シスコは、2025会計年度第1四半期の結果を報告しています。
2024年10月29日、ヒューストン - Sysco Corporation（nyse：SYY）（以下「Sysco」または「会社」）は、2024年9月28日に終了した13週間の第1四半期の財務結果を本日発表しました。
2025会計年度の第1四半期の主要財務結果には、以下が含まれます（比較は2024会計年度の同じ期間とされる）:
•売り上げは4.4％増加しました。米国フードサービスの出来高は2.7％増加しました。
•粗利益は2.9％増の38億ドルに上昇しました;
•営業利益は0.5％増の80800万ドルに増加し、調整後の営業利益は2.2％増の87300万ドルに増加しました1;
•EBITDAは10億ドルに、調整後EBITDAは11億ドルに増加しました。1,2；および
•EPS3 調整後1株当たりの利益（eps）は、前年同期に比べて0.99ドルで横ばいとなりました。1 1.09ドルと1.9％増加しました。
•FY25のガイダンスを繰り返し、売上成長率は4-5％、調整後のeps成長率は6-7％です。
第四半期のシスコの財務業績には、アメリカ、国際、およびSYGMAセグメント全体で売上高が増加しました。四半期ごとの業績の多くの側面に満足しており、業績の改善の機会を見ています。国際部門は成長ベクターであり、四半期に営業収益が8.6%増加し、調整後の営業収益が12.1%増加しました。スペシャルティは市場で勝利し続け、売り上げチーム全体の勢いと勢いが続いています。重要なことに、9月になると売上高と利益の成長率が向上しました。第二半期において地域の出来高成長とマージンを加速する計画を実行する自信があります。シスコの取締役会の議長兼最高経営責任者であるケビン・ハウリカン氏は「プランを実行する自信があります」と述べました。
第1四半期の結果には、9月における改善された退出率と、強力な投資とイニシアティブのパイプラインが含まれており、売上成長率4％〜5％と調整後EPS成長率6％〜7％の年間ガイダンスへの信懇智能を高めています。私たちは、最近の行動が構造的な財務改善をもたらしており、ボリュームが改善するにつれて、業種のリーダーとしてのSyscoの成長がさらに良い位置になると信じています。さらに、私達は、会計年度に株主に約20億ドルを返却することを目指して進んでいます。と、Syscoのchief financialオフィサーであるケニー・チョンは述べています。
2025年会計第1四半期の結果 (比較は2024会計年度の同じ期間となります)
トータルサイスコ
第一四半期の売上高は4.4%増の205億ドルに増加しました。
1 調整後の財務結果には、調整後の運営費、調整後の運営利益（損失）、調整後の1株当たり利益（EPS）、調整後のEBITDAなどが含まれ、他にも特定の項目を除外した非GAAP財務指標です。主に買収関連費用、リストラおよび人員削減コスト、および変革プロジェクトコストなどが含まれます。全ての非GAAP財務指標を最も近い対応するGAAP財務指標に調整した内容は、このリリースの最後に記載されています。
2 利息、税金、減価償却費および償却前利益（EBITDA）と調整後EBITDAは、非GAAP財務指標です。全セクターの非GAAP財務指標と最も近い対応するGAAP財務指標との調整は、このリリースの最後に含まれています。
3 1株当たり利益（EPS）は、特に指定されていない限り、希薄化後に表示されます。
1
粗利益は2.9%増の38億ドルに増加し、粗利率は27ベーシスポイント減の18.3%に減少しました。製品コストのインフレ率は、Syscoの製品コストの推定変化によって、主に家禽や乳製品のカテゴリーで全社レベルで2.2%でした。第1四半期の粗利益の増加は、主に販売量の増加と製品コストのインフレ率の効果的な管理によるものでした。
営業費用は増加しました3.6％、増加したボリューム、原材料のインフレーション、および販売コストの増加により。調整後の営業費用は3.1％増加しました。
営業利益は80800万ドルに増加し、調整後の営業利益は873百万ドルに増加しました。
アメリカ合衆国のフードサービスオペレーション
