News September 28, 2023
Cintas’ Sales Rise 8.1% in Fiscal Year First Quarter
Buoyed by the results, the publicly traded Top 40 distributor has increased its sales and earnings forecast for the full year.
Don’t talk to Top 40 distributor Cintas (asi/162167) about a rough economy or a sales slowdown.
The Cincinnati-headquartered corporation, best known for its uniform rental and facility services business, increased sales, earnings, operating income and gross margin in the first quarter of its 2024 fiscal year, which concluded Aug. 31, according to a financial report the publicly traded firm released this week.
Cintas reported that sales rose 8.1% year over year in Q1 to $2.34 billion. The figure is total sales, encompassing much more than promo products – a specific figure for which wasn’t revealed.
Cintas noted that revenue in its uniform rental and facility services business division increased 7.6% in the first quarter, to nearly $1.83 billion. Revenue from what Cintas describes as its other business ventures collectively tallied $515.5 million, a 10% year-over-year increase.
Q1 net income was $385.1 million, or $3.70 diluted earnings per share (EPS), compared to $351.7 million, or $3.39 diluted EPS, in last year’s first quarter. On Sept. 15, Cintas paid an aggregate quarterly cash dividend of $138.3 million to shareholders, an increase of 17.8% from the amount paid last September.
Gross margin for the first quarter jumped 11% year over year to $1.14 billion. Operating income for Q1 added up to $500.6 million, a nearly 14% leap over the prior fiscal year’s first-quarter performance.
“These financial results are the product of the exceptional dedication of our employee-partners in helping businesses across North America stay focused on the work that matters most through innovative products and services,” said Cintas President/CEO Todd M. Schneider. “I look forward to another successful fiscal year.”
Encouraged by the strong Q1, Cintas has increased its projected sales for fiscal year 2024 from a previous prediction of $9.35 billion to $9.50 billion to a range of $9.40 billion to $9.52 billion. The forecast for diluted EPS has been upped, too, rising from a previous range of $13.85 to $14.35 to a range of $14 to $14.45.
Based on estimated North American promotional product revenue of $199.1 million, Cintas ranked 16th on Counselor’s most recent list of the largest distributors in the industry.