Sysco has released its Q2 2016 financial report this week, showing rising profits due to higher sales and a drop in its merger-related expenses.
Overall, revenue increased 0.6% to $12.15 billion, while Reuters analysts had only projected $12.14 billion, according to MarketWatch. The company reported net earnings of $272.4 million, or 48 cents a share, up from $158 million, or 27 cents, a year earlier, putting them even closer on track with its three-year plan than the company had previously expected.
Bill DeLaney, Sysco's Chief Executive Officer, said he was pleased with the quarter's results.
“We achieved strong local case growth, while managing gross margins well and also containing operating expense growth,” he said. “Through the first six-months of the year, we are on-track to achieve our financial objectives for the first year of our three-year plan.”
Last September, following the announcement that the company would be pulling out of its merger plans with US Foods, Sysco released details about a new three-year plan that would set expectations on improving its annual operating income by $400 million. The company also announced that by fiscal 2018, it hopes to achieve a 15% return on invested capital by accelerating local case growth, improving gross margins, leveraging its end-to-end supply chain, reducing administrative costs, and generating more than $1 billion in free cash flow per year, according to a press release.
Following the announcement of Sysco beating financial expectations, the company’s stock was up over 8% to hit 43.15 during after hours trading at 4:40 PM EST.
Other highlights from Sysco’s Q2 2016 financial report include:
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