Sysco: Reports Q1-2024 Financial Results

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

  • Sales increased 2.6 percent; U.S. Foodservice volume increased 1.6 percent;
  • Gross profit increased 4.6 percent to USD 3.6 billion;
  • Operating income increased 9.1 percent to USD 803.6 million, and adjusted operating income increased 10.6 percent to USD 854.3 million;
  • Ebitda increased 10.5 percent to USD 1.0 billion, and adjusted Ebitda increased 11.7 percent to USD 1.0 billion;
  • EPS increased 8.8 percent to USD 0.99 and adjusted EPS increased 10.3 percent to USD 1.07; and
  • Sysco returned approximately USD 352.9 million of capital to shareholders via USD 100.0 million of share repurchases and USD 252.9 million of dividends and remains on target to return approximately USD 1.75 billion back to shareholders in FY 2024.

«Sysco delivered another quarter of compelling earnings results, growing operating income by 9.1 percent and adjusted operating income by 10.6 percent. This was fueled by volume growth, excellent margin management, and disciplined productivity improvement. Our actions to improve efficiency continued, with progress in supply chain productivity and implementation of structural cost-out actions. We advanced our competitive advantages as the global leader in foodservice distribution through our Recipe for Growth strategy. This includes our planned acquisition of Edward Don + Company, one of the largest kitchen equipment and supplies distributors, which will add new capabilities and diversified offerings to our product assortment. Combining DON and Sysco will enable us to better serve our hundreds of thousands of customers with a more complete restaurant and hospitality assortment. Sysco’s strong profitability, size and scale advantages, and balance sheet position us for profitable growth for the remainder of fiscal year 2024 and beyond,» said Kevin Hourican, Sysco’s President and Chief Executive Officer.

«Our record first quarter operating profit, of USD 803.6 million, included meaningful gross margin expansion and positive operating leverage. This further illustrates the strength of Sysco and reinforces that our Recipe for Growth strategy is yielding results. Our balanced approach to capital allocation continued this quarter, while ending the quarter at 2.6 times net debt to adjusted Ebitda. Looking ahead, we plan to deliver continued productivity gains. Adding to our track record, we rewarded our shareholders by returning approximately USD 352.9 million of cash during the quarter. Our positive momentum in the first quarter gives us confidence in reiterating our FY24 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 company’s PDF file below (192 KB):