Sodexho Alliance: Fiscal 2002-2003 Half-Year Results.Business Editors PARIS--(BUSINESS WIRE)--May 7, 2003 The Board of Directors of Sodexho Alliance (Euronext:EXHO.PA) (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. ) met on May 5, 2003 under the chairmanship of Pierre Bellon to examine the interim financial statements for the six months that ended February 28, 2003. -0-
1. Financial Performance for the first half 2002-2003
Results (in EUR millions)
Six months Six months % change excl. Currency
ended ended currency effect
Feb. 28, Feb. 28, effect
2002 2003 % change
--------- ------------ ------------ -------------- -------- ----------
Revenues 6,572 6,198 +3% -9% -6%
EBITA 314 294 +5% -11% -6%
Group net
income 128 86 -17% -16% -33%
--------- ------------ ------------ -------------- -------- ----------
Excluding the currency effect: -- Consolidated revenues totaled EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 6.2 billion, with organic growth of 3%. -- EBITA EBITA Earnings Before Interest Taxes Amortization amounted to EUR 294 million, a 5% increase over the prior comparable period. -- EBITA margin stood at 4.8%, essentially from a significant improvement in operating results 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. . -- Net financial expense increased by EUR 27 million, mainly due to foreign exchange gains realized in the first-half of 2001-2002, when cash held by the Service Vouchers and Cards business 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. was transferred into hard currencies. -- The effective tax rate increased from 33% to 41%, as first-half 2001-2002 results included certain exceptional items which where not subject to income tax. -- Group net income after goodwill amortization amounted to EUR 86 million, a 17% decrease. The euro's sharp appreciation against other currencies, notably the US dollar, led to a negative translation effect in the consolidated accounts which reduced reported revenues by 9%, EBITA by 11%, and Group net income by 16%. However, unlike exporting companies, our subsidiaries' revenues and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are denominated in the same currency. Consequently, currency fluctuations do not create operating risks for Sodexho. 2. Sodexho 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. Currently, 49% of Sodexho's revenues are generated in North America, where organic growth in revenues amounted to 3% in the first-half of 2002-2003. Since October 1, 2002, Sodexho Inc. has provided food services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and on 55 US Marine Corps sites in 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. . We have established a strong relationship of mutual respect and true partnership with the US Marine Corps, and they have recently assured us that they are satisfied with our performance and have no basis to cancel our contract. With operations in all 50 states, Sodexho Inc. is solidly anchored in the United States, where it employs more than 110,000 Americans. Sodexho is proud to be a leader in the world's largest market, notably in the two client segments with the greatest growth potential: education and healthcare. 3. New Contracts Food and Management Services Business and Industry: Hewlett Packard - United States, 200 sites - 90,000 people - food services Rich Products - United States, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of - 35,000 people - multi-services HJ Heinz - United Kingdom, Wigan Wigan (wĭg`ən), city (1991 pop. 88,725) and metropolitan district, N England, located in the Manchester metropolitan area on the Douglas River. - 2,000 people - multi-services JP Morgan - United Kingdom, (2 sites), London - 2,216 people - multi-services Alcatel - France, Velizy-Villacoublay - 1,700 people - food services TotalFinaElf - France, La Mede - 200 people - multi-services Nuon - Netherlands (16 sites) - 7,000 people - food services Dutch Congress Center - Netherlands, The Netherlands, The officially Kingdom of The Netherlands byname Holland Country, northwestern Europe. Area: 16,034 sq mi (41,528 sq km). Population (2005 est.): 16,300,000. Capital: Amsterdam. Seat of government: The Hague. Most of the people are Dutch. Hague - 2,000 people - food services IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) - Italy, Milan/Rome - 3,000 people - food services Johnson Controls - Sweden, Goteborg - 900 people - food services Grupo Santander - Spain, Madrid - 11,000 people - multi-services Sony Corporation - Brazil, Sao Paulo - 565 people - food services Almacenes Exito - Colombia, Bogota - multi-services Nestle - Peru, Lima - 200 people - multi-services Banco Santander - Chile (115 sites), Santiago - multi-services Borders Group - Australia (3 sites) Knox, Brisbane and Carlton - multi-services Healthcare: Ben Taub General Hospital Ben Taub General Hospital is a hospital in Houston, Texas. Ben Taub was opened in May 1963 and is located in the Texas Medical Center. It is owned and operated by the Harris County Hospital District and is staffed by the faculty and students from Baylor College of Medicine. - United States, Texas - 879 beds - food services Fairview Health Services health services Managed care The benefits covered under a health contract - United States, Minneapolis - 2,613 beds - food services Medical Center Of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. - United States, Louisiana - 680 beds - food services Fundacion - Socio Sanitaria de Barcelona - Spain - 9 sites - multi-services Centre Hospitalier Prive de L'Ouest Parisien - France - 470 beds - food services Wesley Garden Aged Care Facilities - 6 sites - Australia, Sydney - 700 beds - multi-services Education: Penn Harris Madison School Corp - United States, Indiana -10,000 children - multi-services College Mount St. Vincent - United States, New York - 1,600 students - food services Concordia University - United States, Oregon - 1,100 students - food services Hayward School District - United States, California - 25,000 students - food services Clamart Municipal Schools - France, Clamart - 1,620 children - food services Remote Sites BP - (4 sites) United States and United Kingdom - 880 people - multi-services Service Vouchers and Cards Qualix SA Servicios Ambientais - Brazil - 8,000 beneficiaries - multi-services Pepsi - Hungary - 1,000 beneficiaries - multi-services 4. Fiscal 2002-2003 Outlook As Pierre Bellon said during the Annual Meeting of Sodexho Alliance shareholders last February, "the economic environment will not improve in 2003, which makes our clients hesitant about investing and hiring." We have therefore set the following intermediary objectives for fiscal 2002-2003: -- Organic growth in revenues of 4% or less, greater than the 1.9% in organic growth achieved in fiscal 2001-2002. -- EBITA margin of 4.7%, as compared to 4.2% in fiscal 2001-2002. -- Group net income of EUR 210 million, at constant exchange rates and excluding exceptional items. In his remarks at the Annual Meeting, Pierre Bellon indicated that this would be difficult. We are continuing to use our best efforts to meet this net income objective, but according to our estimates, we are currently closer to a figure of EUR 200 million at constant exchange rates and excluding exceptional items. At current exchange rates, the negative currency effect for fiscal 2002-2003 will be approximately EUR 20 million. We are confident in the future of our Group, which enjoys enormous growth potential both in Food and Management Services and in Service Vouchers and Cards. We also benefit from many advantages over our global competitors. -- Our values: service spirit, team spirit, the spirit of progress and conviviality con·viv·i·al adj. 1. Fond of feasting, drinking, and good company; sociable. See Synonyms at social. 2. Merry; festive: a convivial atmosphere at the reunion. . -- Our mission: improving the quality of daily life, which gives meaning to everything our employees do. -- A global network and operations in 74 countries. -- Low capital-intensive businesses that generate cash flow. -- An excellent business model where cash flow finances organic growth, reimburses borrowings and pays dividends. About Sodexho Alliance Founded in Marseille in 1966 by Chairman and Chief Executive Officer Pierre Bellon, Sodexho Alliance is the world's leading provider of food and management services. With more than 315,000 employees on 24,700 sites in 74 countries, Sodexho Alliance reported consolidated sales of 12.6 billion euros for the fiscal year that ended on August 31, 2002. The Sodexho Alliance share has been listed since 1983 on the Euronext Paris Bourse bourse (b  rs), term applied to a European stock exchange. The first international bourse was established in Antwerp in the 16th cent. , where its market value totals 3.2
billion euros. The Sodexho Alliance share has been listed since April 3,
2002, 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. . This press release contains "forward-looking statements" within the meaning of the United States 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 As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion