Rugby World Cup Helps Sodexo to Solid Results
Sodexo is forecasting organic revenue growth of around 4 per cent this year, buoyed by a successful 2019 Rugby World Cup and a further boost expected from the group’s involvement with Tokyo 2020.
The French multinational foodservice and facilities management provider is reporting a 7.1 per cent increase in revenue for the first quarter of fiscal 2020, despite losses associated with its decision to withdraw from unprofitable healthcare contracts in the United States.
It has also announced plans to cut back on an aggressive acquisitions programme that saw it acquire U.S. food and hospitality services provider for sports, convention and entertainment venues, Centerplate, for $675 million in 2017.
Additional savings are expected from a group-wide “Fit for the Future” initiative targeting Selling, General and Administrative Expenses (SG&A).
Sodexo CEO, Denis Machuel, says:
“With renewed management teams in North America, strong outsourcing trends in developing economies, continuing growth in Europe and rigorous implementation of our action plans to enhance productivity and reinvest in sales, marketing, digital capabilities and innovation, we are confident that we are on the right track.”