Sodexo reports profit up 10%, raises forecasts
French catering services group Sodexo said on Thursday its first-half net profit and sales rose more than 10 percent, allowing it to confirm its earnings targets for the full year.
Sodexo, which provides catering services to businesses and institutions, said it had a net profit of 252 million euros ($368 million) in the six months to end-February, up 11 percent, as sales rose 10.4 percent to 8.27 billion euros.
For its full financial year to November 2011, the company said it was increasing its sales growth forecast to 4.5 percent from the 3.0-4.0 percent given in November 2010.
Operating profit, which rose 8.5 percent in the first half, should increased 10 percent for the full-year, it added.
The company said the forecast upgrades reflected a strong order book, with very strong growth seen in the emerging markets led by Brazil, India and China.
Additionally, orders in the US and Britain were up sharply.
Sodexo said it expected its food input costs to increase by 3.0-4.0 percent over the next 12 months and such inflation would inevitably crimp its performance.
The company said it remained confident in the medium-term outlook based on sales growth of 7.0 percent and an operating profit margin of 6.0 percent.
© 2011 AFP