Vending

Sysco boosts Q2 results, misses bottom line expectations due to COVID

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February 8, 2022

Sysco Corp. boosted sales and earnings for Q2 2022, but missed bottom line expectations on account of COVID, according to an earnings release.

Sales rose 41.2% from $11.5 billion in Q2 2021 to $16.32 billion for the quarter ending Jan. 1, 2022.

Earnings jumped 148.8% from $67.3 million to $167.4 million while non-GAAP earnings jumped 240% to $291.9 million. Both basic and diluted earnings per share jumped 153.8% from 13 cents to 33 cents while non-GAAP EPS swelled 235% to 57 cents.

U.S. foodservice sales for the second quarter were $11.5 billion, an increase of 45.1% compared to the same period last year. Case volume within U.S. broadline operations increased 17.6% for the second quarter, while total case volume within U.S. broadline operations increased 22.5%. Both increases represent organic growth.

International foodservice sales for the second quarter were $2.8 billion, an increase of 42.6% compared to the same period last year. On a constant currency basis, sales for the second quarter were $2.8 billion, an increase of 40.9% compared to the same period last year. Foreign exchange rates increased international foodservice operations sales by 1.7% and total Sysco sales by 0.3% during the quarter.

Shares traded today at $77.95 against a 52-week range of $68.05-$86.73.

The $16.32 in quarterly revenue beat analyst expectations by $440 million, while the non-GAAP EPS of 57 cents missed expectations by 13 cents, according to Seeking Alpha.

"Bottom-line results for the quarter were below our expectations due to higher than anticipated operating expenses, driven by the current COVID environment," Kevin Hourican, Sysco's president and chief executive officer, said in the press release. "The omicron variant is currently impacting our customers, affecting their top-line and hours of operations."

For an update on how the coronavirus pandemic has affected convenience services,click here.