US食品サービスオペレーションセグメントの業績は、売上高の増加によりプラスの影響を受けましたが、ミックス変更や販売への投資によるマージン圧力が相殺されました。
第1四半期の売上は144億ドルに増加し、4.6%増加しました。米国内フードサービス内の総ケース出荷量は第1四半期に2.7%増加しましたが、米国内フードサービス内の地域ケース出荷量は0.2%増加しました。
粗利益は2.3％増の27億ドルに増加し、粗利率は基準ポイント43ポイント減の19.1％に減少しました。
営業費用が5.4%増加し、調整後の営業費用が5.3%増加しました。
営業利益は、調整後に355億ドルの90800万ドルに減少し、調整後の営業利益は、325億ドルの92500万ドルに減少しました。
国際フードサービスオペレーション
国際フードサービスオペレーションセグメントは、売上成長、効果的なマージン管理、そして異常な利益成長を実現しました。
第1四半期の売上高は、為替レートを一定とした場合に3.0%増の38億ドルとなりました。4第1四半期の売上高は、前年比2.9%増の38億ドルであり、外国為替レートは、同四半期中に国際フードサービスオペレーションの売上高を500万ドル、Syscoの総売上高を500万ドル増加させました。
粗利益は5.7%増の77400万ドルに増加し、粗利率は52ベースポイント増の20.4%に増加しました。為替レートが一定である基準で4粗利益は5.1%増の76900万ドルに増加しました。外国為替レートは四半期中に国際フードサービス事業の粗利益を0.6%、Syscoの総粗利益を0.2%増加させました。
営業費用は5.3%増加し、調整後の営業費用は4.5%増加しました。通貨ベースでは4、調整後の営業費用は3.7%増加しました。外国為替レートにより、インターナショナルフードサービスオペレーションの営業費用が0.8%、Sysco全体の営業費用が0.2%増加しました。四半期中。
営業利益は10100万ドルに増加し、調整後の営業利益は13000万ドルに増加しました。常に通貨ベースで4、調整後の営業利益は13000万ドルで、12.1％増加しました。
4 通貨の調整を表しており、現在の年の結果に外国通貨の変動の影響を除外します。これらの調整後の数値は非GAAP財務指標です。全非GAAP財務指標を最も近い対応するGAAP財務指標に調整した内容は、本リリースの最後に含まれています。
2
貸借対照表、キャッシュフロー、資本支出
四半期末時点で、企業の現金残高は73300万ドルでした。
2025年度の最初の13週間で、シスコは株主に35900万ドルを配当として10800万ドルのシェアリパーチェスと25100万ドルの配当を通じて還元しました。
2025会計年度の最初の13週間の営業キャッシュフローは5,300万ドルであり、前年の同時期比で3,400万ドル減少しました。
2025会計年度の最初の13週間の固定資産の取得金額（プラント・設備の売却額を差し引いた額）は4500万ドルでした。
フリーキャッシュフロー5 2025会計年度の最初の13週のフリーキャッシュフローは800万ドルで、前年同期比8100万ドル改善されました。
5 Free cash flow is a non-GAAP financial measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations for all non-GAAP financial measures are included at the end of this release.
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Conference Call & Webcast
Sysco will host a conference call to review the company’s first quarter fiscal year 2025 financial results on Tuesday, October 29, 2024, at 10:00 a.m. Eastern Daylight Time. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com.
