Sysco: Reports Q3-2023 Financial Results

Houston / TX. (syy) Sysco Corporation, a leading global foodservice distribution company, announced financial results for its 13-week third fiscal quarter ended April 01, 2023. Key financial results for the third quarter of fiscal year 2023 include:

  • Sales increased 11.7 percent versus the same period in fiscal year 2022;
  • U.S. Foodservice volume increased 6.1 percent versus the same period in fiscal year 2022;
  • Gross profit increased 13.9 percent to USD 3.4 billion, as compared to the same period last year;
  • Operating income increased 40.0 percent to USD 694.2 million, and adjusted operating income increased 27.8 percent to USD 735.5 million, in each case as compared to the same period last year; Sysco delivered the highest Q3 adjusted operating income on record, which was 18.6 percent higher than the prior peak;
  • Ebitda increased 25.8 percent to USD 885.0 million, and adjusted Ebitda increased 19.0 percent to USD 899.7 million, in each case as compared to the same period last year2;
  • EPS increased 42.4 percent to USD 0.84 and adjusted EPS increased 26.8 percent to USD 0.90, in each case as compared to the same period last year; and
  • Net Debt to adjusted Ebitda of 2.8 times; returned over USD 359 million of capital to shareholders via USD 110 million of share repurchases and USD 249 million of dividends.

«Sysco delivered another quarter of double-digit top- and bottom-line growth, inclusive of volume and market share gains. Our supply chain network delivered meaningful, sequential efficiency gains with improvements in retention, productivity, and operating expense leverage. We advanced our Recipe for Growth strategy with progress made with our digital tools and sales and merchandising initiatives. We are driving meaningful returns through our customer focused work with Sysco Your Way and Sysco Perks. We delivered strong sales growth throughout the quarter, despite some industry softness beginning in March. In an evolving environment, Sysco is best positioned to weather the potential impacts, given our fully diversified business model. We expect our efficiency actions to accelerate, as we continue to invest to win for the long-term health of our business,» said Kevin Hourican, President and Chief Executive Officer.

«Our solid financial results for the third quarter included gross profit growth outpacing operating expense growth, which drove meaningful operating leverage and allowed us to deliver another record quarter of adjusted operating income. Additionally, our free cash flow more than doubled to USD 980 million year-to-date. We also continued our balanced approach to capital allocation, returning cash back to our shareholders with share repurchases and dividends,» said Kenny Cheung, Chief Financial Officer.

For additional information please read the company’s PDF file below (240 KB):