Sysco Corp (SYY) Reports 2.6% Sales Increase and 9.1% Operating Income Growth in Q1 FY2024
Sysco Corp (NYSE:SYY) reports a 2.6% increase in sales and a 9.1% rise in operating income for Q1 FY2024.
Adjusted EPS grew by 10.3% to $1.07, with the company returning approximately $352.9 million to shareholders.
The company's gross profit increased by 4.6% to $3.6 billion, with operating income rising to $803.6 million.
Sysco Corp (NYSE:SYY) reiterates its FY2024 guidance, targeting to return approximately $1.75 billion to shareholders.
On October 31, 2023, Sysco Corp (NYSE:SYY) announced its financial results for the first quarter of fiscal year 2024. The company reported a 2.6% increase in sales and a 9.1% rise in operating income. The U.S. Foodservice volume increased by 1.6%, and the gross profit rose by 4.6% to $3.6 billion. The operating income increased by 9.1% to $803.6 million, and the adjusted operating income increased by 10.6% to $854.3 million.
Financial Highlights
The company's EBITDA increased by 10.5% to $1.0 billion, and the adjusted EBITDA increased by 11.7% to $1.0 billion. The EPS increased by 8.8% to $0.99, and the adjusted EPS increased by 10.3% to $1.07. Sysco Corp (NYSE:SYY) returned approximately $352.9 million of capital to shareholders via $100.0 million of share repurchases and $252.9 million of dividends. The company remains on target to return approximately $1.75 billion back to shareholders in FY 2024.
Company Performance and Strategy
Sysco Corp (NYSE:SYY) delivered compelling earnings results, growing operating income by 9.1% and adjusted operating income by 10.6%. This growth was fueled by volume growth, excellent margin management, and disciplined productivity improvement. The company continued to improve efficiency, with progress in supply chain productivity and implementation of structural cost-out actions. Sysco Corp (NYSE:SYY) advanced its competitive advantages as the global leader in foodservice distribution through its Recipe for Growth strategy.
Financial Tables
The company's total sales for the first quarter were $19.6 billion, an increase of 2.6% compared to the same period last year. The gross profit increased by 4.6% to $3.6 billion, and the gross margin increased by 35 basis points to 18.6%. The operating income was $803.6 million, an increase of 9.1% compared to the same period last year. The adjusted operating income was $854.3 million, an increase of 10.6% compared to the same period last year.
Looking Ahead
Looking ahead, Sysco Corp (NYSE:SYY) plans to deliver continued productivity gains and aims to reward its shareholders by returning approximately $352.9 million of cash during the quarter. The company's positive momentum in the first quarter gives it confidence in reiterating its FY24 guidance of mid-single digit sales growth to approximately $80 billion and five to ten percent adjusted EPS growth to $4.20 to $4.40.
Explore the complete 8-K earnings release (here) from Sysco Corp for further details.
This article first appeared on GuruFocus.