Key Highlights: | |||||||||||
| 13-Week Period Ended | |||||||||||
| Financial Comparison: | September 28, 2024 | September 30, 2023 | Change | ||||||||
| GAAP: | |||||||||||
| Sales | $20.5 billion | $19.6 billion | 4.4% | ||||||||
Gross Profit | $3.8 billion | $3.6 billion | 2.9% | ||||||||
| Gross Margin | 18.3% | 18.6% | -27 bps | ||||||||
Operating Expenses | $2.9 billion | $2.8 billion | 3.6% | ||||||||
| Operating Income | $808 million | $804 million | 0.5% | ||||||||
| Operating Margin | 3.9% | 4.1% | -16 bps | ||||||||
| Net Earnings | $490 million | $503 million | -2.6% | ||||||||
| Diluted Earnings Per Share | $0.99 | $0.99 | —% | ||||||||
Non-GAAP (1): | |||||||||||
Gross Profit | $3.8 billion | $3.6 billion | 2.9% | ||||||||
| Gross Margin | 18.3% | 18.6% | -27 bps | ||||||||
| Operating Expenses | $2.9 billion | $2.8 billion | 3.1% | ||||||||
| Operating Income | $873 million | $854 million | 2.2% | ||||||||
| Operating Margin | 4.3% | 4.4% | -9 bps | ||||||||
| EBITDA | $1.0 billion | $1.0 billion | 3.4% | ||||||||
| Adjusted EBITDA | $1.1 billion | $1.0 billion | 4.4% | ||||||||
| Net Earnings | $540 million | $542 million | -0.4% | ||||||||
Diluted Earnings Per Share (2) | $1.09 | $1.07 | 1.9% | ||||||||
| Case Growth: | |||||||||||
| U.S. Foodservice | 2.7% | 1.6% | |||||||||
| Local | 0.2% | -0.1% | |||||||||
Sysco Brand Sales as a % of Cases (3): | |||||||||||
| U.S. Broadline | 36.5% | 37.1% | -59 bps | ||||||||
| Local | 47.0% | 47.5% | -55 bps | ||||||||
Note: | |||||||||||
(1) Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measures are included at the end of this release. | |||||||||||
(2) Individual components in the table above may not sum to the totals due to the rounding. | |||||||||||
(3) Amounts reflect the impact of current customer classifications; prior period history has been reclassified to match the current period customer classification. | |||||||||||
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| Forward-Looking Statements | ||
Statements made in this press release or in our earnings call for the first quarter of fiscal year 2025 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. These statements include statements concerning: our expectations regarding future improvements in productivity; our belief that improvements in our organizational capabilities will deliver compelling outcomes in future periods; our expectations regarding improvements in international volume; our expectations that our transformational agenda will drive long-term growth; our expectations regarding volume growth and benefits to gross margins; our expectations regarding the continuation of an inflationary environment; our expectations regarding improvements in the efficiency of our supply chain; our expectations regarding the impact of our Recipe for Growth strategy and the pace of progress in implementing the initiatives under that strategy; our expectations regarding Sysco’s ability to outperform the market in future periods; our expectations that our strategic priorities will enable us to grow faster than the market; our expectations regarding our efforts to reduce overtime rates and the incremental investments in hiring; our expectations regarding the expansion of our Sysco Driver Academy and our belief that the academy will enable us to provide upward career path mobility for our warehouse colleagues and improve colleague retention; our expectations regarding the benefits of the six-day delivery and last mile distribution models; our plans to improve the capabilities of our sales team; our plans to refine our engineering labor standards; our expectations regarding the impact of our growth initiatives and their ability to enable Sysco to consistently outperform the market; our expectations to exceed our growth target by the end of fiscal 2025; our ability to deliver against our strategic priorities; economic trends in the United States and abroad; our belief that there is further opportunity for profit in the future; our future growth, including growth in sales and earnings per share; the pace of implementation of our business transformation initiatives; our expectations regarding our ability to execute our balanced approach to capital allocation and rewarding our shareholders; our plans to improve colleague retention, training and productivity; our belief that our Recipe for Growth transformation is creating capabilities that will help us profitably grow for the long term; our expectations regarding our long-term financial outlook; our expectations of the effects labor harmony will have on sales and case volume, as well as mitigation expenses; our expectations for customer acquisition in the local/street space; our expectations regarding the effectiveness of our Global Support Center expense control measures; and our expectations regarding the growth and resilience of our food away from home market. | ||
| It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Sysco’s control. Therefore, you should not place undue reliance on any of the forward-looking statements contained herein. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Report on Form 10-K for the year ended June 29, 2024, as filed with the SEC, and our subsequent filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law. | ||
5
About Sysco
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 76,000 colleagues, the company operates 340 distribution facilities worldwide and serves approximately 730,000 customer locations. For fiscal year 2024 that ended June 29, 2024, the company generated sales of more than $78 billion. Information about our Sustainability program, including Sysco’s 2023 Sustainability Report and 2023 Diversity, Equity & Inclusion Report, can be found at www.sysco.com.
