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Jul 01, 2022
Aramark Q3 2022 Earnings Report
Revenue surpassed pre-COVID levels across all three business segments, driven by record-level net growth, pricing, and ongoing base recovery. Operating income and adjusted operating income increased due to higher sales volume and operational cost management. The company raised its fiscal 2022 outlook for organic revenue growth and annualized net new business.
Key Takeaways
Aramark reported strong Q3 2022 results, with revenue surpassing pre-COVID levels across all business segments. The company saw significant increases in operating income and adjusted operating income, driven by revenue growth and cost management. Aramark raised its fiscal 2022 outlook for organic revenue growth and annualized net new business.
Revenue increased by 38%, with organic revenue up by 39%, surpassing pre-COVID levels across all three business segments.
Operating Income increased by 99%, and Adjusted Operating Income (AOI) increased by 73%, driven by higher sales volume and operational cost management.
EPS increased to $0.16, and Adjusted EPS increased to $0.25.
Fiscal 2022 outlook was raised for Organic Revenue Growth to +31% to +32% and Annualized Net New Business to $725 million to $775 million.
Aramark
Aramark
Forward Guidance
Aramark provided full-year performance expectations for fiscal 2022 and expects organic revenue growth of +31% to +32%, Q4 at 107% to 108% of pre-COVID levels, Annualized Net New Business of $725 million to $775 million, AOI Margin at or very near 5%, Q4 margin of mid-6%, and Free Cash Flow of $300 million to $350 million.
Positive Outlook
- Organic Revenue Growth of +31% to +32%
- Q4 at 107% to 108% of pre-COVID levels
- Annualized Net New Business of $725 million to $775 million
- AOI Margin at or very near 5%
- Q4 margin of mid-6%
Challenges Ahead
- Lingering impact of COVID-19 on Aramark and its clients
- Numerous evolving factors that are difficult to accurately predict
- Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission
- Inherent difficulty in forecasting and quantifying certain amounts that are necessary for reconciliations
- Adjustments that could be made for the impact of the change in fair value related to certain gasoline and diesel agreements and other charges and the effect of currency translation