Sysco Profit Soars Following Strategic Expense Management Moves
Sysco Profit Soars Following Strategic Expense Management Moves
HOUSTON, TX – Foodservice distributor Sysco Corp. has recently released its Q3 earnings report for 2016 showing a $60 million improvement in adjusted operating income. For the third fiscal quarter ended March 26, the earnings report showed a sales increase of 2.2 percent to $12 billion, and gross profit increase of 4.1 percent to $2.1 billion for the company.
Bill DeLaney, Sysco’s Chief Executive Officer“Our third quarter financial results were strong as we remained focused on servicing the needs of our customers and made steady progress toward our three-year plan financial objectives,” said Bill DeLaney, Sysco’s Chief Executive Officer, in a press release. “As a result, we generated solid gross profit dollar growth of 4 percent, while effectively managing ongoing deflationary pressures.”
Other findings in the Q3 report included:
- Gross margin increased 35 base points to 17.8 percent
- Adjusted operating income grew 16.0 percent to $438 million
- Net earnings increased 22.7 percent to $217 million, up from last year’s $176.9 million
The report also revealed that adjusted earnings per share (EPS) increased $0.06 to $0.46. Sysco shares are trading up in light of the report, with share value sharply increasing 2.19 points (4.76 percent) since the opening bell on Monday.
Graphic credited to Google Finance.The Q3 earnings report comes at the heels of last month’s announcement of three new executives, Greg Bertrand, Scott Sonnemaker, and Bill Goetz, who will assume their new posts at Sysco this July.
- Greg Bertrand has been named Senior Vice President for U.S. Foodservice Operations. He will direct all of Sysco’s U.S. broadline operating companies.
- Scott Sonnemaker will be Senior Vice President for International Foodservice Operations in the Americas, responsible for Sysco Canada, Bahamas Foodservices, International Food Group, and Sysco’s joint ventures in Costa Rica and Mexico.
- Bill Goetz will serve as Senior Vice President for Sales and Marketing
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