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Sysco Reports Higher Earnings and Revenue in Q2

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4.5

Andrew R. Michaud

• January 30, 2024

By Dean Seal

Sysco, the Houston-based foodservice distributor, announced impressive financial results for the fiscal second quarter, with both earnings and revenue showing improvement. Here are the key details:

Growth in Profit and Earnings

• Sysco reported a profit of $415.2 million, or 82 cents a share, compared to $131.2 million, or 28 cents a share, in the same quarter last year. It's important to note that the previous year's figures included a $315.4 million pension settlement charge.
• After excluding one-time items, adjusted earnings were 89 cents a share, slightly higher than the expected 88 cents a share from analysts polled by FactSet.

Revenue Increase

• The company's revenue reached $19.29 billion in the fiscal second quarter, up from $18.59 billion in the same period the previous year. Although slightly below analyst projections for $19.32 billion, this revenue growth demonstrates Sysco's strength in the market.

Positive Volume and Margin Trends

• Sysco's foodservice business experienced a 3.4% increase in volumes, while local U.S. volumes rose by 2.9%. This rise in volumes indicates a growing demand for Sysco's services.
• Margins also saw a slight improvement, demonstrating the company's ability to effectively manage costs.
• However, there was a 1.1% increase in product costs, mainly within the meat and frozen categories. Sysco continues to monitor this trend closely.

As Sysco continues to navigate through the foodservice industry, these positive financial results in the second quarter highlight its ability to deliver value to its clients while driving profitable growth.