Sodexo Posts Increase In Profit, Raises Dividend

Sodexo SDXAY reported a 12% rise in its fiscal year 2014 net profit and lifted its dividend. Sodexo posted a net profit of EUR490 million ($609 million) in the year, versus a year-ago profit of EUR439 million. Its earnings per share increased to 3.23 euros from 2.91 euros. Its revenue came in at EUR18.02 billion, while organic revenue growth was 2.3%. Its operating profit gained 13.8% to 939 million euros versus 825 million euros. Before exceptional items, the company's operating profit rose to 966 million euros from 964 million euros. The announced its plans to lift its dividend by about 11% to EUR1.8 per share for the year. For fiscal year 2015, Sodexo now projects organic revenue growth of 3%, versus a 2.6% growth in fiscal year 2014. It also projects operating profit, excluding currency effects, to increase about 10%. Michel Landel, Sodexo CEO said: “Sodexo has met its objectives for 2014 and improved its profitability, in particular in On-site Services. We can also note strong momentum in Benefits and Rewards Services. Lastly, the share of facilities management services continues to increase, now representing 28% of our revenues, reflecting the increasing demand by our clients for integrated services.” Sodexo shares fell 0.91% to close at $97.63 yesterday.