For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoFoods. For important news and information regarding Sysco, visit the Investor Relations section of the company’s Internet home page at investors.sysco.com, which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. In addition, investors should continue to review our news releases and filings with the SEC. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information.
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| Sysco Corporation and its Consolidated Subsidiaries CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) (In Millions, Except for Share and Per Share Data) | |||||||||||
| Quarter Ended | |||||||||||
| Sep. 28, 2024 | Sep. 30, 2023 | ||||||||||
| Sales | $ | 20,484 | $ | 19,620 | |||||||
| Cost of sales | 16,731 | 15,972 | |||||||||
| Gross profit | 3,753 | 3,648 | |||||||||
Operating expenses | 2,945 | 2,844 | |||||||||
| Operating income | $ | 808 | $ | 804 | |||||||
| Interest expense | 160 | 134 | |||||||||
Other expense (income), net | 6 | 7 | |||||||||
| Earnings before income taxes | 642 | 663 | |||||||||
| Income taxes | 152 | 160 | |||||||||
| Net earnings | $ | 490 | $ | 503 | |||||||
| Net earnings: | |||||||||||
| Basic earnings per share | $ | 1.00 | $ | 1.00 | |||||||
| Diluted earnings per share | 0.99 | 0.99 | |||||||||
| Average shares outstanding | 492,023,827 | 505,126,492 | |||||||||
| Diluted shares outstanding | 493,785,973 | 507,069,435 | |||||||||
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Sysco Corporation and its Consolidated Subsidiaries CONSOLIDATED BALANCE SHEETS (In Millions, Except for Share Data) | |||||||||||
| Sep. 28, 2024 | Jun. 29, 2024 | ||||||||||
(Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 733 | $ | 696 | |||||||
| Accounts receivable, less allowances of $65 and $54 | 5,778 | 5,324 | |||||||||
| Inventories | 4,991 | 4,678 | |||||||||
| Prepaid expenses and other current assets | 351 | 323 | |||||||||
| Income tax receivable | 22 | 22 | |||||||||
| Total current assets | 11,875 | 11,043 | |||||||||
| Plant and equipment at cost, less accumulated depreciation | 5,558 | 5,497 | |||||||||
| Other long-term assets | |||||||||||
| Goodwill | 5,253 | 5,153 | |||||||||
| Intangibles, less amortization | 1,169 | 1,188 | |||||||||
| Deferred income taxes | 464 | 445 | |||||||||
| Operating lease right-of-use assets, net | 1,008 | 923 | |||||||||
| Other assets | 553 | 668 | |||||||||
| Total other long-term assets | 8,447 | 8,377 | |||||||||
| Total assets | $ | 25,880 | $ | 24,917 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 6,374 | $ | 6,290 | |||||||
| Accrued expenses | 2,141 | 2,226 | |||||||||
| Accrued income taxes | 271 | 131 | |||||||||
| Current operating lease liabilities | 126 | 125 | |||||||||
| Current maturities of long-term debt | 487 | 469 | |||||||||
| Total current liabilities | 9,399 | 9,241 | |||||||||
| Long-term liabilities | |||||||||||
| Long-term debt | 11,869 | 11,513 | |||||||||
| Deferred income taxes | 333 | 345 | |||||||||
| Long-term operating lease liabilities | 928 | 838 | |||||||||
| Other long-term liabilities | 1,115 | 1,089 | |||||||||
| Total long-term liabilities | 14,245 | 13,785 | |||||||||
| Commitments and contingencies | |||||||||||
| Noncontrolling interest | 29 | 31 | |||||||||
| Shareholders’ equity | |||||||||||
| Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | — | — | |||||||||
| Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765 | 765 | |||||||||
| Paid-in capital | 1,925 | 1,908 | |||||||||
| Retained earnings | 12,498 | 12,260 | |||||||||
| Accumulated other comprehensive loss | (1,166) | (1,339) | |||||||||
| Treasury stock at cost, 274,104,348 and 273,416,685 shares | (11,815) | (11,734) | |||||||||
| Total shareholders’ equity | 2,207 | 1,860 | |||||||||
| Total liabilities and shareholders’ equity | $ | 25,880 | $ | 24,917 | |||||||
