Aramark Q4 2022 Earnings Report
Key Takeaways
Aramark's Q4 2022 results showed significant growth with a 24% increase in revenue and a 62% increase in Adjusted Operating Income. The company's revenue reached 111% of pre-COVID levels, driven by new business, pricing, and recovery. EPS increased to $0.29, and adjusted EPS more than doubled to $0.49.
Revenue increased by 24%, with organic revenue up by 26%.
Operating Income grew by 50%, and Adjusted Operating Income increased by 62%.
EPS increased by $0.15 to $0.29, while Adjusted EPS more than doubled to $0.49.
The company achieved record net new business of $790 million for the full fiscal year.
Aramark
Aramark
Forward Guidance
Aramark expects organic revenue growth between +11% and +13%, Adjusted Operating Income (AOI) growth of +34% to +39%, and Free Cash Flow in a range of $475 million to $525 million for fiscal year 2023.
Positive Outlook
- Organic revenue growth between +11% and +13% driven by Net New Business, pricing, and ongoing base recovery.
- Adjusted Operating Income (AOI) growth of +34% to +39%.
- Free Cash Flow in a range of $475 million to $525 million, before the payment of deferred payroll taxes associated with the CARES Act as well as spin-off and restructuring related costs.
- Leverage ratio between 4.0x and 4.5x by the end of the fiscal year.
- Company expects to sustain its growth momentum into fiscal 2023.