FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: SODEXHO ALLIANCE SA
CENTRAL INDEX KEY: 0001169715
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT SERVICES [8741]
IRS NUMBER: 000000000
FISCAL YEAR END: 0831
FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act SEC
FILE NUMBER:
FILM NUMBER:
BUSINESS ADDRESS:
STREET 1: 3 AVENUE NEWTON
STREET 2: 78180 MONTIGNY-LE-BRETONNEUX
CITY: FRANCE
STATE:
ZIP: 00000
BUSINESS PHONE: 0113313085
6-K
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
July 9, 2003
SODEXHO ALLIANCE SA
3, avenue Newton
78180 Montigny-le-Bretonneux
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
Contents: Fiscal 2002-2003 nine month revenues
EXHIBIT LIST
Exhibit Description
99.1 Fiscal 2002-2003 nine month revenues
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SODEXHO ALLIANCE SA
By: /s/ Sian Herbert-Jones
-------------------------------
Name: Sian Herbert-Jones
Title: Chief Financial Officer
Date: July 9, 2003
EX-99.1
Fiscal 2002-2003 nine month revenues
Exhibit 99.1
Fiscal 2002-2003 nine month revenues
Code EURONEXT: EXHO.PA / Code NYSE: SDX
This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995. These
include, but are not limited to, statements regarding anticipated future
events and financial performance with respect to our operations. Forward-
looking statements can be identified by the fact that they do not relate
strictly to historical or current facts. They often include words like
"believe", "expect", "anticipate", "estimated", "project", "plan", "pro forma"
and "intend" or future or conditional verbs such as "will", "would" or "may".
Factors that could cause actual results to differ materially from expected
results include, but are not limited to, those set forth in our Registration
Statement on Form 20-F, as filed with the Securities and Exchange Commission
(SEC), the competitive environment in which we operate,changes in general
economic conditions and changes in the French, American and/or global financial
and/or capital markets. Forward-looking statements represent management's
views as of the date they are made, and we assume no obligation to update any
forward-looking statements for actual events occurring after that date. You
are cautioned not to place undue reliance on our forward-looking statements.
Fiscal 2002-2003 nine month revenues
Paris, France - July 9, 2003 - Sodexho Alliance's consolidated revenues reached
EUR 9.1 billion for the first nine months of fiscal 2002-2003, which ended May
31. As compared to the prior-year period, revenue growth evolved as follows:
o Organic growth: + 2.9%
o Acquisitions, net of divestitures: - 0.3%
o Currency effect: - 10.4%
The euro's sharp appreciation against other currencies led to a negative
currency effect of 10.4%, including 15% from the US dollar. However, this is
only a conversion effect since our subsidiaries' operating revenues and
expenses (food and labor costs) are denominated in the same currency. This
currency effect resulted in a 7.8% decline in reported revenues for the nine
month period.
Breakdown of revenues by region and activity
Activity Revenues Organic
in EUR growth
millions
Food and Management Services 8,425 + 2.6%
North America 4,297 + 3.5%
Continental Europe 2,689 + 3.3%
United Kingdom & Ireland 1,085 - 3.3%
Rest of the World 354 + 5.3%
Remote Sites 404 + 3.9%
Service Vouchers and Cards 186 + 14.2%
- Food and Management Services
In Food and Management Services, organic growth in revenues by segment
amounted to 2.2% in Business and Industry (or a negative 0.5% excluding
Defense), 2.8% in Healthcare and 3.2% in Education. In the latter two
segments, clients often prefer to retain employees on their payrolls in
food and multi-services contracts. Our growth is therefore greater than
is reflected in these figures.
- North America:
Revenues in the Healthcare and Seniors segment increased by 3%,
reflecting efforts to increase revenues on existing sites.
A number of major contracts were awarded during the period, notably
with the Medical Center of Louisiana in New Orleans and the Glendale
Adventist Medical Center (N.Y), which will begin to produce results
in fiscal 2003-2004.
In the Education segment, revenues increased by 3.9%, a clear
improvement from the first half of the year, led by revenue growth
on existing sites. In addition, we expanded our range of services in
a number of contracts, for example with the Guilford and Walton
County School Districts, Bennett College and the University of Tampa.