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| Sysco Corporation and its Consolidated Subsidiaries CONSOLIDATED CASH FLOWS (Unaudited) (In Millions) | |||||||||||
| Year Ended | |||||||||||
| Sep. 28, 2024 | Sep. 30, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net earnings | $ | 490 | $ | 503 | |||||||
| Adjustments to reconcile net earnings to cash provided by operating activities: | |||||||||||
| Share-based compensation expense | 30 | 24 | |||||||||
| Depreciation and amortization | 235 | 206 | |||||||||
| Operating lease asset amortization | 34 | 29 | |||||||||
| Amortization of debt issuance and other debt-related costs | 4 | 5 | |||||||||
| Deferred income taxes | (17) | (22) | |||||||||
| Provision for losses on receivables | 21 | 18 | |||||||||
| Other non-cash items | (40) | (2) | |||||||||
| Additional changes in certain assets and liabilities, net of effect of businesses acquired: | |||||||||||
| Increase in receivables | (427) | (285) | |||||||||
| Increase in inventories | (287) | (185) | |||||||||
| Increase in prepaid expenses and other current assets | (16) | (39) | |||||||||
| Increase (decrease) in accounts payable | 27 | (188) | |||||||||
| Decrease in accrued expenses | (128) | (40) | |||||||||
| Decrease in operating lease liabilities | (42) | (27) | |||||||||
| Increase in accrued income taxes | 140 | 80 | |||||||||
| Decrease in other assets | 2 | 20 | |||||||||
| Increase (decrease) in other long-term liabilities | 27 | (10) | |||||||||
| Net cash provided by operating activities | 53 | 87 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Additions to plant and equipment | (122) | (171) | |||||||||
| Proceeds from sales of plant and equipment | 77 | 11 | |||||||||
| Acquisition of businesses, net of cash acquired | — | (219) | |||||||||
| Purchase of marketable securities | (12) | (1) | |||||||||
| Proceeds from sales of marketable securities | 10 | — | |||||||||
Other investing activities (1) | 1 | — | |||||||||
| Net cash used for investing activities | (46) | (380) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Bank and commercial paper borrowings, net | 240 | 300 | |||||||||
| Other debt borrowings including senior notes | 3 | 127 | |||||||||
| Other debt repayments including senior notes | (44) | (20) | |||||||||
| Proceeds from stock option exercises | 29 | 17 | |||||||||
| Stock repurchases | (108) | (100) | |||||||||
| Dividends paid | (251) | (253) | |||||||||
Other financing activities (2) | — | (5) | |||||||||
| Net cash (used for) provided by financing activities | (131) | 66 | |||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 13 | (11) | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | (111) | (238) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 945 | 966 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 834 | $ | 728 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid during the period for: | |||||||||||
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| Interest | $ | 144 | $ | 94 | |||||||
| Income taxes, net of refunds | 26 | 103 | |||||||||
(1) | Change primarily includes proceeds from the settlement of corporate-owned life insurance policies. | ||||
(2) | Change includes cash paid for shares withheld to cover taxes, settlement of interest rate hedges and other financing activities. | ||||
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| Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items | ||
| The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. | ||
| The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. | ||
| Management believes that adjusting its operating expenses, operating income, operating margin, net earnings and diluted earnings per share to remove these Certain Items and presenting its results on a constant currency basis provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis. | ||
| Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal year 2025 and fiscal year 2024. | ||
| Set forth on the following page is a reconciliation of sales, operating expenses, operating income, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||
