Vending

Sysco posts strong Q4 2021 sales and earnings rebound

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August 10, 2021

Sysco Corp. posted sales and earnings gains for the fourth quarter ending July 3, 2021 as the industry rebounds from the 2020 setback, according to a press release.

Sales for the fourth quarter rose 82% from $8.9 billion in Q4, 2020 to $16.1 billion, as select geographic markets continued to drive the recovery as restrictions ease.

Net earnings rose from a $618.4 million loss to a $151 million gain in the comparative quarters.

Both basic and diluted earnings per share rose from a $1.22 loss to a 29-cent gain. Diluted EPS adjusted for certain items (non-GAAP) rose from a 29-cent loss to a 71-cent gain.

U.S. foodservice operations rose from $6.1 billion in Q4, 2020 to $11.5 billion for Q4, 2021.

The international foodservice operations segment experienced expected operating income improvement compared to the prior quarter and prior year. Sales for the fourth quarter were $2.5 billion, an increase of 83.4% compared to the same period last year.

For fiscal 2021, U.S. foodservice operations sales were $35.7 billion, a decrease of 2.9% compared to the prior year. Local case volume within U.S. broadline operations decreased 1.1% for fiscal 2021, of which a decrease of 1.2% was organic, while total case volume within U.S. broadline operations decreased 5.8%, of which a decrease of 5.9% was organic.

International U.S. foodservice operations sales for fiscal 2021 were $8.4 billion, a decrease of $1.3 billion, or 13.7%, compared to the prior year.

The $16.1 billion in quarterly revenue beat analyst expectations by $1.49 billion while the non-GAAP EPS of 71 cents beat expectations by 11 cents and the GAAP EPS of 29 cents missed expectations by 27 cents, according to Seeking Alpha.

Shares traded today at $76.81 against a 52-weeek range of $53.85-$86.73.

"Sysco's fourth quarter results were strong, reflecting market share gains and industry demand that has continued to rebound earlier and stronger than expected," Kevin Hourican, Sysco's president and chief executive officer, said in the press release. "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."