Aramark reported $4.7 billion in company revenues for its third fiscal quarter of FY2023, a 15% year-over-year increase that included $2.891 billion in revenues from its FSS (Food & Support Services) United States division, which was a 16% year-over-year increase. Organic revenue change, which adjusts for the effect of currency translation and certain acquisitions, was 14% and 15% for the company and US FSS, respectively, for the quarter, which ended June 30, 2023.
"Aramark's third quarter results reflect our continued focus on profitable growth across the organization," said CEO John Zillmer in announcing the results. "With signs of inflation moderating, and our pricing actions taking hold, we are increasingly confident in the ramp in profitability as we finish the fiscal year. I am extremely proud of our teams across the globe, which exemplify our performance-driven culture that contributed to our raised outlook expectations. We believe that we are well positioned to capitalize on the substantial opportunities ahead."
In its Q3 results announcement, Aramark noted that "FSS United States revenue growth benefited from net new business and pricing actions, as well as strong base business performance led by higher per capita spending in the Sports & Entertainment business and increased return-to-work volume in the Business & Industry sector."
Of particular import for the company was that operating Income increased 38% year-over-year, driven the company says by "operating leverage from increased revenue, improved supply chain economics, and disciplined above-unit cost management." For FSS United States, the increase was "driven by the ongoing maturity of new business, supply chain purchasing normalization
and initiatives, and disciplined above-unit cost management across the entire segment."
In addition, Aramark noted that it has made significant progress related to the operational, regulatory and financial logistics to complete the previously announced spin-off of its Uniforms segment and anticipates the transaction to be completed at the end of its fiscal year (Sept. 30), subject to customary closing conditions.
For its full 2023 fiscal year, the company raised its organic revenue expectation from 13% to 15% for the company as a whole and from 15% to 17% for its global food & support services operations.