Sodexo Targets Earnings Growth on Emerging Market Expansion
Sodexo (SW), whose clients include the U.S. Marine Corps, targets earnings growth next year after its full-year operating profit rose 11 percent on expansion in emerging markets.
Operating profit for the 12 months through August rose to 853 million euros ($1.18 billion) from 771 million euros the year earlier, the Issy-les-Moulineaux, France-based company said in a statement today. That compared to the 865 million-euro average estimate of eight analysts in a Bloomberg survey.
Sodexo, the world’s second-largest caterer after Compass Group Plc (CPG), will provide services for the London Olympic Games in July. Both companies have benefited as businesses and governments outsource catering and cleaning services. Sodexo this year acquired Puras do Brasil to expand its service offer in the fast growing south American market.
The French company aims to increase operating profit, excluding exchange rate effects and other items by 10 percent in fiscal 2012 and organic growth by between 5 percent and 8 percent, it said. Sodexo also said it expects consolidated revenues of about 4 percentage points from its recent acquisitions, including Puras do Brazil and Lenotre.
Sodexo is prepared to decrease operating costs and limit the impact of food inflation as debt of governments and rising unemployment “exert significant pressure” on economic activity in both the public and private sectors, Chief Executive Officer Michel Landel said in the statement.
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