WS Investor
28 Jan 2025, 18:34
Sysco Corporation reported solid financial results for its second fiscal quarter of 2025, ending December 28, 2024. Sales increased by 4.5%, with U.S. Foodservice volume rising by 1.4%. Gross profit grew 3.9% to $3.7 billion, while operating income rose 1.7% to $712 million. Adjusted operating income saw a stronger increase of 5.1% to $783 million. EBITDA grew 1.9% to $931 million, with adjusted EBITDA increasing 4.4% to $969 million. Earnings per share (EPS) remained steady at $0.82, while adjusted EPS increased 4.5% to $0.93.
The company highlighted particularly strong performance in its International segment, which achieved a 14.5% rise in operating income and a 26.5% increase in adjusted operating income. Sysco also noted progress in its local business, including improvements in new customer acquisitions and Net Promoter Scores. Investments in sales professionals and specialty offerings are expected to further enhance local case volume performance in the second half of fiscal 2025.
Sysco reiterated its fiscal year 2025 guidance, forecasting sales growth of 4%-5% and adjusted EPS growth of 6%-7%. The company also increased its planned cash returns to shareholders to $2.25 billion, with share repurchases raised to $1.25 billion (up from $1 billion) and dividends set at $1 billion. CEO Kevin Hourican emphasized confidence in achieving full-year goals, while CFO Kenny Cheung highlighted the company's focus on driving operating leverage, margin expansion, and shareholder returns.
The company highlighted particularly strong performance in its International segment, which achieved a 14.5% rise in operating income and a 26.5% increase in adjusted operating income. Sysco also noted progress in its local business, including improvements in new customer acquisitions and Net Promoter Scores. Investments in sales professionals and specialty offerings are expected to further enhance local case volume performance in the second half of fiscal 2025.
Sysco reiterated its fiscal year 2025 guidance, forecasting sales growth of 4%-5% and adjusted EPS growth of 6%-7%. The company also increased its planned cash returns to shareholders to $2.25 billion, with share repurchases raised to $1.25 billion (up from $1 billion) and dividends set at $1 billion. CEO Kevin Hourican emphasized confidence in achieving full-year goals, while CFO Kenny Cheung highlighted the company's focus on driving operating leverage, margin expansion, and shareholder returns.