Aramark Q1 Profit Climbs Revenue Remains Steady

PHILADELPHIA -- Aramark reported first-quarter income of $93 million, up from $85 million a year earlier, and sales of $3.7 million, level with last year's first quarter.

"Our strong start to 2016 included accelerated organic revenue growth and solid margin expansion, which are the direct result of maintaining disciplined execution behind our clear and focused strategy," said Aramark chief executive Eric Foss. "Our momentum was broad based across sectors and geographies while our transformation initiatives continued driving productivity improvements."

The contract foodservice, workplace refreshment and facilities management giant said it experienced solid retention rates, strong new client wins and underlying base business expansion in the quarter.

Organic sales growth was reportedly broad based across all of its segments, with notable gains in North America coming from new contracts in education and Aramark's sports and leisure business.

Aramark's Food and Support Services International saw organic growth driven by expansion in emerging markets, particularly China.

Organic sales in Aramark's uniform and career apparel division continue to benefit from previously announced capacity expansion but results were adversely impacted by temporary start-up costs.