Vending

Aramark lifts Q1 2022 sales, earnings on COVID recovery

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February 8, 2022

Aramark Corp. lifted its sales and earnings for Q1 2022 over the prior year's first quarter as the company recovered from COVID setbacks, according to an earnings release.

• Consolidated revenue rose 44% from $2.7 billion in Q1 2021 to $3.95 billion in the quarter ending Dec. 31, 2021. Organic revenue, which adjusts for the effect of currency translation and the Next Level Hospitality acquisition, improved 41% year-over-year with growth in all segments.
• Net income improved from an $81.38 million loss to a $42.7 million gain in the comparative quarters.
• Basic and diluted earnings per share both rose from a 32-cent loss to a 17-cent gain.
• Adjusted EPS rose from a 31-cent loss to a 22-cent gain.
• A steadily improving pace of account re-opening activity and pricing pass-through, as well as the benefit from new client wins, resulted in consolidated revenue at 93% and organic revenue at 92% of pre-COVID levels.
• Organic revenue for U.S. food and support services increased 61% compared to the first quarter last year.
• Organic revenue for international food and support services rose 28% year-over-year and delivered significant improvement compared to the preceding quarter through a combination of pricing pass-through, new account wins and gradual account re-opening activity, most notably within Europe driven by the sports and entertainment and education businesses. China, Chile and Spain continued to outperform pre-COVID levels on a constant-currency basis with double-digit growth in revenues compared to the first quarter of fiscal 2019.

Shares traded today at $37.15 against a 52-week range of $31.22-$43.12.

The $3.95 billion in quarterly revenue beat analyst expectations by $160 million while the non-GAAP EPS of 22 cents was in line with expectations, according to Seeking Alpha.

The company expects 2022 organic growth revenue between 23% and 27%, revenue of $20 billion or more and adjusted EPS of $3.35-$3.65.

"I am grateful to the Aramark team around the world and their commitment to our hospitality culture," said CEO John Zillmer in the press release. "Their ongoing dedication is evident in our financial performance, with organic revenue reaching 92% of pre-COVID levels in the first quarter, while effectively managing through a heightened inflationary environment."

For an update on how the coronavirus pandemic is affecting convenience services, click here.