Vending

Sysco lifts Q2 2024 sales, earnings; reaffirms FY guidance

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January 30, 2024

Sysco Corp. lifted its Q2 2024 sales and earnings over the prior year period and reaffirmed its full year guidance, according to an earnings report. Highlights include:

• Sales increased 3.7% from $18.6 billion in Q2 2023 to $19.29 billion for the quarter ending Dec. 30, 2023.
• Net earnings rose from $141.2 million to $415.2 million in the comparative quarters.
• EPS increased 192.9% from 28 cents to 82 cents on both a basic and diluted basis.
• Adjusted EPS increased 11.3% to 89 cents.
• U.S. foodservice sales increased 3.2% from $13.07 billion to $13.5 billion.
• Total case volume within U.S. foodservice grew 3.4% while local case volume within U.S. foodservice increased 2.9%.
• International foodservice sales increased 9.6% from $3.28 billion to $3.6 billion. On a constant currency basis, sales were $3.5 billion, an increase of 6.4%. Foreign exchange rates increased both international foodservice sales by 3.2% and total Sysco sales by 0.5%.

Shares traded today at $80.35 against a 52-week range of $62.24 to $80.41.

The $19.29 billion in quarterly revenue missed analyst expectations by $30 million while the non-GAAP EPS of 89 cents beat expectations by one cent, according to Seeking Alpha.

"Second quarter results included adjusted EPS growth of over 11%, fueled by sales and volume growth, combined with positive operating leverage, as we continue to effectively manage margins," Kevin Hourican, president and CEO, said in the press release. "Combining our advantages with Sysco's discipline on profitable growth, we expect to deliver strong results for the remainder of fiscal year 2024 and beyond."

The company reaffirmed its fiscal year 2024 guidance of mid-single digit sales growth to approximately $80 billion and 5% to 10% adjusted EPS growth of $4.20 to $4.40.