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Cintas Increases Sales, Earnings in Fiscal Year Q2

Based on a strong start to the year, the publicly traded Top 40 distributor also raised annual revenue expectations.

Talk of recession be darned: There’s been no slowdown for Cintas (asi/162167).

The publicly traded Cincinnati, OH-based corporation, a Top 40 promotional products distributor best known for its uniform services, revealed Dec. 21 that it increased total company sales, earnings and operating income year over year in its fiscal year 2023 second quarter, which concluded Nov. 30.

upward trend

“Each of our operating segments again grew revenue at a double-digit rate,” said Cintas CEO Todd M. Schneider. “Strong volume growth from new customers and the penetration of existing customers with more products and services generated operating leverage. This contributed to the achievement of double-digit increases in operating income and diluted earnings per share (EPS) despite high inflation.”

For fiscal Q2, Cintas said sales tallied $2.17 billion, a rise of 13.1% compared to the prior year’s quarter. Net income reached $324.3 million – a year-over-year increase of $30 million. Diluted EPS was $3.12, also a 13% jump. Operating income accelerated 16.7% relative to Q2 2022, hitting $444.9 million. The totals are for all Cintas business divisions, not just promo products.

Cintas also increased sales, income and the like in its fiscal 2023 first quarter. Given the stout performance, Cintas hiked its full-year financial guidance.

“We are raising our annual revenue expectations from a range of $8.58 billion to $8.67 billion to a range of $8.67 billion to $8.75 billion and diluted EPS from a range of $12.30 to $12.65 to a range of $12.50 to $12.80,” Schneider said.

In July, Cintas reported that it increased its full-year fiscal 2022 sales by more than 10%. Profit and free cash flow grew, too.

Based on estimated 2021 North American promo product revenue of $177 million, Cintas ranked 14th on Counselor’s most recent list of the largest distributors in the industry.