Sysco Corporation: Reports Q2-2024 Financial Results

Houston / TX. (syy) Sysco Corporation, a leading global foodservice distribution company, announced financial results for its 13-week second fiscal quarter ended December 30, 2023. Key financial results for Q2 of fiscal year 2024 include the following (comparisons are to the same period in fiscal year 2023):

  • Sales increased 3.7 percent; U.S. Foodservice volume increased 3.4 percent; U.S. local volumes grew 2.9 percent;
  • Gross profit increased 4.9 percent to USD 3.5 billion;
  • Operating income increased 9.2 percent to USD 700.0 million, and adjusted operating income increased 9.2 percent to USD 744.9 million;
  • Ebitda increased 82.7 percent to USD 914.3 million, and adjusted Ebitda increased 11.6 percent to USD 927.5 million;
  • EPS increased 192.9 percent to USD 0.82, compared to USD 0.28 in the same period last year, and adjusted EPS increased 11.3 percent to USD 0.89;
  • First half cash flow from operations increased 70.0 percent to USD 855.9 million, and free cash flow increased 140.5 percent to USD 527.4 million;
  • The company now expects to return approximately USD 2.25 billion back to shareholders in fiscal year 2024, raising share repurchase expectations from USD 750 million to USD 1.25 billion; and
  • Reaffirming fiscal year 2024 guidance expectations for top- and bottom-line growth.

«Second quarter results included adjusted EPS growth of over 11 percent, fueled by sales and volume growth, combined with positive operating leverage, as we continue to effectively manage margins. Our balanced efforts to deliver compelling top- and bottom-line growth were driven by sequential improvements in volume growth, including local performance, as well as supply chain productivity and implementation of structural cost-out actions. Sysco’s industry leading profitability, size and scale advantages, and strong balance sheet represent a position of strength. Combining our advantages with Sysco’s discipline on profitable growth, we expect to deliver strong results for the remainder of fiscal year 2024 and beyond,» said Kevin Hourican, Sysco’s President and Chief Executive Officer.

«Our second quarter operating profit included our fifth consecutive quarter of positive operating leverage, as gross profit expanded at a faster rate than operating expenses. Additionally, our balanced approach to capital allocation demonstrates the importance of investing in the business and rewarding our shareholders, all anchored by our strong balance sheet and consistent cash generation. Looking ahead, we now expect to return approximately USD 2.25 billion back to shareholders in fiscal year 2024, through meaningful share repurchases and dividends. Our positive momentum through the first half gives us confidence in reiterating our fiscal year 2024 guidance of mid-single digit sales growth to approximately USD 80 billion and five to ten percent adjusted EPS growth to USD 4.20 to USD 4.40,» said Kenny Cheung, Sysco’s Chief Financial Officer. For additional information please read the PDF file below (284 KB):