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 $21 billion in revenues in its most recent completed fiscal year. The North American division generated around 38% of that total.
The unit posted an organic revenue increase of 4% (6.4% total) in the first nine months of the 2011 fiscal year, which ends August 31.
Over that nine-month period, revenues were up in all four of the company's major operating segments, with Healthcare (including Senior Dining) leading the way with a 5% increase. Organic growth of 1.1% in B&I was driven by the start-up of comprehensive service solutions contracts for clients such as GlaxoSmithKline, Henkel, British Aerospace and Colgate. Recent contract wins include General Electric Aviation in Ohio, Discover Financial Services and Guardian Life Insurance Co. of America.
The Healthcare segment growth was mainly driven by strong client retention rates and higher comparable unit growth. Among recently won contracts are Jackson Memorial Hospital in Florida, Crozer Chester Medical Center in Pennsylvania and Bethesda Memorial Hospital in Florida.
Organic revenue growth of 4.1% in the period in Education was mainly from increasing enrollment in both K-12 and colleges. Most recently, Sodexo started a major new contract for Detroit's 136 public schools to provide various nonfood support services. This is one of the largest Education contracts ever won by Sodexo in the U.S.
The company also partnered with celebrity chef Mai Pham on the Star Ginger concept and with the Cafe Spice casual Indian concept to bring its offerings to Sodexo managed venues.
The Jazzman's Cafe unit launched an online store and it as well as another Sodexo branded concept, SubConnection, debuted mobile apps for their concepts.
Major Segments Served:
Hospitals (29%), B&I (24%), College/University (22%), K-12 (11%), Senior Dining (9%), Military (2%), Government (1%), Other (2%)
No. of Contracts