Q2 2024 Aramark Earnings Call Transcript
Key Points
- Aramark (ARMK) achieved record total company revenue for any second quarter in its history, along with record second quarter profit in the International segment.
- Organic revenue growth was up 9.4% in the second quarter compared to the prior year, driven by substantial base business growth, pricing, and net new business.
- The U.S. segment saw a 7% increase in organic revenue, with significant contributions from Collegiate Hospitality, Sports & Entertainment, and workplace experience.
- International segment experienced organic revenue growth in every country and region, led by strong performances in mining services in Latin America, business dining in the U.K., and education in Canada.
- Aramark (ARMK) is actively expanding its global supply chain and GPO network spend, which now totals $19 billion, enhancing procurement services and creating efficiencies.
- Despite positive growth, Aramark (ARMK) continues to navigate challenges related to inflation, although some improvement was noted in the second quarter.
- The company is still in the process of selling its remaining ownership stake in the San Antonio Spurs NBA franchise, which adds a layer of financial uncertainty.
- Aramark (ARMK) faces intense competition in securing new business, particularly from regional and other major players in the market.
- There are ongoing pressures related to the pricing environment, although current strategies have been effective in managing these challenges.
- While there has been significant progress in the International segment, currency translation effects and geopolitical risks could impact future performance.
Good morning, and welcome to Aramark's Second Quarter Fiscal 2024 Earnings Results Conference Call. My name is Kevin, and I'll be your operator for today's call. (Operator Instructions)
I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. Ms. Kissell, please proceed.
Thank you. Welcome to Aramark's second quarter fiscal 2024 earnings conference call and webcast. This morning, we will be hearing from our Chief Executive Officer, John Zillmer; as well as our Chief Financial Officer, Jim Tarangelo.
As a reminder, our notice regarding forward-looking statements is included in our press release this morning, which can be found on our website. During this call, we will be making comments that are forward-looking. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties and important factors, including those discussed in the risk factors, MD&A and other
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