Fiscal 2006: Sodexho's Overall Growth Accelerates + 9.4 % and Organic Growth Increases to + 6.4 % from + 4.3 % in Fiscal 2005.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- Sodexho Alliance (NYSE NYSE See: New York Stock Exchange :SDX (1) See AIT. (2) (Storage Data Acceleration) An earlier technique from Western Digital that improved performance of IDE CD-ROM drives. SDX-compliant drives used a special 10-pin cable, but the method never took off. ) (PARIS:SW):
-- Confirmed leadership in Food and Facilities Management Services:
-- Strong acceleration of organic growth in North America
(+ 5.0 %) and Continental Europe (+ 5.2 %) driven, in
particular, by Healthcare and Seniors
-- Return to growth in United Kingdom and Ireland: + 4.8 %
-- High activity levels in the Rest of the World: + 16.1 %
(Remote Sites, Latin America and Asia-Australia)
-- Continuing rapid development in Service Vouchers & Cards: + 15.9%
SODEXHO ALLIANCE (NYSE:SDX) (PARIS:SW), the leading global provider of food and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. services, today announced consolidated revenues for Fiscal 2006, up 9.4 %. Group organic growth accelerated from + 4.3% in Fiscal 2005 to + 6.4 % in Fiscal 2006. [TABLE OMITTED] (1) Organic growth: increase in revenues at constant consolidation scope and exchange rates. (2) Currency impact is calculated by applying the average exchange rate for the prior year to the current fiscal year figures Acceleration of organic revenue growth during the fiscal year resulted primarily from: * Development in Healthcare and Seniors (+ 8.1 %), * Progress in Business & Industry (+ 6.4 %), and * Strong growth in Service Vouchers and Cards (+ 15.9%). In Education, the modest growth reflects the Group's selectivity in public sector markets (+ 3.7 %). Michel Landel, Chief Executive Officer of Sodexho, said: "During Fiscal 2006, we have continued to implement our strategy. Our client retention rate continued to improve, reaching 93.9%. Comparable unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. growth on existing sites exceeded 3% and our development rate of new contracts awarded during the fiscal year was above 9%. The Group is currently closing and auditing its accounts for Fiscal 2006 in IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System . These accounts will be published on November 16. Growth in our operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. should be consistent with, if not slightly above, our objective of + 6%. This performance gives us confidence in our medium term objective to achieve average annual organic revenue growth of 7%." Organic growth revenue analysis (See table in Annex 2 and a selection of new clients in Annex 3) * Food and Facilities Management Services In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , revenue reached 5.5 billion euros, with organic growth gaining 0.6 % to reach 5.0 % for the full fiscal year. Revenue in Business & Industry increased for the first time in three years. The 2.4 % growth resulted, in particular, from improved client retention and from the development of sales on existing sites, including in leisure activities, such as the Houston Space Center, and also from increased demand for catering services. The solid growth in Healthcare and Seniors (+ 7.2 %) was driven by: * The ramp-up of significant contracts signed last year, notably those concluded with New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and with the Hermann Memorial (Texas), * New contracts in Facilities Management, representing two thirds of the sales development over the year. Included among Sodexho's new clients are the Mount Clemens Mount Clemens (klĕm`ənz), city (1990 pop. 18,405), seat of Macomb co., NE of Detroit, SE Mich., on the Clinton River; settled c.1798, inc. as a city 1879. The city is known for its mineral waters. General Hospital (Michigan) and the North East Medical Center (Texas), * Robust development of sales on existing sites. Education was up 4.7 % compared to the prior year, despite: * the negative impact of hurricanes during the first months of the fiscal year, and * the effect of contracts that were not renewed with certain public schools at the end of Fiscal 2005, a result of Sodexho's non-acceptance of price reductions to a level that would have prevented the Group from maintaining its quality standards. In Universities, the revenue growth on existing sites benefitted from good summer camp activity in the last months of the fiscal year as well as from continued development in Facilities Management, such as Ohio Northern University Ohio Northern University is a private, United Methodist Church-affiliated university located in the United States in Ada, Ohio, founded by Henry Solomon Lehr in 1871. ONU is accredited by The Higher Learning Commission and the North