Sysco: Reports Third Quarter Fiscal 2022 Results

Houston / TX. (syy) Sysco Corporation, the leading global foodservice distribution company, announced financial results for its 13-week third fiscal quarter ended April 02, 2022.

Key highlights for the third quarter of fiscal year 2022

  • Robust consumer and customer away-from-home demand in late February and March, as Sysco’s resilient business snapped back from the impact of Omicron;
  • Meaningful market share gains in the U.S. and International Segments based on Sysco’s Recipe for Growth strategy;
  • Significant volume improvements, with U.S. Broadline volume up 18.8 percent versus the same period in fiscal year 2021, with our U.S. Foodservice segment surpassing fiscal year 2019 total case levels in the comparable quarter;
  • Growing gross profit per case across all segments, reflecting successful efforts to manage product and fuel inflation; and
  • Growing enterprise profitability, effectively managing costs and continuing to reinvest back into the business.

«Sysco delivered strong results this quarter, reflecting sequential top-line improvements and accelerating market share gains. Our share gains in the U.S. and International segments continue to accelerate and demonstrate the impact of our Recipe for Growth strategy on our business. Additionally, our teams made significant improvements in operating expenses leverage, with lower snap back costs, encouraging progress in our operations productivity performance and continued re-investments to drive profitable growth,» said Kevin Hourican, Sysco’s president and chief executive officer. «Our profit performance this quarter exceeded our expectations and demonstrates the progress we are making in advancing our strategy. I want to thank our associates for the change they are driving to enable Sysco to better serve our customers.»

Additional key financial results for the third quarter of fiscal year 2022 included:

  • Sales increased 42.9 percent versus the same period in fiscal year 2021 and increased 15.3 percent versus the same period in fiscal year 2019;
  • U.S. Broadline volume increased 18.8 percent versus the same period in fiscal year 2021 and decreased 3.5 percent versus the same period in fiscal year 2019;
  • Gross profit increased 42.0 percent to USD 3.0 billion, as compared to the same period last year, and increased 9.4 percent, as compared to the same period in fiscal year 2019;
  • Operating income increased 110.1 percent to USD 495.7 million, and adjusted operating income increased to USD 575.4 million, as compared to the same period last year, while operating income decreased 6.4 percent and adjusted operating income decreased 7.2 percent, as compared to the same period in fiscal year 2019;
  • Earnings before interest, taxes, depreciation and amortization (Ebitda) increased to USD 703.3 million, and adjusted Ebitda increased to USD 755.8 million, in each case as compared to the same period last year, while Ebitda decreased 0.9 percent and adjusted Ebitda decreased 2.7 percent, in each case as compared to the same period in fiscal year 2019; and
  • Earnings per share (EPS) increased to USD 0.59 compared to USD 0.17 in the same period last year; and adjusted EPS increased to USD 0.71 compared to USD 0.22 in the same period last year, while EPS decreased USD 0.26 and adjusted EPS decreased USD 0.08, in each case as compared to the same period in fiscal year 2019.

«Our financial results this quarter reflect strong demand and excellent progress against our transformation efforts. Notwithstanding double-digit inflation and purposeful snap back and transformation investments, our resilient business generated strong profitability. We are upbeat about our business and are raising our adjusted EPS guidance for fiscal year 2022 from USD 3.00-USD 3.10 to USD 3.16-USD 3.26. During the quarter, we continued our growth investments, maintained our strong balance sheet and, consistent with our status as a Dividend Aristocrat, announced another increase to our dividend,» said Aaron Alt, Sysco’s chief financial officer.

For additional information please read the Company’s PDF file below (286 KB):

20220511-SYSCO-Q3-2022
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