Sodexo Confirms Targets as Profit Soars

PARIS--French catering and vouchers company Sodexo (SW.FR) on Thursday confirmed its targets for the fiscal year ending Aug. 31 after its net profit was lifted by the favorable impact of the weakening euro and cost cuts.

Net profit rose 23% in the six-months ending Feb. 28 to 343 million euros ($320 million), while overall revenue rose 7% to EUR9.93 billion. Operating profit was EUR620 million, an increase of 17%.

"Currency effects for the period were positive for most currencies, impacting revenues as well as other line items in the statement of income," the company said.

Excluding the currency effects, sales and acquisitions, revenue rose 2.2%.

The company expects organic revenue growth of around 3% in the year ending Aug. 31, 2015, and 10% growth in operating profit at constant exchange rates, excluding exceptional items.

Sodexo added its performance in the first half of the fiscal year includes EUR35 million in cost cuts from a program to improve operational efficiency. Total savings obtained since the program was launched in fiscal 2013 rose to EUR135 million, the company said.

-Write to Inti Landauro at [e-mail]

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