In its first-quarter report for fiscal 2022, Aramark's consolidated revenue came in at $3.9 billion, an increase of 44% compared with the prior year's first quarter. Organic revenue, which adjusts for the effect of currency translation and the Next Level Hospitality acquisition, improved 41% year-over-year with growth in all segments.
Aramark said the steadily improving pace of account re-openings, pricing pass-throughs and new client wins brought its consolidated to organic revenues to, respectively 93% and 92% of pre-COVID levels. Pre-COVID levels reflect performance compared with the same period in fiscal 2019.
"I am grateful to the Aramark team around the world and their commitment to our hospitality culture," said Aramark chief executive John Zillmer. "Their ongoing dedication is evident in our financial performance, with organic revenue reaching 92% of pre-COVID levels in the first quarter, while effectively managing through a heightened inflationary environment.
Aramark's year-over-year summary
- Revenue +44%; wrganic revenue +41%. Performance improvement across all segments, led by FSS U.S.; revenue at 93% of pre-COVID level; organic revenue at 92% of pre-COVID level.
- Operating income up $161 million; adjusted operating Income up $176 million.
- EPS increased $0.49 to $0.17; adjusted EPS increased $0.53 to $0.22.
- Continued focus and delivery on growth strategies. Strong start to fiscal year in net new business driven by client retention and new account wins. Created two strategic partnerships to provide clients additional differentiated service offerings and concepts.
In the quarter, Aramark embarked on strategic partnerships with Patient Engagement Advisors and Starr Restaurant Organization that are expected to enhance its service offerings and capabilities:
PEA adds a technology and service platform to Aramark's Healthcare portfolio that assists clients in providing continual care pre- and post-discharge for patients. See article
Starr will enable additional hospitality experiences for clients by providing creative concepts and brands across Aramark's portfolio. See story
Aramark said its recent strategic actions, combined with its strong financial performance, position it to achieve its near-term outlook and longer-term financial targets. Annual revenue growth is expected to be between 23% to 27%.