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
November 15, 2002
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: Press Release
EXHIBIT LIST
Exhibit Description
99.1 Press Release
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: November 15, 2002
EX-99.1
PRESS RELEASE
Exhibit 99.1
[LOGO SODEXHO ALLIANCE]
2001/2002 Full-Year Results
Growth in Earnings Per Share
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.
Paris, France, November 15, 2002 - The Board of Directors of Sodexho Alliance
met, on 13 November 2002, under the chairmanship of Pierre Bellon to close
the accounts for the year ended August 31, 2002.
In a depressed global business environment, Sodexho Alliance reported
consolidated revenues of 12.6 billion euros and EBITA of 528 million euros,
representing an EBITA margin of 4.2%.
During the past two years, Sodexho has strengthened its position as the
second-largest issuer of Service Vouchers and Cards and worldwide leader in
Food and Management Services, particularly in the segments with the highest
growth potential : Healthcare, Seniors and Education.
Sodexho employs 315,000 people on 24,700 sites in 74 countries.
Chief Financial Officer Sian Herbert-Jones presented the Group's 2001/2002
financial statements :
2001/2002
Financial statements
in millions of euros FY FY %
2001/2002 2000/2001 change
Revenues 12,612 11,943 6%
EBITA 528 586 -10%
Net exceptional income (expense) 23 (51) NM
Group net income 183 138 33%
Earnings per share before goodwill 1.58 1.31 20%
amortization (in euros)
Earnings per share after goodwill 1.15 1.00 15%
amortization (in euros)
During the year, revenues increased by 6% (8 % at constant exchange rates)
and Group net income rose by 33% (35 % at constant exchange rates) .
EBITA amounted to 528 million euros, decreasing by 10 % (7% at constant
exchange rates) , mainly because of a sharp deterioration in our UK subsidiary's
results. Our consolidated EBITA margin was 4.2% (or 4.7% excluding the UK),
versus 4.9% the year before.
Exceptional income totaled 23 million euros. The two main items were the sale
of Lockhart in late May, which generated a capital gain of 49 million euros
(37 million Euros after taxes), and losses from Land Technology amounting to
32 million Euros (22 million euros after taxes).
Following the share issues in July 2001 and October 2001 (concerning the
International Savings Plan offered to employees in 22 countries), the average
number of shares outstanding increased by nearly 15%.
Earnings per share rose 20% before goodwill amortization and 15% after goodwill
amortization.
Free cash flow amounted to 351 million euros, enabling the Group to finance
organic growth, pay down debt and propose an increase in the dividend.
Exchange rates prevailing at the closing date increased net debt by 47 million
Euros. Despite this, Group net debt was reduced by 205 million Euros and
totaled 1,361 million Euros, as at August 31, 2002, or 55 % of Group
shareholders' equity.
Albert George, Directeur General Delegue of Sodexho Alliance, commented on
the Group's performance, noting that net income growth was achieved in a
sluggish global business environment.
Organic revenue growth totaled 1.9%.
Private companies have been the hardest hit by the global slowdown, with
site closings, massive layoffs and cutbacks in client expenditures leading
to a reduction in the number of customers and lower demand for catering
services. The Group's overall results suffered mainly because of the decline
in revenues and EBITA in the Business & Industry segment.
The Education and Healthcare segments continued to enjoy steady growth,
with revenues rising 5% and 6% respectively. The Service Vouchers and Cards
business pursued its remarkable expansion In the United States, although
revenues from Business & Industry declined by 8%, our EBITA held firm.
In the United Kingdom and Ireland, however, the rapid deterioration in
results had an even greater impact, given that more than two-thirds of our
revenues are generated in Business & Industry. The disappointing
performance in the United Kingdom led Group management to appoint a new
management team in April 2002. An action plan has been finalized. Returning
to a satisfactory EBITA margin is our top priority for the next two or three
fiscal years. This will involve in-depth programs to make our contracts more
profitable, to train and motivate our teams, to tighten onsite management of
food and personnel costs, and to reduce operating overheads.
During the year, Sodexho won a number of very important new contracts:
In Food and Management Services
United States
Metropolitan Life Insurance (MetLife); 18 sites ; 15,000 people ; multi-services
Miramar Air Station (US Marines Corps.),San Diego CA;50,000 people;food services
United Kingdom
Bentley Motor Cars, Crewe ; 2,000 people ; multi-services
Crown Woods, London ; 2,300 students ; food services
France
Caisse Nationale des Caisses d'Epargne, Paris ; prestige food services
Monaco Town Hall ; 3,000 people ; food services
China
HSBC ; 1,000 people ; food services
Germany
Nokia in Ulm, Dusseldorf and Bochum ; 4,300 people ; multi-services
Netherlands
Royal Dutch Shell Group, The Hague ; 2,000 people ; food services
Remote Sites
Australia
Argyle Diamond Mine, Western Australia ; 530 people ; multi-services
United States
Nabors Offshore, Offshore Louisiana ; 43 sites ; 1,400 people ; multi-services
Service Vouchers and Cards
Spain
Telefonica ; 7,000 beneficiaries ; Restaurant pass
France
Rhone Alpes Regional Council ; 250,000 beneficiaries ; Rhone Alpes Plus card
Other highlights:
o Sodexho Alliance ADS listed on the New York Stock Exchange
(Ticker symbol NYSE: SDX).
o One billion Euro bond issue.
Dividend
At the Annual Meeting on February 4, 2003, the Board of Directors will ask
shareholders to approve a dividend per share before tax credit of 0.61 euros, a
9% increase over the previous year. The dividend payment date is March 4, 2003.
Outlook
Pierre Bellon commented on the Group's prospects :
"The outlook is good. We have enormous growth potential that we estimate at
380 billion euros. To keep increasing our earnings and accelerate organic
revenue growth, we need to continue to :
o improve our client retention,
o enlarge the services we provide on each of our existing sites,
o win new clients with our innovative and profitable service offerings,
particularly with those who have not yet outsourced the services we
provide.
In 35 years, our revenues have increased by a factor of 20,000. This successful
performance has been driven by our desire to grow,our steady focus on client
needs, the professionalism of our people and solid financial control over
our development in activities that are not capital-intensive and that generate
free cash flow. We will pursue this strategy.
Although the global economy will remain depressed, we have set a Group-wide
organic revenue growth objective of 5% to 6% for 2002/2003, roughly three
times our 2001/2002 rate. We are progressively returning to the level of
organic growth we enjoyed in previous years.Our EBITA margin objective is 4.7%.
As for Group net income, our objective for 2002/2003, at constant exchange
rates and excluding exceptional items, is 210 million Euros.
The Board of Directors would like to thank our clients for their continued
trust, our people who maintain their efficiency every day to ensure our
success around the world for their dedication, and our shareholders for their
loyalty."
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 3.4 billion euros. The Sodexho Alliance share has been listed
since April 3, 2002, on the New York Stock Exchange.
Media Relations: Jerome Chambin
Tel: +33 130 85 74 18
Fax: +33 130 85 52 32
E-mail: jerome.chambin@sodexhoalliance.com
Investor Relations: Jean-Jacques Vironda
Tel: +33 130 85 72 03
Fax +33 130 85 51 81
E-mail: jeanjacques.vironda@sodexhoalliance.com