Aramark 1Q profit rises 4%

Aramark Holdings Corp. reported on Wednesday a 4-percent increase in first-quarter net income in its first earnings report after returning to the public market.

For its Dec. 27-ended first quarter, Aramark recorded net income of $44.9 million, or 21 cents per share, an increase of 4 percent from $43.2 million, or 20 cents per share, compared with the year-earlier period.

Revenue rose 6 percent to 3.8 billion, compared with $3.5 billion a year ago, benefitting in part from a favorable comparison after sales in the first quarter of 2013 took about a 2-percent hit as a result of Hurricane Sandy and the NHL lockout last year.

Foodservice sales in North America increased 7 percent to $2.6 billion. The company said sales growth was particularly solid in the education and sports, leisure and corrections sectors. International foodservice sales also grew by 7 percent, to $775.6 million, including double-digit growth in emerging markets and positive growth in Europe.

“The momentum in our business continues, and we delivered strong first quarter results,” said Eric Foss, Aramark’s president and chief executive, in a statement. “We continue to win new business and achieve high client-retention rates, which drove broad-based, top-line growth across our segments and geographies. At the same time, our productivity programs and repeatable business model are driving margin and profit improvement.

“The growth potential in our business is significant, and we are confident in our ability to drive long-term shareholder value through the effective execution of our strategy,” he continued.

In its third run as a public company, the Philadelphia-based global foodservice contractor raised a net $524 million in an initial public offering in December, which was applied to outstanding debt. Aramark trades on the New York Stock Exchange under the symbol ARMK.

Aramark provides foodservice, facilities and uniform management services to hospitals, schools and businesses in 22 countries.

Contact Lisa Jennings at [email protected].
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