US' Aramark Q2 revenue hits $4.3 bn; organic growth at 3%
American company of food service, facilities management, and uniform services provider Aramark is projecting organic revenue growth between 7.5 and 9.5 per cent for fiscal 2025 (FY25). The adjusted operating income is anticipated to rise by 15 to 18 per cent from the FY24 figure of $882 million. Adjusted earnings per share (EPS) are forecast to grow by 23 to 28 per cent from $1.55 in FY24. The company also aims to reduce its leverage ratio from 3.4x to approximately 3.0x.
Aramark anticipates revenue growth to accelerate over the next two quarters primarily from net new business, strong client retention rates, and volume growth, Aramark said in a press release.
Aramark has reported a revenue of $4.3 billion in Q2 FY25, up 2 per cent, with organic revenue rising 3 per cent and client retention exceeding 98 per cent. Operating income grew 9 per cent to $174 million, and AOI rose 11 per cent to $205 million. The company expects FY25 organic revenue growth of 7.5â€'9.5 per cent and adjusted EPS growth of 23â€'28 per cent, with a focus on strategic expansion.
'We are highly confident in realising the growth opportunities immediately ahead for the business, driven by our extensive strategic and operational capabilities,' said John Zillmer, Aramark's chief executive officer (CEO) at Aramark . 'We will continue to manage the portfolio for significant value creation—through organic revenue growth, margin progression, and a strengthened balance sheet. As always, I am immensely grateful for our teams across the globe who are the driving force behind our success.'
Meanwhile, Aramark consolidated revenue was $4.3 billion, a 2 per cent increase year-over-year (YoY) and a 3 per cent YoY rise in organic revenue in the second quarter (Q2) of fiscal 2025 (FY25). The company achieved strong new business wins and maintained a client retention rate of over 98 per cent.
FSS United States revenue growth was driven by higher participation rates, new client wins, and expanded micro-market and vending services in business and industry, along with strong performance in corrections and procurement gains from Avendra. Despite certain offsetting items, revenue and organic growth would have been around 3 per cent higher, added the release.
FSS International saw broad-based growth across most countries, led by the UK, Spain, Chile, and Canada, fuelled by base business expansion and new contracts, though GAAP revenue reflected currency translation impacts.
The operating income of the company rose by 9 per cent year-over-year (YoY) to $174 million in the quarter, while adjusted operating income (AOI) increased by 11 per cent to $205 million. This reflects an operating income margin improvement of 30 basis points and an AOI margin gain of over 30 basis points (bps).
Fibre2Fashion News Desk (SG)
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