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US firm Aramark's revenue surges 13% in Q1 FY24

07 Feb '24

2 min read

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American company Aramark's revenue rose 13 per cent to $4.4 billion in Q1 FY24, with organic growth also up 13 per cent.
Operating income increased 10 per cent to $167 million, and adjusted operating income grew 28 per cent to $231 million.
The company's GAAP EPS declined to $0.11 in Q1 FY24, but adjusted EPS increased 33 per cent to $0.41.

Aramark, a leading US-based firm in uniform services, has reported a consolidated revenue of $4.4 billion for the first quarter of fiscal 2024 (Q1 FY24). This represents a 13 per cent increase compared to the same period last year, bolstered by a significant rise in base business volume, strategic pricing actions, and the expansion of net new business. Despite the adverse impact of currency translation, which slightly reduced revenue by $3 million, organic revenue, which adjusts for this effect, also saw a 13 per cent uptick.

Operating income for the quarter rose by 10 per cent year-over-year to $167 million, and adjusted operating income saw a significant jump of 28 per cent to $231 million. However, the operating income margin was 9 basis points lower than in the previous year.

Earnings per share (EPS) on a GAAP basis fell by 27 per cent to $0.11, while adjusted EPS improved substantially, with a 33 per cent increase to $0.41, the company said in a press release.

John Zillmer, Aramark's Chief Executive Officer. “Our teams around the globe are successfully executing on our growth strategies, which are driving top- and bottom- line performance. We’ve seen inflation continue to moderate, which provided a tailwind to profitability during the quarter. We believe the current market landscape presents tremendous opportunities, and both our growth leaders and our supply chain organisation are hard at work implementing strategies to further unlock this potential,” said John Zillmer, Aramark's chief executive officer.

Fibre2Fashion News Desk (DP)

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