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Sysco(SYY) - 2025 Q2 - Quarterly Report
SYYSysco(SYY)2025-01-28 22:41

Financial Performance - Net earnings for the 13-week period ended December 28, 2024, were 406million,comparedto406 million, compared to 415 million for the same period in 2023, reflecting a decrease of approximately 2.2%[58] - Basic earnings per share for the 13-week period ended December 28, 2024, were 0.83,slightlyupfrom0.83, slightly up from 0.82 in the prior year[58] - Comprehensive income for the second quarter of fiscal 2025 was 176million,downfrom176 million, down from 552 million in fiscal 2024, indicating a decline of approximately 68%[59] - The total comprehensive income for the first 26 weeks of fiscal 2025 was 839million,comparedto839 million, compared to 982 million for the same period in 2024, representing a decrease of about 14.5%[59] - Total operating income for Sysco was 712millionforthe13−weekperiodendedDec.28,2024,comparedto712 million for the 13-week period ended Dec. 28, 2024, compared to 700 million for the same period in 2023, reflecting a growth of 1.7%[85] - Earnings before income taxes were 533millionforthe13−weekperiodendedDec.28,2024,comparedto533 million for the 13-week period ended Dec. 28, 2024, compared to 545 million in the same period in 2023, indicating a decrease of 2.2%[85] Sales Performance - U.S. Foodservice Operations sales increased to 14,044millionforthe13−weekperiodendedDec.28,2024,comparedto14,044 million for the 13-week period ended Dec. 28, 2024, compared to 13,494 million for the same period in 2023, representing a growth of 4.1%[85] - Total sales for Sysco reached 20,151millionforthe13−weekperiodendedDec.28,2024,upfrom20,151 million for the 13-week period ended Dec. 28, 2024, up from 19,288 million in the prior year, marking an increase of 4.5%[85] - International Foodservice Operations reported sales of 3,728millionforthe13−weekperiodendedDec.28,2024,anincreasefrom3,728 million for the 13-week period ended Dec. 28, 2024, an increase from 3,597 million in the prior year, representing a growth of 3.6%[85] - SYGMA's sales increased to 2,116millionforthe13−weekperiodendedDec.28,2024,comparedto2,116 million for the 13-week period ended Dec. 28, 2024, compared to 1,914 million in the same period last year, showing a growth of 10.6%[85] Shareholder Information - The weighted-average diluted shares outstanding for the 13-week period ended December 28, 2024, were 492,803,849, compared to 505,929,342 in the prior year[58] - Approximately 3,161,000 securities were excluded from the diluted earnings per share calculation for the second quarter of fiscal 2025 due to anti-dilutive effects[58] - In the first 26 weeks of fiscal 2025, the total share-based compensation cost recognized was 60million,upfrom60 million, up from 53 million in the same period of fiscal 2024[75] - Sysco granted 466,716 performance share units (PSUs) in the first 26 weeks of fiscal 2025, with a weighted average grant-date fair value of 82.63[72]−Thecompanyexpectstorecognize82.63[72] - The company expects to recognize 152 million of unrecognized compensation cost related to share-based compensation arrangements over a weighted-average period of 1.93 years[75] Other Comprehensive Income - Other comprehensive income (loss) for the 13-week period ended December 28, 2024, included a foreign currency translation adjustment of (257)million[60]−Thecompanyreportedatotalothercomprehensiveincome(loss)of(257) million[60] - The company reported a total other comprehensive income (loss) of (222) million for the 13-week period ended December 28, 2024[60] - The total other comprehensive income for the 26-week period ended December 30, 2023, was 65million,reflectingasignificantimprovementcomparedtothepreviousyear[65]−Thecompanyexperiencedaforeigncurrencytranslationadjustmentof65 million, reflecting a significant improvement compared to the previous year[65] - The company experienced a foreign currency translation adjustment of 55 million for the 26-week period ended December 30, 2023[65] - As of December 28, 2024, the total accumulated other comprehensive loss was 1,396million,anincreasefrom1,396 million, an increase from 1,166 million as of September 28, 2024[67] Tax and Legal Matters - The effective tax rate for the first 26 weeks of fiscal 2025 was 23.8%, higher than the statutory tax rate of 21.0% due to state income taxes[76] - As of December 28, 2024, the gross amount of unrecognized tax benefits was 35million,withrelatedaccruedinterestof35 million, with related accrued interest of 13 million[78] - Sysco's legal proceedings are assessed as ranging from remote to reasonably possible, with management believing that the outcomes will not materially affect the company's financial position[82] Operating Expenses - Interest expense for Sysco was 160millionforthe13−weekperiodendedDec.28,2024,upfrom160 million for the 13-week period ended Dec. 28, 2024, up from 150 million in the same period last year[85] - Sysco's Global Support Center incurred an operating loss of 240millionforthe13−weekperiodendedDec.28,2024,slightlyimprovedfromalossof240 million for the 13-week period ended Dec. 28, 2024, slightly improved from a loss of 247 million in the same period last year[85] Market Risks - There have been no significant changes to Sysco's market risks since June 29, 2024, which include interest rate risk, foreign currency exchange rate risk, fuel price risk, and investment risk[169]