Sodexo sales up on rugby

Sodexo, the world's second-largest catering company, said first-half sales rose 3.8 percent after rugby fans bought travel packages for the sport's World Cup.

Sales climbed to 7.08 billion euros in the six months through February from 6.82 billion euros a year earlier, the company said yesterday in a statement. Revenue gained 9.2 percent excluding acquisitions and currency movements, and the caterer maintained forecasts for annual revenue and profit growth.

Sodexo organized travel and corporate hospitality packages for the World Cup and served food at some of the French stadiums where the tournament took place. The Montigny-le-Bretonne, France-based firm also signed up new customers during the half including the German division of Procter & Gamble Co's Gillette unit.

"Organic growth continues to gather pace," Chief Executive Officer Michel Landel in the statement, referring to sales excluding takeovers and exchange rates. "We accelerated penetration of growth markets such as healthcare and education."

Sodexo added 26 cents, or 0.7 percent, to 39.60 euros at 9:40 am in Paris. The stock has dropped about 6 percent this year, compared with an 8.2 percent gain by bigger rival Compass Group Plc, which has sold units, cut jobs and exited markets to widen margins.

Customers bought 185,000 World Cup travel packages and 110,000 corporate hospitality packages, the French caterer said in October.

Agencies

(China Daily 04/03/2008 page16)