FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: SODEXHO ALLIANCE SA
CENTRAL INDEX KEY: 0001169715
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT SERVICES [8741]
IRS NUMBER: 000000000
FISCAL YEAR END: 0831
FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act SEC
FILE NUMBER:
FILM NUMBER:
BUSINESS ADDRESS:
STREET 1: 3 AVENUE NEWTON
STREET 2: 78180 MONTIGNY-LE-BRETONNEUX
CITY: FRANCE
STATE:
ZIP: 00000
BUSINESS PHONE: 0113313085
6-K
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
November 18, 2003
SODEXHO ALLIANCE SA
3, avenue Newton
78180 Montigny-le-Bretonneux
France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
Contents: Press Release
EXHIBIT LIST
Exhibit Description
99.1 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SODEXHO ALLIANCE SA
By: /s/ Sian Herbert-Jones
-------------------------------
Name: Sian Herbert-Jones
Title: Chief Financial Officer
Date: November 18, 2003
This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995. These
include, but are not limited to, statements regarding anticipated future
events and financial performance with respect to our operations.
Forward-looking statements can be identified by the fact that they do not
relate strictly to historical or current facts. They often include words like
"believe," "expect," "anticipate," "estimated" , "project " , "plan" "pro
forma," and "intend" or future or conditional verbs such as "will,"
"would," or "may." Factors that could cause actual results to differ
materially from expected results include, but are not limited to, those set
forth in our Registration Statement on Form 20-F, as filed with the Securities
and Exchange Commission (SEC), the competitive environment in which we operate,
changes in general economic conditions and changes in the French, American
and/or global financial and/or capital markets. Forward-looking statements
represent management's views as of the date they are made, and we assume no
obligation to update any forward-looking statements for actual events
occurring after that date. You are cautioned not to place undue reliance on our
forward-looking statements.
2002/2003
FULL YEAR RESULTS
Paris, November 14, 2003 - The Board of Directors of Sodexho Alliance met on 12
November 2003 under the chairmanship of Pierre Bellon, to close the accounts for
the year ended August 31, 2003.
Sodexho Alliance reported consolidated revenues of 11.7 billion euro and Group
net income of 162 million euro. The Board of Directors has determined that with
this performance, Sodexho's teams succeeded in overcoming unfavorable economic
conditions in a difficult political climate.
As a result of the appreciation of the euro against other currencies, currency
conversion had a negative effect on all income statement line items. However,
these exchange rate variations do not result in operating risk because both the
receipts and expenses of each of our subsidiaries are in the same currency,
unlike exporting businesses.
2002-2003 Financial Statements
In millions of euro
Variation Variation
Fiscal year Fiscal year at current at constant
2002-2003 2001-2002 rates rates
Revenues 11,687 12,612 - 7.3% 2.7%
EBITA 514 528 - 2.6% 9.8%
Net exceptional
income(expense) 1 23 * *
Group net income 162 183 - 11.3% - 2.2%
Earnings per
share before
goodwill
amortization
(in euro) 1.41 1.58 - 10.6% - 1.8%
Earnings per
share after
goodwill
amortization
(in euro) 1.02 1.15 - 11.4% - 2.3%
* Not significant.
During the year, revenues declined by 7.3% due to a negative currency exchange
rate impact of 10.0%. Organic growth of 3.1% compared favorably with that of the
prior year, which was 1.9%.
o In Food and Management Services, organic growth of 2.9% included 2.6%
in the Healthcare segment, 2.9% in Education and 3.1% in Business and
Industry. The year was noteworthy for the opening of Defense segments
in the United States and Sweden. Since Defense is included in the
Business and Industry segment, its development and the signing of
significant contracts have contributed to the return to growth in this
segment.
o In Service Vouchers and Cards, organic growth reached 11.4% due to good
commercial development and to new services provided to existing
clients.
EBITA amounted to 514 million euro, decreasing by 2.6%. However, at constant
exchange rates it improved by 9.8%. The EBITA margin was 4.4%, versus 4.2% in
fiscal year 2001-2002. This improvement is explained by the first positive
effects of our action plans to improve the profitability of our subsidiary in
the United Kingdom and by a net improvement in our profitability in Continental
Europe and North America.
Group net income declined by 11.3%, but it is comparable to that of the prior
year calculated at average exchange rates for fiscal year 2002-2003.
Since the number of shares outstanding did not vary significantly during the
year, earnings per share declined by 11.4%, but by only 2.3% at constant
exchange rates.
