Sodexo meets its 2009 forecasts, 2010 seen flat

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France's Sodexo said it was on track to meet medium-term objectives after reporting fiscal 2009 results in line with its guidance on Tuesday, though it said the economic crisis would stall sales growth in 2010.
The catering services and vouchers company reported annual sales of 14.7 billion euros (USD22.01 billion), up 2.5% year-on-year on an like-for-like basis, and operating profit of 746 million euros, up 8.1%.
Sodexo's own guidance was for like-for-like sales growth of 2 to 5% and operating profit between 730 and 760 million euros.
Net profit came in at 393 million euros, up 4.5%.
Sodexo also said it would maintain its dividend at 1.27 euros per share.
In a statement, Sodexo Chief Executive Michel Landel said he was "fully confident" of the company's ability to reach medium-term targets of annual average sales growth of 7% and an operating margin of 6%.
But he said that revenues in 2010 at constant exchange rates would likely stay at 2009 levels as a result of economic pressures. Sodexo sees the 2010 operating profit at between 750 and 770 million euros.
"The crisis has slowed our new business development and weighed on comparable unit growth on existing sites," said Landel.
Sodexo has two business segments, food services and vouchers. The company said food services had seen stable organic growth in Europe in 2009 while markets outside North America and Europe enjoyed double-digit growth.
The voucher business, which accounts for one third of operating profit, saw organic growth of 14%.
Sodexo's fiscal year ended on August 31.