Aramark released results for its fourth-quarter this week, reporting consolidated revenue of $3.6 billion, an increase of 32% compared with the prior year. Organic revenue, which adjusts for the effect of currency, the Next Level Hospitality acquisition, and the 53rd week of operations in the prior year, improved 37% year-over-year. An accelerated pace of new client wins, combined with improving business re-opening activity and pricing pass-through, resulted in revenue at 90% and organic revenue at 87% of pre-COVID levels, led by the FSS United States segment.
- Revenue increased 32%, organic revenue was up 37%. Aramark improved performance led by the FSS United States segment. Revenue is reported at 90% of pre-COVID level.
- Operating income up $226 million and adjusted operating income up $177 million versus prior year. Operating income margin of 3.7%.
- Higher profitability was driven by improved sales volume and effective cost management.
- EPS increased form $0.73 to $0.14; Adjusted EPS increased from $0.56 to $0.21.
Fiscal year 2021 summary
- For the year, Aramark saw record net new business of over $500 million, five times higher than the previous five-year average. Annualized gross new business totaled nearly $1.25 billion, the highest in Aramark's history.
- Retention rate of 95.5% improved 150 basis points compared to historical five-year average. Annualized net new business over $500 million, representing 3.1% of pre-COVID revenue.
- EPS was $0.36); adjusted EPS of $0.3.
- Aramark had strong cash flow performance and maintained high level of liquidity. Cash provided by operating activities of $657 million, increased $480 million versus the prior year. The company had $2 billion in cash availability at year-end.
See Aramark's full news release at Business Wire.