ANNUAL REPORT 2006-2007

86
THE QUALITY OF LIFE ARCHITECT EXPERIENCING AND SHARING QUALITY OF LIFE
> ACCELERATION OF GROWTH IN REVENUES
Sodexo’s revenues increased by nearly 587 million euro
to 13,385 million euro over the prior year.
This increase in revenues comprises the following:
• organic growth: +8.4%;
• currency impact: -3.7%;
• changes in scope of consolidation: -0.1%.
Sodexo continued to implement its strategy during
fi scal 2007, achieving:
• a client retention rate of 93.9% (+0.1%), in line
with Fiscal 2006. Good progress was made
in North America, where the Group’s 95% target
was exceeded. Client retention also improved in
Continental Europe. However, the effect was offset
by contract expirations in Remote Sites and
the United Kingdom’s retention rate, which is still
too low;
• revenue growth on existing sites was over 5%, about
two-thirds of which resulted from implementation
of contractual indexation terms, especially in North
and Latin America;
• business development remained above 9%,
refl ecting good performances in all regions.
> GROWTH IN OPERATING PROFIT
Operating profi t rose by 5.7% to 640 million euro
over the prior year.
Fiscal 2006 operating profi t included two one-time items:
• a gain of 21 million euro on the disposition of
Spirit Cruises, a U.S.-based river and harbor
cruise business;
• a release of the 7 million euro provision for the U.S.
litigation, following fi nal resolution of the case.
Consequently, Sodexo reported numerous advances
in organic growth throughout the Food and Facilities
Management services activity, including:
• a rebound in organic growth in North America,
(up 8.8%), refl ecting acceleration across all segments;
• substantial expansion in Facilities Management
services in Continental Europe, resulting in organic
growth of 5.1%;
• confi rmation of a return to growth in United Kingdom
operations (up 6.1%);
• continuation of strong activity in the Rest of the World
(up 15.3%), with growth in Latin America, Asia,
Australia and in Remote Sites.
The Service Vouchers and Cards business also
confi rmed its dynamic growth profi le, with organic
revenue growth of 20.1%.
Excluding these items, operating profi t rose by 10.9%
at current exchange rates and by 14.5% at constant
exchange rates, exceeding the targets set by
the Group at the beginning of the fi scal year.
Operating margin was 4.8%, compared with 4.7%
in Fiscal 2006 (or compared to 4.5% after excluding
in the prior year the gain on the disposition of
Spirit Cruises and the release of the provision for
the U.S. litigation).