HOUSTON - Sysco Corporation (NYSE: NYSE:SYY), a global leader in food distribution, reported a modest beat on both earnings and revenue for its fourth fiscal quarter ended June 29, 2024.
The company announced an adjusted EPS of $1.39, narrowly surpassing the analyst consensus of $1.38. Revenue for the quarter also edged higher, reaching $20.6 billion against 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 also saw a 4.2% rise to $3.8 billion, while operating income grew by 1.2% to $977 million. Adjusted operating income saw a more significant jump of 6.4% to $1.1 billion.
The company's U.S. Foodservice Operations segment contributed notably to the overall performance, with sales increasing by 4.9% to $14.4 billion. This segment's gross profit increased by 3.1% to $2.8 billion, although gross margin contracted slightly by 32 basis points to 19.4%.
Sysco's International Foodservice Operations also delivered impressive results, with sales up 3.8% to $3.8 billion and gross profit climbing 8.7% to $787 million. Adjusted operating income in this segment rose by a remarkable 13.1% to $164 million.
For the full fiscal year 2024, Sysco reported a 3.3% increase in sales to $78.8 billion. The company's adjusted EPS for the year improved by 7.5% to $4.31, reflecting a consistent growth pattern.
Sysco's 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 top-line and manage margins enabled us to deliver solid bottom-line results," Hourican stated.
Looking ahead, Sysco remains confident in its growth algorithm for the next fiscal year, emphasizing expectations for sustainable growth and operational excellence. The company's financial outlook projects a compounded annual growth rate of 4%-6% for net sales and 6%-8% for adjusted EPS.
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