HOUSTON, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Today, Sysco Corporation (NYSE:SYY), the world’s largest food distributor, presented a check for $10,000 to the Houston Food Bank to support the local community where Sysco operates and is headquartered. This is an important time of year for food banks and pantries as they gear up to feed those in need this holiday season. Sysco Houston also donated 2,500 turkeys to the Houston Food Bank which will be distributed to its partner networks across the city. As part of ...

CHICAGO, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Today, Sysco Corporation (NYSE:SYY), the world’s largest food distributor, presented a check for $10,000 to the Northern Illinois Food Bank to support the local community where Sysco operates. Sysco’s donation is part of the company’s signature Nourishing Neighbors® program where a portion of the proceeds from each Sysco branded case sold in local communities is donated back to charitable organizations in those communities. Sysco Chicago also donated 2,500 turkeys ...

Financial Performance - Net earnings for the 13-week period ended September 28, 2024, were $490 million, a decrease from $503 million in the same period last year[57]. - Total sales for Sysco in the 13-week period ended September 28, 2024, were $20,484 million, an increase from $19,620 million in the same period of the previous year, representing a growth of approximately 4.4%[80]. - Operating income for Sysco's U.S. Foodservice Operations was $908 million, a decrease from $941 million year-over-year, reflecting a decline of about 3.5%[81]. - The International Foodservice Operations segment reported operating income of $101 million, up from $93 million, indicating a growth of approximately 8.6%[81]. - Sysco's total operating income for the period was $808 million, slightly up from $804 million in the previous year[81]. Earnings Per Share - Basic and diluted earnings per share remained stable at $1.00 and $0.99, respectively, for the first quarter of fiscal 2025[57]. - The number of securities excluded from the diluted earnings per share calculation was approximately 3,338,000 for the first quarter of fiscal 2025[57]. Comprehensive Income - Comprehensive income increased to $663 million for the first quarter of fiscal 2025, compared to $429 million for the same period in fiscal 2024[58]. Share-Based Compensation - The total share-based compensation cost recognized was $30 million for the first 13 weeks of fiscal 2025, up from $24 million in the prior year[70]. - The weighted average grant-date fair value per option granted was $18.50, with 728,531 options granted in the first 13 weeks of fiscal 2025[66]. - The company granted 461,055 performance share units (PSUs) with a weighted average grant-date fair value of $82.63 during the same period[67]. - The total number of unrecognized compensation costs related to share-based compensation arrangements was $179 million, expected to be recognized over 2.10 years[70]. Taxation - The effective tax rate for the first quarter of fiscal 2025 was 23.7%, higher than the statutory rate of 21.0% due to state income taxes[71]. - For the first quarter of fiscal 2024, the effective tax rate was 24.0%, higher than the statutory tax rate due to state income taxes, partially offset by a foreign income tax benefit[72]. - Sysco recorded a benefit of $131 million related to foreign tax credits, which may need to be reversed if the company is unsuccessful in its ongoing tax litigation[73]. - The OECD's Pillar Two Model Rules, effective for Sysco at the beginning of fiscal 2025, mandate a minimum corporate income tax rate of 15%[74]. Legal Proceedings - The company is engaged in various legal proceedings, with potential losses ranging from remote to reasonably possible, but management does not expect a material adverse effect on financial results[76]. Market Risks - Sysco's market risks include interest rate risk, foreign currency exchange rate risk, fuel price risk, and investment risk, with no significant changes reported since June 29, 2024[82]. Interest Expense - Interest expense increased to $160 million from $134 million, representing a rise of about 19.4%[81].

