Aramark (ARMK) Q1 FY2024 earnings: revenue $4.4 billion, up 12.6% on the year

Aramark (ARMK) reported revenue of $4.4 billion for Q1 FY2024, the quarter ended 29 December 2023, up 12.6% on the same quarter a year earlier. Net income was $29 million, down 61.5% on the year, and diluted earnings per share $0.11. The figures are the company's own, from the 10-Q it filed with the SEC on 6 February 2024.

Revenue$4.4 billionup 12.6%

Net income$29 milliondown 61.5%

Diluted EPS$0.11

QuarterQ1 FY2024ended 29 December 2023

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	4,408	4,902	n/a	n/a
Cost of revenue	4,045	4,382	n/a	n/a
Gross profit	363	520	n/a	n/a
Gross margin	8.2%	10.6%	n/a
Selling, general and administrative	90.2	104	n/a	n/a
Operating income	167	278	n/a	n/a
Operating margin	3.8%	5.7%	n/a
Interest expense	115	114	n/a	n/a
Pre-tax income	52.4	218	n/a	n/a
Income tax	23.9	12.8	n/a	n/a
Effective tax rate	45.6%	5.9%	n/a
Net income	28.5	205	n/a	n/a
Net margin	0.6%	4.2%	n/a
Diluted EPS	$0.11	$0.78	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	-657	1,037	n/a	n/a
Capital expenditure	116	150	n/a	n/a
Free cash flow	-773	886	n/a	n/a
Free cash flow margin	-17.5%	18.1%	n/a
Cash from investing	-198	-73.0	n/a	n/a
Cash from financing	-779	606	n/a	n/a
Depreciation and amortisation	106	138	n/a	n/a
Share-based compensation	13.7	21.3	n/a	n/a
Dividends paid	24.9	28.7	n/a	n/a
Dividend per share	$0.10	n/a	n/a	n/a
Diluted shares, weighted	264m	263m	n/a	n/a
Shares outstanding at period end	262m	261m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Shareholders' equity	2,847	3,713	n/a	n/a
Redeemable equity	8.1	8.2	n/a	n/a
Debt	5,930	6,667	n/a	n/a
Operating lease liabilities	244	292	n/a	n/a
Finance lease liabilities	n/a	133	n/a	n/a
Other liabilities	3,390	6,058	n/a	n/a
Total liabilities and equity	12,419	16,871	n/a	n/a
Fixed assets	1,490	2,091	n/a	n/a
Goodwill	4,661	5,580	n/a	n/a
Intangible assets	1,824	2,043	n/a	n/a
Cash and equivalents	296	1,963	n/a	n/a
Receivables	2,199	2,364	n/a	n/a
Inventory	368	578	n/a	n/a
Other assets	1,582	2,253	n/a	n/a
Total assets	12,419	16,871	n/a	n/a

Quarterly results, the last 12 quarters

	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	4,902	4,408	4,200	4,376	4,417	4,552	4,279	4,626	5,048	4,832	4,907	5,058
Cost of revenue	4,382	4,045	3,869	4,041	4,020	4,151	3,920	4,256	4,632	4,415	4,481	4,628
Gross profit	520	363	331	335	397	401	360	370	416	416	426	430
Gross margin	11%	8%	8%	8%	9%	9%	8%	8%	8%	9%	9%	9%
SG&A	104	90.2	62.6	65.4	65.5	70.4	68.4	65.7	73.9	72.7	74.5	78.6
Operating income	278	167	159	162	219	217	174	183	218	218	220	216
Operating margin	6%	4%	4%	4%	5%	5%	4%	4%	4%	5%	4%	4%
Interest expense	114	115	86.4	81.5	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Pre-tax income	218	52.4	72.7	80.2	160	141	84.5	96.2	108	136	138	136
Tax rate	6%	46%	27%	28%	23%	25%	27%	25%	19%	29%	26%	28%
Net income	205	28.5	53.4	58.1	122	106	61.9	71.8	87.1	96.2	102	97.7
Net margin	4%	1%	1%	1%	3%	2%	1%	2%	2%	2%	2%	2%
Diluted EPS	$0.78	$0.11	$0.20	$0.22	$0.46	$0.39	$0.23	$0.27	$0.33	$0.36	$0.38	$0.36
Operating cash flow	1,037	-657	221	141	n/a	-587	256	76.7	n/a	-782	400	117
Capital expenditure	150	116	87.4	85.1	139	120	116	111	142	122	101	112
Free cash flow	886	-773	134	55.6	n/a	-707	140	-34.7	n/a	-904	299	4.8
Buybacks	n/a	n/a	n/a	0.0	n/a	28.6	80.7	30.9	29.7	41.3	25.1	0.9
Dividends paid	28.7	24.9	24.9	25.0	25.0	27.9	27.8	27.5	27.6	31.5	31.5	31.6
Shares outstanding	261m	262m	263m	263m	264m	266m	263m	263m	263m	263m	263m	264m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 29 December 2023, filed 6 February 2024, accession 0001584509-24-000047: the filing on EDGAR. All of Aramark's filings: EDGAR company page.

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