Sysco: Sales In Fiscal Year 2022 Increased 33 Percent

Houston / TX. (syy) Sysco Corporation, the leading global foodservice distribution company, announced financial results for its 13-week fourth fiscal quarter and its 52-week fiscal year ended July 02, 2022. In fiscal year 2021, the fourth quarter included 14 weeks, and the year included 53 weeks.

Key highlights for the fourth quarter and full year 2022

  • Sysco growth outpaced the U.S. market by more than 1.3 times for the full year;
  • Recipe For Growth advanced as planned;
  • Volume growth for the quarter and year;
  • Effective pass-through of rising product costs;
  • Continued operating income recovery for the International segment;
  • Profitable growth, strong fourth quarter results; and
  • Capital allocation strategy executed, with significant investment in business, debt paid down during the quarter, and USD 500 million in shares repurchased for the year.

«Sysco generated another quarter of top-line and bottom-line improvements, topping off a strong year of financial performance, especially given the environmental conditions. This included growing more than 1.3 times the market for the year and exceeding fiscal 2019 operating income for the quarter by 6.4 percent. The strong financial performance was delivered while simultaneously investing in our Recipe For Growth strategy. We are delivering new commercial capabilities and accelerating growth in a way which will pay long-term returns for Sysco and our investors,» said Kevin Hourican, Sysco’s President and Chief Executive Officer. «I want to thank our associates around the world for their continued hard work and customer centricity.»

Key financial results for the fourth quarter of fiscal year 2022

  • Sales increased 17.5 percent versus the same period in fiscal year 2021 and, on a comparable 13-week basis, increased 26.5 percent to USD 19.0 billion. Sales increased 22.5 percent versus the same period in fiscal year 2019;
  • U.S. Broadline volume decreased 2.1 percent versus the same period in fiscal year 2021 and, on a comparable 13-week basis, increased 5.4 percent. U.S. Broadline volume decreased 2.2 percent versus the same period in fiscal year 2019;
  • Gross profit increased 18.1 percent to USD 3.4 billion, as compared to the same period last year, and increased 15.6 percent, as compared to the same period in fiscal year 2019;
  • Operating income increased 34.6 percent to USD 766.7 million, and adjusted operating income increased to USD 876.8 million, as compared to the same period last year, while operating income increased 6.4 percent and adjusted operating income increased 7.2 percent, as compared to the same period in fiscal year 2019;
  • Earnings before interest, taxes, depreciation and amortization (Ebitda) increased to USD 971.7 million, and adjusted Ebitda increased to USD 1.0 billion, in each case as compared to the same period last year. On a comparable 13-week basis, Ebitda increased 34.4 percent and adjusted Ebitda increased 44.5 percent, in each case as compared to the same period last year. Ebitda increased 1.3 percent and adjusted Ebitda increased 8.7 percent, in each case as compared to the same period in fiscal year 2019; and
  • EPS increased to USD 0.99 compared to USD 0.29 in the same period last year. Adjusted EPS increased to USD 1.15 compared to USD 0.71 in the same period last year, and on a comparable 13-week basis, increased USD 0.49 or 74.2 percent. EPS decreased USD 0.04 and adjusted EPS increased USD 0.05, in each case as compared to the same period in fiscal year 2019.

Key financial results for fiscal year 2022

  • Sales increased 33.8 percent versus fiscal year 2021 and, on a comparable 52-week basis, increased 36.9 percent to USD 68.6 billion. Sales increased 14.2 percent versus fiscal year 2019;
  • U.S. Broadline volume increased 15.4 percent versus fiscal year 2021 and, on a comparable 52-week basis, increased 17.9 percent. U.S. Broadline volume decreased 3.7 percent versus fiscal year 2019;
  • Gross profit increased 31.7 percent to USD 12.3 billion, as compared to the prior year, and increased 8.0 percent, as compared to fiscal year 2019;
  • Operating income increased 62.7 percent to USD 2.3 billion, and adjusted operating income increased to USD 2.6 billion, as compared to the prior year, while operating income increased 0.4 percent, and adjusted operating income decreased 3.7 percent, as compared to fiscal year 2019;
  • Ebitda increased to USD 3.1 billion, and adjusted Ebitda increased to USD 3.3 billion, in each case as compared to the prior year. On a comparable 52-week basis, Ebitda increased 46.4 percent and adjusted Ebitda increased 58.5 percent, in each case as compared to the prior year. Ebitda increased 0.4 percent and adjusted Ebitda decreased 0.7 percent, in each case as compared to fiscal year 2019; and
  • EPS increased to USD 2.64 compared to USD 1.02 in the prior year. Adjusted EPS increased to USD 3.25 compared to USD 1.44 in the prior year and, on a comparable 52-week basis, increased USD 1.86, or 133.8 percent. EPS decreased USD 0.56, and adjusted EPS decreased USD 0.30, in each case as compared to fiscal year 2019.

«Sysco delivered strong financial results, growing volumes and sales, effectively managing double-digit inflation and improving profitability, all while also strengthening our balance sheet and returning USD 1.5 billion to our shareholders. We have many reasons to be upbeat about our business. While keeping a careful eye on macro-economic developments, we expect to grow adjusted EPS by 26 percent – 35 percent, or USD 4.09 – USD 4.39, for fiscal year 2023,» said Aaron Alt, Sysco’s Chief Financial Officer.

For additional information please read the Company’s PDF file below (333 KB):

20220809-SYSCO-Q4-2022
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