Vending

Sysco raises Q1 2022 sales, earnings

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November 9, 2021

Sysco Corp. delivered strong sales and earnings for the 2022 first quarter, taking the company close to pre-COVID levels, according to an earnings release.

Sales for the quarter rose 39.7% from $11.8 billion in Q1, 2021 to $16.5 billion for the quarter ending Oct. 2, 2022, and increased 8.2% versus the same period in fiscal year 2019.

Earnings increased 147.9% from $173.5 million to $429.9 million for the comparative quarters.

Diluted earnings per share increased from 42 cents to 73 cents, while basic earnings per share increased from 43 cents to 74 cents. Adjusted EPS increased from 34 cents to 83 cents.

U.S. foodservice operations sales for the first quarter were $11.6 billion, an increase of 46.5% compared to the same period last year.

International foodservice sales for the first quarter were $2.9 billion, an increase of 33.8% compared to the same period last year.

The $16.5 billion in quarterly revenue surpassed analyst expectations by $650 million, while the non-GAAP EPS of 83 cents missed expectations by 4 cents and the GAAP EPS of 73 cents missed by 8 cents, according to Seeking Alpha.

Shares traded at $81.17 today against a 52-week range of $67.30-$86.73.

"These results reflected sequential top-line improvements and another quarter of net new business wins, continued efficient pass through of inflation, including an increase in gross profit per case, as well as substantial effort by our merchandising team to improve customer fill rates despite ongoing supply challenges," Kevin Hourican, Sysco president and CEO, said in the release.

"Notwithstanding significant snap back and transformation costs in the quarter, we generated EBITDA comparable to pre-COVID 2019 levels," Aaron Alt, Sysco CFO, said in the release. "We will continue to deploy Sysco's strong cash flow and balance sheet consistent with our capital allocation strategy, as we invest for growth, maintain strong ratings and return capital to shareholders."

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