Sysco Announces Q2 Earnings, Reports Revenue Growth
HOUSTON, TX – Sysco Corporation announced the financial results of the company’s second quarter this Monday, February 6, showing significant growth in profits on the heels of acquiring U.K.-based Brakes Group last year.
“I am pleased with the quality of our second quarter performance, which was driven by disciplined volume growth and sound margin and expense management,” said Sysco CEO Bill DeLaney, in a company statement. “We are encouraged by our consistently strong financial results over the past two years, and are confident that our ongoing focus on supporting the needs of our customers positions us well for future success.”
Highlights from the report include the following:
- Sales increased 10.7% to $13.5 billion; excluding Brakes, sales decreased 0.2% to $12.1 billion
- Gross profit increased 19.2% to $2.6 billion, and gross margin increased 137 basis points to 19.11%; excluding Brakes, gross profit increased 2.9% to $2.2 billion and gross margin increased 55 basis points to 18.29%
- Operating income increased 13.8% to $492 million; adjusted operating income increased 27.7% to $558 million; excluding Brakes, adjusted operating income increased 12.6% to $492 million
- Earnings Per Share (EPS) increased $0.02 to $0.50; adjusted EPS increased $0.10 to $0.58; excluding Brakes, adjusted EPS increased $0.03 to $0.51
While domestic foodservice operations were relatively stable—with Q2 sales at $9.1 billion, a decrease of 0.5 percent—the company’s international foodservice operations saw robust growth. International Q2 sales were $2.6 billion—double the same period last year—and operating income increased from $43 million last year to $85 million, which the company says was primarily thanks to the acquisition of Brakes Group.
Sysco also attributed significant improvements in cash flow to higher earnings, improved working capital, and payments made in the prior year related to a proposed merger with US Foods; though higher year-over-year cash taxes somewhat offset these benefits.
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