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Sysco Reports on U.S. Foodservice Growth for Q2 Fiscal 2020

Sysco Reports on U.S. Foodservice Growth for Q2 Fiscal 2020


HOUSTON, TX
Tuesday, February 4th, 2020

Sysco continues to trend in the upward growth direction, announcing new partners and new facilities all within the same month of January. As the month came to a close, the company then released its Q2 2020 results, reporting an overall increase in both sales and profits. Its foodservice operations, both in the U.S. and abroad, saw favorable results, indicating significant growth in the sector.

According to the financial report, the company’s organics operations were a source of growth in the foodservice sector, and though food cost inflation in the U.S. was up by 2.6 percent, it did not negatively impact Sysco’s foodservice sales.

Joel Grade, Chief Financial Officer, Sysco“Our second quarter fiscal 2020 results were driven by improved local case growth in our U.S. foodservice segment, particularly within our independent customers,” said Joel Grade, Chief Financial Officer. “While our adjusted earnings per share were in-line with expectations for the quarter, our operating income results fell short. We remain focused on executing against all of our strategic initiatives to strengthen our long-term performance while maintaining our focus on the customer.”

Some of the highlights of Sysco’s foodservice Q2 growth included:

  • U.S. sales at $10.4 billion, an increase of 3.2 percent
  • U.S. gross profit at $2.0 billion, an increase of 2.4 percent
  • International sales at $2.9 billion, no increase
  • International gross profit at $586.0 million, a decrease of 0.7 percent

To read the financial report in its entirety, click here.

Sysco's foodservice operations, both in the U.S. and abroad, in particular saw favorable results, indicating significant growth in the sector

How will this success in foodservice continue to bolster the distributor’s operations? Will we soon see more facilities? Deli Market News will keep its eyes on the newswire.

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