Sodexo’s profits fall by 9.9%

Food services and facilities management group Sodexo has posted a 9.9% drop in its group net profit to €651m (£566m) for the year ending 31 August 2018.

Its operating profit also took a hit with a 16.1% decrease to €997m (£867m) and its organic growth was recorded at 1.6%, a slight fall from the previous year’s figure of 1.9%.

Sean Haley, the company’s chairman, said Sodexo had seen “renewed growth” in its education business through state school contracts. It also said its acquisition of the Good Eating Company had “strengthened” its corporate services business.

Sean Haley, regional chairman for Sodexo UK and Ireland, said: “The market has remained highly competitive in the UK and Ireland with continued emphasis on price and increased scrutiny on the value of outsourcing particularly in the public sector. Our investment in our people, consumer insight and acquisitions, supported by our sustainable and ethical business practices, has helped us to win business across all our sectors.

“In the coming year, we expect the market to remain competitive but we anticipate greater emphasis on quality and value by clients and consumers. We will continue to invest in our people, our values and doing business the right way to achieve continued growth across all sectors.”