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Aramark Posts Q2 Financial Results

05/11/2022

Egg-NewsIn a May 10th release, Aramark Inc. (ARMK) posted financial results for the 2nd quarter of fiscal 2022. This Company can be regarded as a bellwether as a participant in the institutional segment of the food industry with a concentration on educational institutions. Along with competitors Sysco and US Foods, all are subject to the pressures of currency fluctuation, escalation in costs for products, labor and transport in a competitive environment still restrained by COVID.

 

For the 2nd Quarter of FY 2022 ending April 1st 2021, net income was $35.5 million on revenue of $3,861 million.  Comparable figures for the 2nd quarter quarter of FY 2021 ending April 2nd 2021 were a net loss of $(77.6) million on revenue of $2,820 million.  EPS rose from a loss of $(0.30) for the 2nd quarter of fiscal 2021 to $0.14 for the most recent quarter.

 

In commenting on results John Zillmer CEO stated, “Success driving our operational, strategic, investment, and cultural initiatives enabled Aramark to deliver double-digit organic revenue growth in each segment," He added  "As our financial performance across the business continues to strengthen, I'm encouraged by the record-breaking pace of new client wins, and a sales pipeline for the remainder of the year which we believe puts us on track for a second consecutive year of record-breaking Net New Business performance. None of this could be accomplished without the extraordinary Aramark people around the world who are focused on living our hospitality culture in our client locations and in the communities where we live and work”.

 

Egg-NewsGuidance for FY 2022 included revenue growth of 29 percent and growth in adjusted operating income of 5 percent.

 

Aramark intends to spin off the uniform service segment  of the Company.

 

On April 1st 2021 Aramark posted assets of $14,462 (including $8,116 million in goodwill and intangibles) against long-term debt of $8,027 million. The Company had an intraday market capitalization of $9,211 million on May 11th 2022. ARMK trades with a forward P/E of 28.5 and has ranged over a 52-week period from $31.22 to $39.95 with a 50-day moving average of $36.43.  Twelve-month trailing operating margin was 2.8 percent and profit margin 0.3 percent.  Return on assets over the past twelve months was 1.6 percent and the return on equity 1.2 percent. At market close on February 10th ARMK was priced at $34.62 after the morning release