which has contributed to over 95% retention across our business and successful extensions such as Coca Cola and Chesterfield Royal Hospital.

“In the coming year, we expect the market to remain competitive but we anticipate greater emphasis on quality and value by clients and consumers.

“We will continue to invest in our people, our values and doing business the right way to achieve continued growth across all sectors.”

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Written by
David Foad