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Aramark Q4 Profit Climbs, Revenue Dips

Posted On: 11/20/2015

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TAGS: Aramark Holdings Corp., Aramark fourth-quarter, vending, micro market, foodservice

PHILADELPHIA -- Aramark Holdings Corp. posted fourth-quarter profit of $57.2 million, or 23¢ a share, up from $44.5 million, or 18¢ a share, a year earlier. Revenue fell 10% to $3.54 billion.

Organic revenue was flat in its fiscal fourth quarter, ended Oct. 2. A 2% decline in the North American food and support services segment offset 3% international foodservice revenue growth and a 5% sales rise in its uniform segment. Aramark's North America segment accounts two-thirds of overall revenue.

The Philadelphia-based foodservice giant attributed the sales drop partially to a shift in the reporting calendar that added an extra week to 2014. The latest quarter was negatively impacted by a week less of both sales and adjusted operating income.

Aramark has also been struggling with a stronger U.S. dollar. It generates a significant amount of overall revenue outside of the U.S., and said the stronger dollar hit fiscal fourth-quarter earnings by 2¢ a share.

For the year, the company posted adjusted earnings of $1.57 a share, up from $1.45 a share and on the high end of its forecast of $1.50 to $1.60.

Aramark forecast that currency volatility in 2016 would present a roughly 3¢ per share headwind to adjusted earnings, producing annual profit between $1.65 and $1.75 a share.