Sodexo, Inc., is the North American division of a Paris-based world-wide contract management company that offers a variety of support services to businesses, institutions and public entities in 80 countries, realizing $19.8 billion in revenues in its most recent completed fiscal year. The North American division generated around 39% of that total after posting an organic growth rate of 1.8% in FY2009.
The unit posted a revenue drop of 2.4% in the first nine months of the 2010 fiscal year, which ends August 31. Organic growth and acquisitions contributed to a 1.9% increase, but currency impact due to the strength of the Euro (which the parent company uses as its base currency) relative to the U.S. dollar dragged the overall number into negative territory.
In FY2009, Healthcare (4% organic growth) and Education (4.5% organic growth) were the growth drivers while B&I (5.9% decline) lagged due to reductions in corporate discretionary spending, staff cuts and shortened hours at many client sites. Nevertheless, the company did pick up some significant B&I clients including the Federal Reserve in New York/New Jersey and three Invesys Systems sites.
The Healthcare segment growth was mainly driven by increased revenue from existing sites, thanks to new service offerings, while the company says Education benefitted from rising college enrollments, higher school meal participation levels and strong client retention. Major new clients included Memorial Hospital Central of Colorado, North Shore Medical Ctr. in Miami, Kaiser Permanente in Los Angeles, Paterson (NJ) Public School District, Brigham Young University-Idaho and the University of Wisconsin-Parkside.
Meanwhile, the Sports & Leisure unit landed deals with the Indianapolis Museum of Art, Chicago Botanical Garden and the University of Michigan athletic venues.
In other news, Sodexo completed a master license agreement with the Bruegger's restaurant chain that gives it the right to open Bruegger's Bakery Cafes in their managed locations over the next 10 years. It also apppointed Lorna Donatone as company COO and president of its Education Market unit and named new Corporate Service Solutions, School Services and Hospitals Division presidents: Mark Bickford, Stephen Dunmore and Calvin Johnson, respectively.
Major Segments Served (e):
B&I (30%), Healthcare (27%), College/University (19%), K-12 (6%), Other (18%)
No. of Contracts