Sysco Delivers Robust Fourth Quarter Results; Kevin Hourican Comments

As the foodservice industry bounces back from the impactful events of the past year and a half, Sysco announced its fourth quarter results and noted accelerating sales helped drive growth for the foodservice distributor.

“Sysco’s fourth quarter results were strong, reflecting market share gains and industry demand that has continued to rebound earlier and stronger than expected,” said Kevin Hourican, President and Chief Executive Officer. “While labor and product availability costs are pressuring our industry, we planned ahead to be well-positioned and manage through the demand increase resulting from these transitory pressures. I want to thank all of our Sysco associates for their tireless efforts, in particular those on the frontline who are supporting our customers during one of the most dynamic periods in our history. It is through the collective efforts and commitment of our people that we are advancing our Recipe for Growth strategy, and building important new capabilities that position us to better serve our customers and accelerate profitable growth.”

According to a press release, key financial results for the fourth quarter of fiscal year 2021 included:

• Sales trends improved as markets reopened; fourth quarter sales increased 82.0 percent versus the same period in fiscal year 2020
• Gross profit increased 86.2 percent to $2.9 billion, and gross margin increased 41 basis points to 18.1 percent, as compared to the same period last year
• Operating income increased 207.2 percent to $569.7 million, and adjusted operating income increased to $605.2 million
• Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) increased to $778.6 million, and adjusted EBITDA increased to $781.1 million

With sales stronger than expected, Sysco noted that its international operations are showing profit improvement and that its share gains are continuing. The company also remarked that the Delta variant shows no sign of impacting demand.

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