Business & Industry revenues increased by 3.5% (or declined by 1.3%
excluding the Defense segment) as a result of the October 1, 2002
commencement of the US Marine Corps contract in the United States.
We also opened a large number of food service and vending contracts,
notably with Lehman Brothers and General Mills, as well as a
nationwide contract with Hewlett Packard.
- Continental Europe :
Organic revenue growth was 3.3%, including 4.7% in Healthcare, 2.4%
in Education and 3.0% in Business & Industry.
The commencement of contracts with the Swedish army and the City of
Stockholm in Healthcare and a number of successes in Business &
Industry, including Vattenfall, Nordea and Nokia, fueled strong
organic growth in Northern Europe for the nine month period. Other
significant contract wins included IBM in France, Norway, Denmark,
Sweden and Italy, and the European Commission in Brussels.
The labor strikes in France during May principally impacted the
Education segment and weighed on our third quarter growth and
results.
- United Kingdom & Ireland
On a constant consolidation and exchange rate basis, revenues
declined by 3.3%, mainly due to:
- the economic slowdown in the Business & Industry segment
- the renegotiation of certain contracts by the new management team
- the continued termination of non-profitable contracts in the hotel
sub-segment.
However, we enjoyed good growth in the Defense segment.
- Remote Sites
Organic growth in revenues amounted to 3.9%, as a result of strong
performance in Australia and in Latin America despite a sharp
slowdown in drilling operations in the Gulf of Mexico.
- Service Vouchers and Cards
The Service Vouchers and Cards business reported organic revenue growth
of 14.2% in the first nine months. This increase was driven by a strong
marketing performance in our traditional activities (food vouchers and
cards) and in new services for existing clients.
For fiscal 2002-2003, our group net income at constant exchange rates and
excluding exceptional items will not exceed the 200 million euros that was
announced by Pierre Bellon in May.
At current exchange rates, the negative currency effect for fiscal 2002-2003
would be approximately 20 million euros.
In conclusion, in a difficult global economic environment, our performance
will continue to progress as a result of:
- Improving our client retention rate
- Developing revenues on existing sites
- Winning new contracts.
About Sodexho Alliance
Founded in Marseille in 1966 by Chairman and Chief Executive Officer Pierre
Bellon, Sodexho Alliance is the world's leading provider of food and
management services. With more than 315,000 employees on 24,700 sites in 74
countries, Sodexho Alliance reported consolidated sales of 12.6 billion
euros for the fiscal year that ended on August 31, 2002. The Sodexho
Alliance share has been listed since 1983 on the Euronext Paris Bourse,
where its market value totals 4.0 billion euros. The Sodexho Alliance share
has been listed since April 3, 2002, on the New York Stock Exchange.
Investor Relations : Jean-Jacques Vironda
Tel : + 33 (1) 30 85 72 03
Fax : + 33 (1) 30 85 51 81
E-mail : jeanjacques.vironda@sodexhoalliance.com
Press Relations : Jerome Chambin
Tel : + 33 (1) 30 85 74 18
Fax : + 33 (1) 30 85 52 32
E-mail : jerome.chambin @sodexhoalliance.com
In the first six months of fiscal 2002-2003,
Sodexho Alliance consolidated revenues reached euro 6.2 billion. As compared to
the prior year period, revenue growth evolved as follows:
o Organic growth: 2.9%
o Acquisitions, net of divestitures: -0.2%
o Currency effect: -8.8%
Organic growth of 2.9% was offset by the strong appreciation of the euro
against other currencies, in particular the US dollar, which led to a
negative currency conversion effect in our consolidated accounts of 8.8%.
This is only a conversion effect since in each of our subsidiaries income from
our services and the corresponding expenses (cost of goods and labor) are
expressed in the same currency. This currency effect results in a net total
variation in our revenues of -6.1% for the first half of 2002-2003.
Half-year revenues by region and activity
------------------------------------------------------------------------------
Activity Revenues Organic
(millions of euro) Growth
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Food and management services 5 739 + 2,6 %
North America 2 950 3,3 %
Continental Europe 1 799 4,3 %
United Kingdom and Ireland 756 -4,4 %
Rest of the world 234 6,0 %
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Remote Sites 270 + 0,6 %
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Service Vouchers and Cards 127 + 17,9 %
------------------------------------------------------------------------------
o Food and management services
In Food and Management Services, organic growth by segment was 3.8% in
Healthcare, 3.4 % in Education and 1.5% in Business and Industry
(-1.3 % excluding Defense).
