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Sysco Reports 19.6B Gain for Q1 of 2023; Kevin Hourican and Kenny Cheung Detail

Sysco Reports 19.6B Gain for Q1 of 2023; Kevin Hourican and Kenny Cheung Detail

Tuesday, November 7th, 2023

Advancements across foodservice volume, productivity, and more are sparking continued growth for Sysco. With the release of its financial results for the 13-week first fiscal quarter ended September 30, 2023, the distributor unveiled a 2.6 percent sales increase, rising to $19.6 billion for Q1.

Kevin Hourican, President and Chief Executive Officer, Sysco“We advanced our competitive advantages as the global leader in foodservice distribution through our Recipe for Growth strategy,” said Kevin Hourican, President and Chief Executive Officer, in reference to the financial results. “This includes our planned acquisition of Edward Don & Company, one of the largest kitchen equipment and supplies distributors, which will add new capabilities and diversified offerings to our product assortment. Combining DON and Sysco will enable us to better serve our hundreds of thousands of customers with a more complete restaurant and hospitality assortment. Sysco’s strong profitability, size and scale advantages, and balance sheet position us for profitable growth for the remainder of fiscal year 2024 and beyond.”

Sysco grew operating income by 9.1 percent and adjusted operating income by 10.6 percent, as explained in a press release. Hourican also noted that this success was fueled by volume growth, excellent margin management, and disciplined productivity improvement.

Sysco’s first quarter sales were recorded at $19.6 billion, an increase of 2.6 percent compared to the same period last year

Other highlights from the report include:

  • Gross profit increased 4.6 percent to $3.6 billion
  • Adjusted operating income increased 10.6 percent to $854.3 million
  • EBITDA increased 10.5 percent to $1 billion, and adjusted EBITDA increased 11.7 percent to $1 billion

Kenny Cheung, Chief Financial Officer, Sysco“Our record first quarter operating profit of $803.6 million included meaningful gross margin expansion and positive operating leverage,” said Kenny Cheung, Chief Financial Officer. “Looking ahead, we plan to deliver continued productivity gains. Adding to our track record, we rewarded our shareholders by returning approximately $352.9 million of cash during the quarter. Our positive momentum in the first quarter gives us confidence in reiterating our FY24 guidance of mid-single digit sales growth to approximately $80 billion and five to ten percent adjusted EPS growth to $4.20 to $4.40.”

To view the report in further detail, click here.

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