Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SODEXO. We currently have 4 research reports from 1 professional analysts.
|22Mar17 12:41||GNW||Sodexo announces changes to the Board committees|
|13Mar17 14:08||GNW||Sodexo joins forces with Xpenditure and iAlbatros to offer streamlined business travel and expense experience|
|07Mar17 07:41||GNW||Sodexo : Sodexo announces changes to the Group Executive Committee|
|22Feb17 09:00||GNW||La Poste and Sodexo extend contract with French Ministry of Defense providing postal services for French armed forces overseas|
|09Feb17 13:00||GNW||Sodexo Reveals Trends Shaping the Global Workplace in 2017|
|25Jan17 15:00||GNW||Sodexo earns highest marks in RobecoSAM's "Sustainability Yearbook" for tenth straight year|
|12Jan17 06:01||GNW||Sodexo: Q1 Fiscal 2017 impacted by expected high comparative base, annual objectives confirmed|
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North America and the Rugby World Cup offset the difficulties in Brazil
08 Jul 16
Sodexo has published its 9M 16 sales, up by 3.7% including 3.3% organic growth helped by the Rugby World Cup contract in the UK and Ireland (+2.5% growth excluding this impact). On a segment basis, On-site services (96% of sales) clocked organic growth of 3.2%, reflecting: 4% growth in North America, as expected in Corporate and Health Care; 18.1% growth in the UK with a €131m impact on sales due to Rugby and 8.4% growth of the other segments, especially in education with the end of the ramp up of big contracts; 1.8% growth in Continental Europe, which is still soft growth in spite of the positive effects of two extra working days in May, and reflecting a 2% decrease in France (c.15% of group sales) with the effects of [terrorist] attacks, strikes and bad weather. Note that the group has decided to be more selective and has cut some businesses in France; 3.9% decline in the Rest of the World with the effect of the continuing decrease in Remote Sites (+6.5% growth for the region excluding this element). Nevertheless, the group showed a stabilisation in Q3. The Benefits and Rewards Services is still a solid segment with 5.7% organic growth despite the slowdown in Brazil.
Strong prospects, despite a challenging Brazil and emerging countries
30 Nov 15
Sodexo posted upbeat FY15 results, pointing to an improvement in the operating leverage. The exit from unprofitable contracts, cost-cutting measures and the supportive momentum in North America have contributed to the rise in the EBIT margin (by 40bp to 5.8%). Organic sales came in 2.5% higher yoy, showing a sequential improvement throughout the year (+2.3% in Q1, +2.4% in H1, +2.2% in 9m), while reported sales jumped by +10%, fuelled by FX (+7.3% impact on FY15 sales). On-Site Services grew by 2.2%, on the back of popular integrated services, with a high facilities management component which made up for the slowdown in foodservices volumes. The Corporate Services division was the best performer (+3.9% lfl), boosted by the ramp-up of contracts in the UK which stood out, recording a +12.8% in sales lfl followed by North America (+1.5%, +17.9% reported). The poor trends in Foodservices reflects the pressure from clients which have been seeking to slash costs (headcount reductions, cost-cutting strategy), particularly in Europe (Continental Europe: +0.6% in sales lfl, -0.3% excl. FX). The Benefits & Rewards business performed well (+7.5% lfl in issue volume, +9.5% in sales), in spite of the poor momentum in LatAm. EBIT jumped by 18.3% reportedly (+11.9% excl. FX), backed by North America (+39.4% reported, +18.7% at CER) in particular which benefited from the deployment of standardised one-site contact management methods which helped to mitigate the impact of inflation. The UK & Ireland showed a 42.4% rise in EBIT reported (+28.8% excl. FX), fuelled by several major integrated services contracts which were in the start-up phase in FY14. The several cost-cutting measures announced as part of FY15 figures are expected to generate €200m of cost savings between 2015 and FY18, which should partially offset price pressures from clients. The group announced a €300m share buy-back programme in 2016 (c.2.4% of the share capital).