11
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Millions, Except for Share and Per Share Data) | |||||||||||||||||||||||
| 13-Week Period Ended Sep. 28, 2024 | 13-Week Period Ended Sep. 30, 2023 | Change in Dollars | %/bps Change | ||||||||||||||||||||
| Sales (GAAP) | $ | 20,484 | $ | 19,620 | $ | 864 | 4.4 | % | |||||||||||||||
Impact of currency fluctuations (1) | (5) | (5) | — | ||||||||||||||||||||
| Comparable sales using a constant currency basis (Non-GAAP) | $ | 20,479 | $ | 19,620 | $ | 859 | 4.4 | % | |||||||||||||||
| Cost of sales (GAAP) | $ | 16,731 | $ | 15,972 | $ | 759 | 4.8 | % | |||||||||||||||
| Gross profit (GAAP) | $ | 3,753 | $ | 3,648 | $ | 105 | 2.9 | % | |||||||||||||||
Impact of currency fluctuations (1) | (5) | (5) | (0.2) | ||||||||||||||||||||
| Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 3,748 | $ | 3,648 | $ | 100 | 2.7 | % | |||||||||||||||
| Gross margin (GAAP) | 18.32 | % | 18.59 | % | -27 bps | ||||||||||||||||||
Impact of currency fluctuations (1) | (0.02) | -2 bps | |||||||||||||||||||||
| Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 18.30 | % | 18.59 | % | -29 bps | ||||||||||||||||||
| Operating expenses (GAAP) | $ | 2,945 | $ | 2,844 | $ | 101 | 3.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | (27) | (19) | (8) | (42.1) | |||||||||||||||||||
Impact of acquisition-related costs (3) | (38) | (31) | (7) | (22.6) | |||||||||||||||||||
| Operating expenses adjusted for Certain Items (Non-GAAP) | 2,880 | 2,794 | 86 | 3.1 | |||||||||||||||||||
Impact of currency fluctuations (1) | (5) | (5) | (0.2) | ||||||||||||||||||||
| Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 2,875 | $ | 2,794 | $ | 81 | 2.9 | % | |||||||||||||||
| Operating expense as a percentage of sales (GAAP) | 14.38 | % | 14.50 | % | -12 bps | ||||||||||||||||||
| Impact of certain item adjustments | (0.32) | (0.26) | -6 bps | ||||||||||||||||||||
| Adjusted operating expense as a percentage of sales (Non-GAAP) | 14.06 | % | 14.24 | % | -18 bps | ||||||||||||||||||
| Operating income (GAAP) | $ | 808 | $ | 804 | $ | 4 | 0.5 | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | 27 | 19 | 8 | 42.1 | |||||||||||||||||||
Impact of acquisition-related costs (3) | 38 | 31 | 7 | 22.6 | |||||||||||||||||||
| Operating income adjusted for Certain Items (Non-GAAP) | 873 | 854 | 19 | 2.2 | |||||||||||||||||||
Impact of currency fluctuations (1) | — | — | — | ||||||||||||||||||||
| Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 873 | $ | 854 | $ | 19 | 2.2 | % | |||||||||||||||
| Operating margin (GAAP) | 3.94 | % | 4.10 | % | -16 bps | ||||||||||||||||||
| Operating margin adjusted for Certain Items (Non-GAAP) | 4.26 | % | 4.35 | % | -9 bps | ||||||||||||||||||
| Operating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 4.26 | % | 4.35 | % | -9 bps | ||||||||||||||||||
| Net earnings (GAAP) | $ | 490 | $ | 503 | $ | (13) | (2.6) | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | 27 | 19 | 8 | 42.1 | |||||||||||||||||||
Impact of acquisition-related costs (3) | 38 | 31 | 7 | 22.6 | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (4) | (6) | (4) | (2) | (50.0) | |||||||||||||||||||
Tax impact of acquisition-related costs (4) | (9) | (7) | (2) | (28.6) | |||||||||||||||||||
| Net earnings adjusted for Certain Items (Non-GAAP) | $ | 540 | $ | 542 | $ | (2) | (0.4) | % | |||||||||||||||
| Diluted earnings per share (GAAP) | $ | 0.99 | $ | 0.99 | $ | — | — | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | 0.05 | 0.04 | 0.01 | 25.0 | |||||||||||||||||||
12
Impact of acquisition-related costs (3) | 0.08 | 0.06 | 0.02 | 33.3 | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (4) | (0.01) | (0.01) | — | — | |||||||||||||||||||
Tax impact of acquisition-related costs (4) | (0.02) | (0.01) | (0.01) | (100.0) | |||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (5) | $ | 1.09 | $ | 1.07 | $ | 0.02 | 1.9 | % | |||||||||||||||
