Tuesday, February 6th, 2018
With all the ups and down the stock market has faced in recent days, it's nice to finally have some financial certainty, and Sysco is here to provide it: Sysco is set to meet its 2018 financial targets, the company reported based on the 13-week fiscal results for the second quarter, which ended December 30, 2017.
“We are pleased with the continued momentum in our business driven by strong local case growth and overall top-line results, while balancing some gross profit dollar and expense challenges associated with the second quarter,” said Tom Bené, Sysco’s President and Chief Executive Officer. “We remain confident in our ability to deliver on our full-year fiscal 2018 financial targets.”
Some highlights from the report are as follows:
- Sales increased 7.1% to $14.4 billion
- Gross profit increased 5.0% to $2.7 billion; gross margin decreased 38 basis points to 18.73%
- Operating income increased 8.1% to $532 million; adjusted operating income increased 3.9% to $579 million
- Earnings Per Share (EPS) increased $0.04 to $0.54; adjusted EPS increased $0.20 to $0.78; further adjusting to exclude a one-time benefit associated with the recent U.S. tax rate changes, adjusted EPS increased $0.08 to $0.66
Further Broken Down Fiscal results were as follows:
- For Domestic Foodservice operations sales increased 5.2% to $19.5 billion; gross profit increased 4.4% to 3.9 billion and gross margin decrease 14 basis points to $19.98; operating expenses increased by 4.5% or $105 million; operational income increased by $61 million or 4.3% to $1.5 billion
- Internationally Sysco experienced mixed results with improvements in Canada and unfavorable outcomes in Europe
- Cash flow increased by $294 million up to $933 million with a free cash flow of $679 million for the first half of fiscal 2018
- Capital expenditures totaled $255 million, which was down $19 million from last year
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