Sysco Reports US Foods Merger Delay and $12.4 Billion in Sales in Q1 Financial Report
HOUSTON, TX – Sysco released its Q1 2015 earnings report Monday, November 3rd, 2014, reporting a 6.2% increase in sales to $12.4 billion. Among the parts of report getting the biggest headlines, however, is Sysco's admission that its impending merger with US Foods will be delayed as a result of ongoing discussions with the FTC. Sysco now does not expect it to be completed before the first quarter of 2015.
Despite the setback, President and CEO Bill DeLaney struck a positive note in his comments, focusing on the company's strong fiscal performance during Q1.
“We are pleased with the solid operating performance we delivered in our first fiscal quarter in the midst of ongoing challenging market conditions," DeLaney shared in a company press release. "While we were challenged with expense management in certain aspects of our business, we generated 2% case volume growth and managed acute inflationary pressures very effectively. Our improved performance during the quarter was due in part to the benefits we realized from our portfolio of business transformation initiatives, especially category management.”
Some highlights from the report included:
- A 6.2% increase in sales to $12.4 billion, compared to $11.7 billion during Q1 2014.
- A 6.0% increase in gross profit to $2.2 billion.
- A 4 basis point reduction in gross margin to 17.59%.
- A 5.9% increase in adjusted operating income to $509 million, adjusted for certain items principally related related to merger and integration planning expenses.
- A 6.1% increase in adjusted diluted earnings per share to $0.52 (non-adjusted diluted earnings per share were $0.47, a 2.1% decrease compared to last year).
Stay tuned to AndNowUKnow for any future updates on Sysco, US Food, and the two companies' impending merger as they develop.
