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Dec 31, 2021
Aramark Q1 2022 Earnings Report
Aramark's financial performance improved, with organic revenue reaching 92% of pre-COVID levels and effectively managed through a heightened inflationary environment.
Key Takeaways
Aramark reported a strong first quarter in fiscal year 2022, with revenue up 44% and organic revenue up 41%. The company's performance improved across all segments, with revenue reaching 93% of pre-COVID levels. Operating income and adjusted operating income also increased significantly, driven by improved sales volume and effective cost management.
Revenue increased by 44%, with organic revenue up by 41%.
Operating Income increased by $161 million, while Adjusted Operating Income (AOI) increased by $176 million.
EPS increased to $0.17, and Adjusted EPS increased to $0.22.
The company focused on growth strategies, with a strong start to the fiscal year in Net New Business, driven by client retention and new account wins.
Aramark
Aramark
Forward Guidance
Aramark maintains its full-year performance expectations for fiscal 2022.
Positive Outlook
- Organic Revenue Growth: +23% to +27%
- AOI Margin: 5.0% to 5.5%
- Free Cash Flow: $300M to $400M
- Annualized Net New Business: $550M to $650M
- Targeting financial performance to achieve the following fiscal 2025 goals: Revenue $20B+, AOI Margin 7.0% to 7.5%, Adjusted EPS $3.35 to $3.65, Leverage Ratio 3.0x to 3.5x
Challenges Ahead
- The fiscal 2022 outlook reflects management's current assumptions regarding the continued impact of COVID-19 on Aramark and its clients.
- The extent to which COVID-19 continues to impact segments, operations, and financial results, including the duration and magnitude of such impact, will depend on numerous evolving factors that are difficult to accurately predict.
- These factors include the severity and duration of the COVID-19 pandemic and the pandemic's impact on the United States and global economies.
- These factors include particularly the client sectors we serve and governmental responses to the pandemic.
- These factors include unfavorable economic conditions, natural disasters, global calamities, climate change, new pandemics, sports strikes and other adverse incidents.