Central Association of Colleges and Schools. where the foodservice contract was extended to facilities management. In Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , revenue reached 4.1 billion euros and internal growth improved to 5.2 % compared to 4.0 % in Fiscal 2005. In Business & Industry, the revenue increase (+ 5.3 %) resulted from three main factors: * new contract awards across the continent, * positive development of leisure activities in France, as highlighted by the signature of a master agreement with the Pierre & Vacances Group, and by the foodservice concession at the chateau of Vaux-le-Vicomte in the fourth quarter, * the progressive start-up of services in two new correctional facilities under public-private partnership Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP or P3. arrangements in France. In Healthcare and Seniors, robust organic growth (+7.7 %) resulted from the highly effective Fiscal 2005 new sales efforts and from continuing extension of the Group's service offerings. Recent new contracts awarded to Sodexho include both a hospital and the public schools of Saint-Malo. Slower growth in Education (+1.4 %) reflects Sodexho's continued selective approach, particularly in public sector markets. In the United Kingdom and Ireland, revenue rose to 1.4 billion euros. For the first time in three years, and in line with the Group's plans, Sodexho returned to growth, recording an increase of +4.8% compared to -2.6% in Fiscal 2005. This progress results primarily from new contracts won in Healthcare, Correctional Facilities and Defense, segments where revenues include a significant facilities management component. The summer months were strong in leisure and hospitality, for example at the Chelsea Flower Show The Chelsea Flower Show is a garden show held each year on five days in May by the Royal Horticultural Society in the grounds of the Royal Hospital Chelsea in Chelsea, London, England. It is the most famous such show in the United Kingdom, and part of London's summer social season. and the Ascot races. Action plans are in place to continue to further improve client retention rates. In the Rest of the World, revenue was 1.4 billion euros. Organic growth of 16.1%, was primarily driven by: * double-digit development in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , in Asia and in Australia, * a robust level of activity in Remote Sites, given the strength of raw material prices, * the start-up of operations in Correctional Facilities in Chile. The Group also continued to rapidly expand its activities in mainland China and in India. Service Vouchers and Cards Revenues increased to 373 million euros, with organic growth improving from 13.2% to 15.9%. The issue volume (or face value multiplied by the number of service vouchers and cards issued) was 6.3 billion euros, up 13.8% (at constant consolidation scope and exchange rates). Demand for traditional services (Restaurant Pass and Food Pass) remained very strong in Latin America where growth exceeded 20% over the past 12 months. During Fiscal 2006, the Group increased its penetration in Europe with the launch of new services such as Childcare Pass in the United Kingdom, the Sport and Culture Pass in Belgium or the Childcare Pass in Spain. Conference call SODEXHO ALLIANCE will hold a conference call today to discuss revenues for Fiscal 2006. The call will begin at 8:30 am (Paris time). The call-in access number is + 33 1 72 26 01 65. A slideshow presentation will be available by clicking on the link www.sodexho.com, under the "latest news" section, beginning at 7:00 a.m. To access the replay of the conference call, please dial + 33 1 72 28 01 49, code: 186238#. Financial communications calendar * Fiscal 2006 results The press release for Fiscal 2006 results will be published on November 16. 2006. A presentation for analysts and journalists will be held the same day, at Etoile-St-Honor[c], 23, rue Balzac, 75008 Paris. * First quarter revenue for Fiscal 2007 January 10, 2007 conference call. * Annual General Meeting of Shareholders for Fiscal 2006 January 30, 2007 at 16 :30 (Paris time). The meeting will take place at the Palais des Congr[c]s (Porte Maillot, Paris). The above dates are provided for information only and are subject to change. This press release contains 'forward-looking statements' within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These include, but are not limited to, statements regarding anticipated future events and financial performance with respect to our operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like 'believe,' 'expect,' 'anticipate,' 'estimated' , 'project ' , 'plan' 'pro forma,' and 'intend' or future or conditional verbs such as 'will,' 'would,' or 'may.' Factors that could cause actual results to differ materially from expected