New York could join several US largest cities to increase the minimum wage
23 Jul 15
New York’s minimum wage for fast-food workers is set to almost double from $8.75 to $15 an hour (implying potentially 180,000 workers statewide) by the end of 2018 for the city and by mid-2021 for the rest of the state. This is what is claimed by a committee formed in May by the governor Andrew Cuomo and which does not need legislative approval but must be ratified by the state labour commissioner, which is highly expected. Several big US cities including Seattle, San Francisco and Los Angeles (and a month ago) have approved a minimum wage increase to $15 an hour (expected to be effective by 2021 in Los Angeles after growing progressively). Chicago is also considering raising its minimum wage to $15 an hour. This came after protests by low-wage employees of companies like Walmart (the largest private employer in the US) and McDonald’s swelled into several big US cities. The two groups have since pledged to increase their workers’ pay by $1-2 an hour, although contested by the $15 movement activists who see it as too small.
Poor visibility in Continental Europe and LatAm and flattish North America
08 Jul 15
Sodexo released its 9m consolidated revenues which highlighted a deceleration in the organic trend compared to H1's figure due to the challenging economic environment in Latin America and certain countries in Europe. The group's consolidated revenues delivered 2.2% LFL growth in 9m against +2.4% in H1. On-site Services (OSS, 96% of sales) experienced 1.9% organic growth in sales largely backed by the UK & Ireland (8.6% of On-site Services revenues), which showed acceleration throughout the year (+10% LFL vs +6.1% in Q1 and +8.4% in H1) where facilities management experienced strong demand, followed by the Rest of the World (+3.1%) as well as by the Corporate segment (+3.7% organic growth vs +0.4% and -0.3% for Healthcare & Seniors and Education, respectively). The North American region (39% of On-site Services sales) showed a flattish trend since the beginning of the fiscal 2015 year (+1.4% LFL vs +1.4% in Q1 and +1.5% in H1) despite solid dynamic growth in the corporate segment (+6% LFL), notably in Facilities Management which showed increased volumes. The region has also largely benefited from the strength of the dollar against the euro (+16.5% reported including a +15.4% impact from FX). In Continental Europe (33% of On-site Services sales), trends worsened and the region switched to negative territory although only moderately (-0.2% vs 0% in Q1 and -0.3% in H1 15). However, Latin America has been qualified as experiencing a particularly challenging environment, notably in Brazil and Chile. Benefits and Rewards Services (4.2% of sales but c.28% of group EBIT) delivered +9.1% growth LFL in sales and +14.5% reported, boosted by acquisitions (+3.7% impact on sales). The FY guidance has been maintained with an expected EBIT growth of +10% (excl. FX impact).
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
On the Beach - Sunny Times Forecasted
15 Mar 17
On the Beach is a leading online retailer of ‘mainstream’ short-haul beach holidays, primarily targeting customers in the United Kingdom under the "On the Beach" brand. It currently has a market share of the UK online short-haul beach holiday market of approximately 19per cent, with its two largest competitors being TUI Travel and Thomas Cook.
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - ScS Group - Strong progress on key growth initiatives albeit comps now toughen
21 Mar 17
Whilst interim results are complicated by timing differences around order deliveries (flattery of c£1.9m) and rephasing of marketing (drag of c£1.9m), adjusted EBITDA improved by c£1.7m on an underlying basis – moving ScS into positive territory in its historically loss-making first half. Good progress was made on all 4 growth strategies and it maintained its 5-star score on Trustpilot. Whilst LFL order intake is down c5-6% in current trading, this reflects weak retail park footfall in Feb (not a conversion issue) and it has seen an improvement since the start of March. This means it is on track to meet FY expectations. Reassuring dynamics on margins & costs may add to investor relief, with the shares on <2x EV/EBITDA.
N+1 Singer - Goals Soccer Centres - Good momentum under new team. It’s now all about delivery
21 Mar 17
2016 finals have come in marginally below consensus PBT forecasts but this should not detract from positive operational and strategic momentum. There is still much work to do, but the tenor of the results is encouraging and management signals a good start to FY17. The main surprise is news of a third USA site opening. We tweak our FY17/18 PBT forecast up by 2% and stay at Buy on recovery grounds with a 140p 12m TP.