Vending

Aramark lifts Q4 2022 results driven by pricing, business growth

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February 9, 2023

Aramark Corp. lifted its Q4 2022 revenue and earnings, boosted by pricing and business growth, according to an earnings report.

Highlights include:

• Consolidated revenue rose 17%, from $3.9 billion in Q4 2021 to $4.6 billion in the quarter ending Dec. 30, 2022, driven by net new business, pricing and base business growth. A stronger dollar in the period impacted revenue results by $129 million, partially offset by the $72 million contribution of Union Supply Group, which was acquired in June 2022.
• Organic revenue, which adjusts for the effect of currency translation and certain acquisitions, grew 18% year-over-year compared to the prior year period.
• Net income rose from $42.7 million to $73.6 million in the comparative quarters.
• Basic EPS rose from 17 cents to 29 cents while diluted EPS rose from 17 cents to 28 cents.
• Adjusted net income rose from $58.6 million to $107.7 million in the comparative quarters.
• Adjusted EPS rose 91% for Q4 2022 to 44 cents.
• Food and facilities services in the U.S. increased due to base business volume recovery, primarily within the business and industry sector and sports and entertainment business, pricing, as well as leverage from operational and administrative cost management across wide-ranging revenue growth that more than offset higher food and labor costs associated with inflation and start-up costs from new client account openings.
• Food and facilities services international also improved primarily from base business volume recovery within business and industry, pricing, and leverage from administrative cost management across strong revenue growth, in addition to operating efficiency initiatives, particularly within continental Europe.

The company declared an 11-cent-per-share dividend payable March 8 for shareholders of record Feb. 22.

Shares traded today at $38.873 against a 52-week range of $28.74-$45.72.

The quarterly revenue of $4.6 billion beat analyst expectations by $50 million and the non-GAAP EPS of 44 cents beat expectations by one cent, according to Seeking Alpha.

"We began the year as we ended the last one, focused on our principal strategic objective: to drive profitable growth," John Zillmer, CEO at Aramark, said in the press release. "Our performance in the quarter reflected continued financial and operational momentum in the business despite a challenging macro-environment, which is a testament to the commitment of our talent across the globe to provide exceptional service to clients."