North America
Revenues for the Healthcare and Seniors segment increased by 2.9%, reflecting
our teams' efforts to develop growth on existing sites and winning multi-
service partnership contracts with our clients. Some examples include Fairview
System in Minneapolis, the Children's Hospital in Seattle and Providence
Medical Center in Kansas City where staff remain directly on the client's
payroll. Revenues do not therefore reflect our real economic development.
Despite the impact of snowstorm-related school closures on the East Coast of
the USA, the Education segment's revenues grew by 3.6%; we continue to expand
into multi-service with new clients such as Grace College, Tiffin University,
and Walton County School District and to increase existing sites' revenues
with adapted merchandising offers utilizing innovations, such as Cafe a la
Carte.
Revenues in the Business, Industry and Defense segment grew by 3.3% (-1.9 %,
excluding Defense). The effect of the national contract with Hewlett Packard
and several new contract openings, including Bell South, General Mills,
Nationwide Insurance Training Center and Sony Pictures, was more than offset
by the impact of the economic slowdown, most notably continued client
headcount reductions.
Since October 1, 2002, Sodexho has provided food service operations on 55 U.S.
Marine Corps sites. As a result of the recent deployment of U.S. Marines to
the Persian Gulf, only four U.S. mess halls have been temporarily closed. At
the same time our client has requested that we expand certain services. We
have established a strong relationship of mutual respect and true partnership
with the U.S. Marine Corps and they have recently assured to us that they are
satisfied with our performance and have no basis to cancel our contract.
Continental Europe
Organic growth reached 4.3%,with 8.2% growth in the Healthcare segment, 4.1%
growth in Education, and 2.9% growth in Business and Industry.
These increases mainly resulted from the commencement of a Healthcare
contract signed with the local municipality of Stockholm, a multi-service
contract signed with the Swedish army, and several significant successes such
as Sanofi-Synthelabo and Canon in France, Nuon in the Netherlands, Nokia in
Finland, Mobistar in Belgium and Santander Group in Spain.
United Kingdom and Ireland
As announced in November, priority has been given to improving profitability.
Excluding the impact of the sale of Lockhart and currency impacts, revenues
declined by 4.4%. The primary reasons for this include: continued layoffs by
our clients, site closures in the engineering and manufacturing sectors, the
impact of a lower prior year retention in Healthcare, and the decision made by
our new management team in the United Kingdom to exit certain unprofitable
contracts (most notably in the hotel sector).
o Remote Sites
Organic growth of 0.6% resulted from good performances in the North Sea
and Latin America, despite significantly diminished foraging activities in
the Gulf of Mexico.
o Service Vouchers and Cards
Organic growth continued steadily at 17.9% through the half-year arising from:
- The expansion of our line of service offerings to existing clients,
including Gift Pass, Training Pass, Food Pass and Restaurant Pass,
- The launch of new services such as Adviescheques (Consulting Pass) in
association with the Flemish government permitting small businesses to use
consultants,
- And client wins such as Business Objects in France and Pepsi in Hungary.
About Sodexho Alliance
Founded in Marseille in 1966 by Chairman and Chief Executive Officer Pierre
Bellon, Sodexho Alliance is the world's leading provider of food and
management services.With more than 315,000 employees on 24,700 sites in 74
countries, Sodexho Alliance reported consolidated sales of 12.6 billion euros
for the fiscal year that ended on August 31, 2002.The Sodexho Alliance share
has been listed since 1983 on the Euronext Paris Bourse, where its market value
totals 3.3 billion euro. The Sodexho Alliance share has been listed since
April 3, 2002, on the New York Stock Exchange.
Press Relations : Jerome Chambin
Tel: + 33 (1) 30 85 74 18 Fax: + 33 (1) 30 85 52 32
E-mail: Jerome.Chambin@sodexhoalliance.com
Investor Relations : Jean-Jacques Vironda
Tel: + 33 (1) 30 85 29 39 Fax: + 33 (1) 30 85 51 81
E-mail: Jean-Jacques.Vironda@sodexhoalliance.com