Vending

Aramark posts strong Q2 2023 results

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May 9, 2023

Aramark Corp. reported Q2 2023 revenue and income gains, driven by pricing and new business, according to a press release. Highlights include:

Consolidated revenue rose 19% from $3.86 billion in Q2 2022 to $4.6 billion in the quarter ending March 31, 2024, driven by net new business, pricing and base business growth. A stronger dollar in the period impacted revenue results by $76 million, largely offset by the $67 million revenue contribution from Union Supply Group, which was acquired in June 2022.
Net income rose from $35.54 million to $55.88 million in the comparative quarters.
Basic and diluted EPS both rose from 14 cents to 21 cents.
Adjusted EPS rose 38% to 28 cents.
Organic revenue, which adjusts for the effect of currency translation and certain acquisitions, grew 19% year-over-year compared to the prior year period.
Food and facility services in the U.S. revenue increased to $2.84 billion primarily as a result of strong net new business growth and client pricing. In addition, revenue growth was driven by higher per capita spending in the sports and entertainment business and greater return-to-work activity in business and industry. Education experienced strong retail and catering in collegiate hospitality, slightly offset by the end of universal government-sponsored programs in student nutrition at the end of June 2022.
Food and facility services international grew revenue to $1.07 billion due to contributions from net new business, client pricing and ongoing base business growth across all geographies, particularly within Germany, Canada and South America.

Shares traded today at $35.48 against a 52-week range of $28.74-$45.72.

The $4.6 billion in quarterly revenue beat analyst expectations by $210 million, while the non-GAAP EPS of 28 cents beat expectations by 2 cents, according to Seeking Alpha.

"Now halfway through the fiscal year, we continue to make progress on our strategic priorities, resulting in strong business performance, additional balance sheet optimization, and positioning the uniforms services spin-off for success," John Zillmer, CEO, said in the press release.

The company expects organic revenue growth of more than 13% for fiscal 2023 and adjusted operating income growth of around 32%.