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Apr 02, 2021
Aramark Q2 2021 Earnings Report
Aramark's second quarter earnings were impacted by COVID-19, but showed sequential quarterly improvement across all business segments due to increased business activity and lapping the initial significant impact from COVID-19 in the prior year.
Key Takeaways
Aramark reported second quarter fiscal 2021 results with revenue at $2.8 billion, down 24% compared to prior year. The company generated cash provided by operating activities of $337 million and Free Cash Flow of $259 million. Actions subsequent to quarter-end enhanced flexibility and drive growth agenda.
Generated cash provided by operating activities of $337 million and Free Cash Flow of $259 million in the quarter; $119 million and $151 million better than prior year, respectively
Approximately $2.6 billion cash availability at quarter-end
Revenue (24)%; Organic Revenue (26)%
Increased client reopenings throughout portfolio
Aramark
Aramark
Forward Guidance
Aramark will continue to leverage its flexible operating model, while managing the business with a cost-disciplined, long-term mindset focused on accelerated growth and margin progression.
Positive Outlook
- Organic revenue improvement over the course of the fiscal year
- Adjusted Operating Income (AOI) margin in the second half of the fiscal year in a range of 4.0% to 4.5% with incremental quarterly progression
- Free Cash Flow raised to a range of neutral to $250 million generation for fiscal 2021, dependent on the pace of recovery and timing of underlying growth
- These investments have already translated into an enhanced new business pipeline, creating the opportunity for us to meaningfully accelerate growth.
Challenges Ahead
- The fiscal 2021 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 business, operations, and financial results, including the duration and magnitude of such impact, will depend on numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the