HOUSTON – Sysco Corporation (NYSE: NYSE:), a leading global food distribution company, today reported modest earnings and revenue beats for the fourth fiscal quarter ended June 29, 2024.
The company reported adjusted earnings per share of $1.39, narrowly beating analysts’ expectations of $1.38. Revenue for the quarter also rose slightly, to $20.6 billion versus expectations of $20.55 billion.
The company’s stock responded positively to the news, rising 2.3%.
Sysco’s fourth-quarter results showed a 4.2% increase in sales compared to the same period last year, reflecting a continued upward trajectory in the company’s financial health. Gross profit rose 4.2% to $3.8 billion, while operating income grew 1.2% to $977 million. Adjusted operating income saw a more significant jump of 6.4% to $1.1 billion.
The U.S. Foodservice segment contributed significantly to overall performance, with sales up 4.9% to $14.4 billion. Gross profit for the segment increased 3.1% to $2.8 billion, although gross margin contracted slightly by 32 basis points to 19.4%.
Cisco’s international foodservice operations also delivered impressive results, with sales up 3.8% to $3.8 billion and gross profit up 8.7% to $787 million. Adjusted operating income in the segment rose a remarkable 13.1% to $164 million.
Sysco reported a 3.3% increase in sales to $78.8 billion for the full fiscal year 2024. The company’s adjusted earnings per share for the year improved 7.5% to $4.31, reflecting a steady growth pattern.
Sysco CEO Kevin Hourican commented on the results, expressing pride in the team’s focus on core business drivers and strategic initiatives. “Our balanced efforts to grow revenue and manage margins have enabled us to deliver strong bottom-line results,” Hourican said.
Looking ahead, Sysco remains confident in its growth algorithm for the coming fiscal year, focusing on the outlook for sustainable growth and operational excellence. The company’s financial outlook projects a CAGR of 4% to 6% for net sales and 6% to 8% for adjusted earnings per share.
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