Operating cash flow totaled 390 million euro, a level comparable to fiscal year
2001-2002, despite the unfavorable variation in currency exchange rates of 13%,
thus confirming the Group's capacity to generate cash.
Our net debt declined by 162 million euro, of which 82 million euro resulted
from exchange rates prevailing at the end of the fiscal year. As such, net debt
totaled 1,201 million euro and represents less than 52% of shareholders' equity
including minority interests.
Following the closing of the accounts, which reflected net income excluding
currency conversion impacts comparable to that of the prior year, and after
taking account of the Group's excellent financial model, the Board of Directors
will ask shareholders to approve at the Annual Meeting on February 3, 2004 a net
dividend of 0.61 euro per share, the same dividend per share as last year. The
dividend payment date will be March 4, 2004.
NEW CONTRACTS
During fiscal 2003, we signed several new contracts, including, for example, in
Food and Management Services:
o In North America, Sony, General Mills, a national contract with Hewlett-
Packard, the University of Connecticut, the Atlanta Public School District
in Georgia and the Medical Center of Louisiana
o In Continental Europe, Wal-Mart in Germany, Banco Santander in Spain, the
public schools of Budapest and the Chenieux Clinics in Limoges
o In the United Kingdom and Ireland, GlaxoSmithKline in London and the Deepcut
Garrison
o In Latin America, Carrefour in Chile and PepsiCo in Venezuela
o In China, Motorola and the Jinshan and Dacang hospitals
In Service Vouchers and Cards, new contracts were signed with the SNBC in
Belgium, the Health Ministry in Venezuela and General Motors in Mexico.
OUTLOOK
The outlook is good. The potential market to conquer is large in all of our
activities and in the countries where Sodexho does business. This growth
potential is estimated at more than 380 billion euro.
Sodexho is number one worldwide in the segments with the greatest potential:
Healthcare, Seniors, Education and Defense.
In addition, Sodexho's financial model is excellent. The activities chosen are
not capital intensive; for fiscal year 2002-2003, net capital expenditures
represented only 1.9% of revenues. Operating cash flow was 390 million euro.
This allows us to finance growth, reimburse debt and reward shareholders.
Based on current information and today's economic climate, at the November 12,
2003 meeting, the Board of Directors fixed and confirmed the following minimum
objectives for fiscal year 2003-2004:
o Organic growth in revenues equal to that of fiscal year 2002-2003
o EBITA of 550 million euro, which corresponds to an EBITA margin of 4.6%
o Growth in Group Net Income, excluding exceptional items, of 5%
These objectives are based on the exchange rates used in the fiscal year
2002-2003 income statement.
In order to attain or exceed these objectives, our strategy is confirmed. It
rests upon six strategic objectives:
o Accelerate organic growth
o Improve our human resources planning
o Improve operational management
o Improve cash flow
o Reinforce control
o Encourage transparency and communication
Group management will focus energies within the Group to improve Sodexho's
performance as compared to that of its competitors.
The Board of Directors has expressed its confidence in the Group's future
because Sodexho's strengths are numerous:
Sodexho's values: service spirit, team spirit, and the spirit of progress.
Sodexho's mission: "Improve the quality of daily life," which gives meaning
to all of its team members.
Sodexho's worldwide network and its presence in 76 countries.
Sodexho's strong competitive positions.
Sodexho's excellent financial model.
The Board of Directors would like to thank our clients for their continued
trust, our people who maintain their professionalism and efficiency every day to
ensure our success around the world, and our shareholders for their loyalty.
About Sodexho Alliance
Founded in Marseille in 1966 by Chairman and Chief Executive Officer Pierre
Bellon, Sodexho Alliance is the world's leading provider of food and
management services. With more than 308,000 employees on 23,900 sites in 76
countries, Sodexho Alliance reported consolidated sales of 11.7 billion
euros for the fiscal year that ended on August 31, 2003. The Sodexho
Alliance share has been listed since 1983 on the Euronext Paris Bourse,
where its market value totals 3.9 billion euros. The Sodexho Alliance share
has been listed since April 3, 2002, on the New York Stock Exchange.
Press Relations : Jerome Chambin
Tel : + 33 (1) 30 85 74 18 - Fax : + 33 (1) 30 85 52 32
E-mail: jerome.chambin@sodexhoalliance.com
Investors Relations : Jean-Jacques Vironda
Tel : + 33 (1) 30 85 29 39 - Fax : +33 (1) 30 85 50 05
E-mail : jean-jacques.vironda@sodexhoalliance.com