Sysco Corporation today announced financial results for its 13-week second fiscal quarter ended December 30, 2023.
Key financial results for the second quarter of fiscal year 2024 include the following (comparisons are to the same period in fiscal year 2023):
- Sales increased 3.7%; U.S. Foodservice volume increased 3.4%; U.S. local volumes grew 2.9%;
- Gross profit increased 4.9% to $3.5 billion;
- Operating income increased 9.2% to $700.0 million, and adjusted1 operating income increased 9.2% to $744.9 million;
- EBITDA increased 82.7% to $914.3 million, and adjusted EBITDA increased 11.6% to $927.5 million2;
- EPS3 increased 192.9% to $0.82, compared to $0.28 in the same period last year, and adjusted1 EPS increased 11.3% to $0.89;
- First half cash flow from operations increased 70.0% to $855.9 million, and free cash flow4 increased 140.5% to $527.4 million;
- The company now expects to return approximately $2.25 billion back to shareholders in fiscal year 2024, raising share repurchase expectations from $750 million to $1.25 billion; and
- Reaffirming fiscal year 2024 guidance expectations for top- and bottom-line growth.
“Second quarter results included adjusted EPS growth of over 11%, fueled by sales and volume growth, combined with positive operating leverage, as we continue to effectively manage margins. Our balanced efforts to deliver compelling top- and bottom-line growth were driven by sequential improvements in volume growth, including local performance, as well as supply chain productivity and implementation of structural cost-out actions. Sysco’s industry leading profitability, size and scale advantages, and strong balance sheet represent a position of strength. Combining our advantages with Sysco’s discipline on profitable growth, we expect to deliver strong results for the remainder of fiscal year 2024 and beyond,” said Kevin Hourican, Sysco’s President and Chief Executive Officer.
“Our second quarter operating profit included our fifth consecutive quarter of positive operating leverage, as gross profit expanded at a faster rate than operating expenses. Additionally, our balanced approach to capital allocation demonstrates the importance of investing in the business and rewarding our shareholders, all anchored by our strong balance sheet and consistent cash generation. Looking ahead, we now expect to return approximately $2.25 billion back to shareholders in fiscal year 2024, through meaningful share repurchases and dividends. Our positive momentum through the first half gives us confidence in reiterating our fiscal year 2024 guidance of mid-single digit sales growth to approximately $80 billion and five to ten percent adjusted EPS growth to $4.20 to $4.40,” said Kenny Cheung, Sysco’s Chief Financial Officer.
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For more information: www.sysco.com