Vending

Aramark reports solid Q4 and record FY 2022 results

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November 15, 2022

Aramark Corp. reported strong sales and earnings gains for Q4 and FY 2022, including record annual revenue, according to a press release.

Quarterly highlights include:

• Consolidated revenue rose 24%, from $3.55 billion in Q4 2021 to $4.39 billion in the quarter ending Sept. 30, 2022.
• Organic revenue, which adjusts for the effect of currency translation and certain acquisitions, improved 26% year-over-year.
• Net income rose from $34.3 million to $75.44 million in the comparative quarters.
• Basic and diluted EPS both rose from 14 cents to 29 cents.
• Adjusted EPS more than doubled to 49 cents.
• Consolidated revenue reached 111% and organic revenue reached 113% of pre-COVID levels, driven by broad-based net new business, pricing and ongoing base recovery.

For the full year:

• Revenue rose from $12.1 billion to $16.3 billion.
• Net income rose from a $92.2 million loss to $194.17 million.
• Both basic and diluted EPS rose from a 36-cent loss to 76 cents.

Shares traded today at $40.50 against a 52-week range of $28.74-$40.64.

The $4.39 billion in quarterly revenue beat analyst expectations by $280 million and the non-GAAP EPS of 49 cents was in line with expectations, according to Seeking Alpha.

"We are extremely pleased with our performance in the fourth quarter and throughout fiscal 2022 as we delivered the highest annual revenue in Aramark's history, a second consecutive year of record net new business and ongoing margin expansion," CEO John Zillmer, said in the press release. "Our strong finish was driven by broad-based growth across all segments as well as the strategic initiatives and hospitality-focused culture we have implemented to position our business for continued success."

Aramark currently expects the full-year total company performance for fiscal 2023 to include organic revenue growth between 11% and 13% driven by net new business, pricing and ongoing base recovery, with adjusted operating income growth of 34% to 39%.