results include, but are not limited to, those set forth in our Registration Statement on Form 20-F, as filed with the Securities and Exchange Commission (SEC), the competitive environment in which we operate, changes in general economic conditions and changes in the French, American and/or global financial and/or capital markets. Forward-looking statements represent management's views as of the date they are made, and we assume no obligation to update any forward-looking statements for actual events occurring after that date. You are cautioned not to place undue reliance on our forward-looking statements. About Sodexho Alliance SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the leading global provider of Food and Facilities Management services, with more than 324,000 employees on 26,700 sites in 76 countries. Listed on Euronext Paris Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the London Stock Exchange. and on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , the Group's current market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. is 6.9 billion euro. [TABLE OMITTED] Growth breakdown: * Organic growth 6.4% * Acquisitions (*) 0.2% * Currency effect (**) 2.8% (*) net of divestitures (**) currency impact is calculated by applying the average exchange rate for the prior year to the current fiscal year figures [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] (1) Organic Growth : increase in revenue at constant scope and exchange rates. * Annex 3 : A selection of new clients Foodservices & Facilities Management North America Business & Industry Novartis, 6 sites (5,500 employees, foodservices and facilities management) ; Seattle Aquarium The Seattle Aquarium is a public aquarium located on Pier 59 on Seattle, USA's Elliot Bay waterfront. Run by the city, it opened on May 20, 1977. After the closure of Ivar's Aquarium in 1956, the city was at a loss for its major attraction. , (foodservices) ; Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Company, California (2,800 employees, foodservices) ; GE Nuclear, Wilmington, North Carolina For other places with the same name, see Wilmington (disambiguation). Wilmington is a city in New Hanover County, North Carolina, United States. The population was estimated at 100,000 as of 2006;[1] , (1,900 employees, foodservices) ; NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. White Sands, New Mexico
White Sands is a census-designated place (CDP) in Doña Ana County, New Mexico, United States. The population was 1,323 at the 2000 census. (900 customers, foodservices); US Navy MWR MWR Morale, Welfare and Recreation MWR Ministry of Water Resources (China) MWR Monthly Weather Review MWR Microwave Radiometer MWR Multiple Worksite Report (US Department of Labor) MWR Microwave Radiometry , Florida (15,000 customers, foodservices) Healthcare and Seniors Baptist Hospital, Tennessee (530 beds, foodservices); DePaul Health Center, Missouri (530 beds, foodservices and facilities management); Northeast Medical Center, Texas (160 beds, foodservices and facilities management); Westminster-Canterbury, Virginia, (420 beds, foodservices); Covenant Village of Florida, (390 beds, foodservices); Morris View Nursing Home, New Jersey (430 beds, facilities management); Mount Clemens General Hospital, Michigan, (250 beds, foodservices and facilities management); Education Francis Howell School District, Missouri (18 schools, 18,200 students, foodservices); Springfield Public Schools The Springfield Public Schools is a comprehensive community public school district serving students in Kindergarten through 12th grade from Springfield Township, in Union County, New Jersey, United States. , Massachusetts, (27,500 students, foodservices); Wayne Township School District, New Jersey (14 schools, 9,000 students, foodservices) Continental Europe Business & Industry Finnair, Finland (1,000 employees, foodservices); Deutsche Post - Posttower, Germany (3,000 employees, foodservices); DESY DESY - Deutsches Electronen Synchrotron Laboratory, Hamburg, Germany. , Germany (1,400 employees, foodservices) ; RIE n. 1. See Rye. Rie grass a - (Bot.) A kind of wild barley (Hordeum pratense b - Ray grass. - Dr. Prior. Saint Georges Chateaudun Laffitte, France (foodservices) ; RIE Cristallin, France, (foodservices); Akzo Nobel, Sweden, (facilities management) ; If Insurance Espoo, Finland, (650 employees, foodservices) ; ACERGY, France, (foodservices) ; RIE le Doublon, France (foodservices) ; BMW BMW in full Bayerische Motoren Werke AG German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. Group Iberia, Spain (700 employees, foodservices) ; Microsoft, Netherlands, (foodservices, facilities management) ; Groupe Mornay Paris, France, (foodservices) ; KappAhl, Sweden, (facilities management) Healthcare and Seniors Mutualit[c]s de L'Isere - Clinique les Eaux Claires, France (220 beds, foodservices and facilities management); Centre Hospitalier Lucien Russel, France, (630 beds, foodservices) Education Thiais, France (foodservices) Mairie de Saint Malo, France (foodservices for the schools and the hospital) UK & Ireland Business & Industry Everton Football Club (foodservices) Healthcare and Seniors Salvation Army (2 sites, 450 employees, facilities management) Education West Sussex Secondary Schools (13 schools, 13 000 students, foodservices) Rest of the World Business & Industry GM Colombia , Colombia (foodservices); Veracel, Brazil (foodservices); Pandrobras Rlan, Brazil (foodservices) ; Lenovo Mobile, China (foodservices) ; Procter & Gamble, Brazil (550 employees, foodservices) ; Sony Huizhou, China (10 000 employees) Healthcare and Seniors ACHS ACHS Asociación Chilena de Seguridad (Spanish; Santiago, Chile) ACHS Australian Council on Healthcare Standards ACHS Association of College Honor Societies ACHS Australasian College of Health Sciences (Chilean Safety Association) (23 sites) Education Foshan Country Garden School, China (3,100 students, foodservices); Lecong Middle School (3,200 students, foodservices) Service Vouchers and Cards Latin America * Traditional service offerings : Argentina : Grupo Pe[+ or -]aflor (Food Pass, 1,186 beneficiaries); Casino Magic Neuqu[c]n (Food Pass, 523 beneficiaries); Ecco (Food Pass, 235 beneficiaries) Brazil : Carioca Christiani Nielsen (Meal Pass, 400 beneficiaries); Samsung Electronics (Meal Pass, 340 beneficiaries); Assistance Institute of the Municipality of Belem (Meal Pass, 895 beneficiaries); Citizens Institute of Curitiba (Food Pass,1,283 beneficiaries) Chile : Entel (Mobility Pass,1,000 beneficiaries) Mexico : Technical and Engineering Services Assistance (Food Pass, 1,000 beneficiaries); Natural Resources Ministry ; Venezuela : Manufacturas de Papel (Food Pass, 1,896 beneficiaries); Distributeur Greacla (Food Pass, 714 beneficiaries); * Cross-selling : Brazil : Municipal Business Development of Campinas (Food Pass, 1,522 beneficiaries); Patrimonial PATRIMONIAL. A thing, which comes from the father, and by extension, from the mother or other ancestor. (Food Pass, 1,488 beneficiaries) Colombia : Willis insurance (Work clothes) Chile : Altec(Mobility Pass, 800 beneficiaries) ; * New services : Venezuela : Independent Firefighters Institute (Food Pass, 414 beneficiaries); Texcoven (Food Pass, 657 beneficiaries) Asia * Traditional service offerings : India: Tata Consulting group (Meal Pass, 22,000 beneficiaries); Blue Star Limited (Meal Pass, 1,521 beneficiaries); Tata Motors limited (Gift Pass, 1,969 beneficiaries); National Thermal Power Corporation National Thermal Power Corporation is the largest power generation company in India. The Forbes Global 2000 ranking for 2005 ranked it as the 5th leading company in India and the 486th [1]leading company in the world. (Meal Pass, 1,004 beneficiaries); Deutsche Bank (Meal Pass, 650 beneficiaries); Business Objects (Meal Pass, 280 beneficiaries); BNP Paribas (Gift Pass, 204 beneficiaries) Central Europe * Traditional service offerings : Poland: Kopalnia Wegla Kamiennego Kazimierz-Juliusz(Gift Pass, 1,700 beneficiaries) Czech Republic : TRW-DAS (Meal Pass, 240 beneficiaries); GEHE Pharma Praha (Meal Pass, 167 beneficiaries) * Cross-selling : Poland : Yellow Pages Polskie KsiAA1/4ki Telefoniczne (Education & Leisure Pass, 540 beneficiaries) Bank Ochrony Arodowiska (Culture & recreation Pass, 401 beneficiaries) Slovakia : Les brasseries Pivovar A ariA (Vital Pass, 530 beneficiaries) * New services : Czech Republic : Deloitte (Flexi Pass); Lego (Relax Pass) Slovakia: Slovak Telecom (Vital Pass); Tesco (Flexipass) Western Europe * Traditional service offerings : Belgium: Multipharma (Meal Pass, 1,200 beneficiaries); KBC bank (Gift Pass, 2 000 beneficiaries) France : Mairie de Marseille (Meal Pass, 9 500 beneficiaries) Germany : UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System (Meal Pass, 620 b[c]n[c]ficiaries) Italy: BNL BNL Brookhaven National Laboratory (Upton, NY) BNL Bibliothèque Nationale de Luxembourg (French) BNL Banca Nazionale del Lavoro BNL Berkeley National Laboratory BNL Bare Naked Ladies (Meal Pass, 4 200 beneficiaries); Banca Popolare di Milano Banca Popolare di Milano (ISE: IT0000064482) is an Italian cooperative bank. History The first cooperative bank in Italy, it was founded in 1865 in Milan by Luigi Luzzatti, who later served as the nation's Prime Minister. (Meal Pass, 1,200 beneficiaries) UK : Cummins Limited(Education & Leisure Pass, 165 beneficiaries); Imperial Tobacco (Education & Leisure Pass, 101 beneficiaries) * New services : Belgium : Electrabel (Sport and culture, 1,400 beneficiaries) Spain: Mairie de Madrid (Assistance) |
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