Sysco Corporation reported its financial results for the 13-week period ending September 28, 2024, showing a revenue increase of 4.4% to $20,484 million, up from $19,620 million in the same period of the previous year. This growth was driven by higher sales across its U.S. Foodservice Operations, which generated $14,362 million, a 4.6% increase from $13,724 million in the prior year. The International Foodservice Operations also saw a 3.0% rise in sales, reaching $3,794 million, while SYGMA reported a 7.3% increase to $2,046 million.
Despite the revenue growth, Sysco's net earnings for the quarter decreased by 2.6% to $490 million, down from $503 million in the prior year. Operating income slightly increased to $808 million from $804 million, while earnings before income taxes fell to $642 million from $663 million. The gross profit margin decreased by 27 basis points to 18.3%, influenced by changes in customer mix and reduced penetration of Sysco brand products.
The company’s total assets rose to $25,880 million, up from $24,917 million, with total current assets increasing to $11,875 million from $11,043 million. Cash and cash equivalents also improved, reaching $733 million compared to $696 million at the end of the previous quarter. However, long-term debt increased to $11,869 million from $11,513 million, reflecting new commercial paper issuances and lease obligations.
In terms of strategic developments, Sysco completed the acquisition of Edward Don & Company, which has led to the introduction of "Equipment and smallwares" as a new product category. The company has also focused on transformation initiatives, including the Sysco Driver Academy, aimed at enhancing operational performance.
Cash flows from operations were impacted by a $29 million unfavorable comparison in working capital, primarily due to accounts receivable and inventory. However, free cash flow improved to $8 million from a negative $73 million in the same period last year. Sysco repurchased 1,439,652 shares for $108 million during the quarter and declared a quarterly dividend of $0.51 per share.
Overall, while Sysco experienced revenue growth, profitability metrics showed some declines, prompting the company to continue focusing on strategic initiatives and operational efficiencies to enhance future performance.
About SYSCO CORP
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