Global facility manager Sodexo has reported 1.9% decline in first quarter revenues for 2014, despite an upward organic growth trend.
The company blamed negative currency effects on the revenue fall of 94million euros compared to last year’s figure of £4.1billion (EU4.95billion)
Lower numbers of onsite food services, which includes North Sea oil and gas platforms, and clients’ cost-cutting measures across Europe, also contributed, the company said.
The biggest decline in revenue was recorded outside North America and continental Europe, with a 3.8% decline in remote sites revenue.
Simultaneously, Sodexo reported a 2.7% organic growth in the same period, due to an increased demand for its Quality of Life services, with a 20% organic growth from its Benefits and Rewards Services in Latin America.
“Sodexo continued to demonstrate robust organic growth in the first quarter,” commented Michel Landel, chief executive of Sodexo.
“Our unique quality of life service offering remains in strong demand among our clients. Our Benefits and Rewards Services also made a very good start to the year, boosted by a strong marketing dynamic in Latin America.”
The company maintained its 2014 financial outlook, forecasting between 2.5% and 3% organic growth and an 11% increase in operating profit.
Recommended for you