Sysco Corporation (SYY) delivered first-quarter fiscal 2025 results, wherein the top and bottom lines grew year over year. Earnings missed the Zacks Consensus Estimate, while sales surpassed the same. Sysco’s adjusted earnings of $1.09 per share missed the Zacks Consensus Estimate of $1.13. Nevertheless, the bottom line rose 1.9% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The global food product maker and distributor reported sales of $20,484 million, which jumped ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $20.5 billion, representing a growth of 4.4% compared to the previous year [11] - Adjusted operating income increased by 2.2% for the period, supported by disciplined expense control [11] - Adjusted earnings per share (EPS) was $1.09, a growth of 1.9% year-over-year [12] - Gross profit margin was 18.3%, down 27 basis points from the previous year [24][40] Business Line Data and Key Metrics Changes - U.S. Foodservice volume growth was 2.7%, with national volume growth at 5.5% and local volume growth at 0.2% [11][39] - International business segment grew its top line by 3% and adjusted operating income by 12% [13][46] - SYGMA segment experienced a sales growth of 7.3% and operating income growth of 38.5% [15][47] Market Data and Key Metrics Changes - Food traffic to restaurants decreased by 3.6% in Q1, with improvements noted throughout the quarter [7][8] - Non-restaurant sectors showed strong performance, particularly in the business and industry sector [10] Company Strategy and Development Direction - Sysco is focusing on improving local case growth and enhancing its sales consultant compensation model to drive performance [19][20] - The company plans to divest its joint venture in Mexico to concentrate on higher yield priorities globally [28][38] - Sysco aims to expand its specialty portfolio, targeting a $20 billion specialty business through total team selling initiatives [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in food traffic due to economic factors and actions by the Federal Reserve [8] - The company is confident in achieving its full-year guidance, expecting a more normal rate of top-line growth in the second half of the year [36][50] - Management highlighted the importance of strategic sourcing efforts to positively impact gross profit margins in the latter half of the fiscal year [37][52] Other Important Information - Sysco's adjusted operating expenses were $2.9 billion for the quarter, reflecting a 14.1% of sales [42] - The company generated approximately $53 million in operating cash flow and returned over $359 million to shareholders in Q1 [49] Q&A Session Summary Question: What is driving the stronger exit trends in September and how is October tracking? - Management noted that October's industry traffic is similar to September, with improvements in the last two weeks of October [61] Question: Can you elaborate on the impact of the new compensation model on local case growth? - Management indicated that the new compensation model has stabilized and is expected to positively impact local case growth moving forward [62][63] Question: What external dynamics are affecting U.S. gross margins? - Management identified customer mix and strategic sourcing timing as key factors impacting gross margins, with confidence in future improvements [68][69] Question: What was the nature of the turnover related to the sales force compensation change? - Management acknowledged an increase in turnover during the transition but confirmed that top performers remained and are benefiting from the new model [80][81] Question: How is the sales force adapting to the new compensation model and territory changes? - Management reported that the sales force is adapting well, with team-based selling initiatives showing positive results [90][91]

Earnings Call Overview - Sysco Corporation held its Q1 2025 earnings conference call on October 29, 2024, at 10:00 AM ET [1] - The call featured Kevin Hourican, Chairman and CEO, and Kenny Cheung, CFO, alongside Kevin Kim, VP of Investor Relations [2] Forward-Looking Statements - Statements made during the call regarding the company's intentions, beliefs, expectations, or predictions are forward-looking and subject to material differences in actual results [3] - Additional information on factors that could cause results to differ is available in the company's SEC filings, including the annual report on Form 10-K for the year ended June 29, 2024 [3] Non-GAAP Financial Measures - The company included non-GAAP financial measures in its comments during the earnings call [4]

Sysco (SYY) reported $20.48 billion in revenue for the quarter ended September 2024, representing a yearover-year increase of 4.4%. EPS of $1.09 for the same period compares to $1.07 a year ago. The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $20.45 billion. With the consensus EPS estimate being $1.13, the EPS surprise was -3.54%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Sysco (SYY) came out with quarterly earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -3.54%. A quarter ago, it was expected that this food distributor would post earnings of $1.38 per share when it actually produced earnings of $1.39, delivering a surprise of 0.72%. Over the last four quarters, the company ha ...

SysCO" SysCO" Fiscal Q1 2025 Earnings Results October 29, 2024 Forward-Looking Statements Statements made in this presentation that look forward in time or that express management's beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual resul ...

1 SYSCO REPORTS FIRST QUARTER FISCAL YEAR 2025 RESULTS HOUSTON, October 29, 2024 - Sysco Corporation (NYSE: SYY) ("Sysco" or the "company") today announced financial results for its 13-week first fiscal quarter ended September 28, 2024. Key financial results for the first quarter of fiscal year 2025 include the following (comparisons are to the same period in fiscal year 2024): • Sales increased 4.4%; U.S. Foodservice volume increased 2.7%; • Gross profit increased 2.9% to $3.8 billion; • Operating income i ...