| Diluted shares outstanding | 493,785,973 | 507,069,435 | |||||||||||||||||||||
(1) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. | ||||
(2) | Fiscal 2025 includes $4 million related to restructuring and severance charges and $23 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy. Fiscal 2024 includes $6 million related to restructuring and severance charges and $13 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(3) | Fiscal 2025 includes $32 million of intangible amortization expense and $6 million in acquisition and due diligence costs. Fiscal 2024 includes $28 million of intangible amortization expense and $3 million in acquisition and due diligence costs. | ||||
(4) | The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(5) | Individual components of diluted earnings per share may not equal the total presented when added due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
| NM | Represents that the percentage change is not meaningful. | ||||
13
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments (Dollars in Millions) | |||||||||||||||||||||||
| 13-Week Period Ended Sep. 28, 2024 | 13-Week Period Ended Sep. 30, 2023 | Change in Dollars | %/bps Change | ||||||||||||||||||||
| U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
| Sales (GAAP) | $ | 14,362 | $ | 13,724 | $ | 638 | 4.6 | % | |||||||||||||||
| Gross profit (GAAP) | 2,747 | 2,685 | 62 | 2.3 | % | ||||||||||||||||||
| Gross margin (GAAP) | 19.13 | % | 19.56 | % | -43 bps | ||||||||||||||||||
| Operating expenses (GAAP) | $ | 1,839 | $ | 1,744 | $ | 95 | 5.4 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | (5) | — | (5) | NM | |||||||||||||||||||
Impact of acquisition-related costs (2) | (12) | (13) | 1 | 7.7 | |||||||||||||||||||
| Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 1,822 | $ | 1,731 | $ | 91 | 5.3 | % | |||||||||||||||
| Operating income (GAAP) | $ | 908 | $ | 941 | $ | (33) | (3.5) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 5 | — | 5 | NM | |||||||||||||||||||
Impact of acquisition-related costs (2) | 12 | 13 | (1) | (7.7) | |||||||||||||||||||
| Operating income adjusted for Certain Items (Non-GAAP) | $ | 925 | $ | 954 | $ | (29) | (3.0) | % | |||||||||||||||
| INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
| Sales (GAAP) | $ | 3,794 | $ | 3,683 | $ | 111 | 3.0 | % | |||||||||||||||
Impact of currency fluctuations (3) | (5) | (5) | (0.1) | ||||||||||||||||||||
| Comparable sales using a constant currency basis (Non-GAAP) | $ | 3,789 | $ | 3,683 | $ | 106 | 2.9 | % | |||||||||||||||
| Gross profit (GAAP) | $ | 774 | $ | 732 | $ | 42 | 5.7 | % | |||||||||||||||
Impact of currency fluctuations (3) | (5) | (5) | (0.6) | ||||||||||||||||||||
| Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 769 | $ | 732 | $ | 37 | 5.1 | % | |||||||||||||||
| Gross margin (GAAP) | 20.40 | % | 19.88 | % | 52 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | (0.10) | -10 bps | |||||||||||||||||||||
| Comparable gross margin using a constant currency basis (Non-GAAP) | 20.30 | % | 19.88 | % | 42 bps | ||||||||||||||||||
| Operating expenses (GAAP) | $ | 673 | $ | 639 | $ | 34 | 5.3 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (12) | (6) | (6) | (100.0) | |||||||||||||||||||
Impact of acquisition-related costs (5) | (17) | (17) | — | — | |||||||||||||||||||
| Operating expenses adjusted for Certain Items (Non-GAAP) | 644 | 616 | 28 | 4.5 | |||||||||||||||||||
Impact of currency fluctuations (3) | (5) | (5) | (0.8) | ||||||||||||||||||||
| Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 639 | $ | 616 | $ | 23 | 3.7 | % | |||||||||||||||
| Operating income (GAAP) | $ | 101 | $ | 93 | $ | 8 | 8.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | 12 | 6 | 6 | 100.0 | |||||||||||||||||||
Impact of acquisition-related costs (5) | 17 | 17 | — | — | |||||||||||||||||||
| Operating income adjusted for Certain Items (Non-GAAP) | 130 | 116 | 14 | 12.1 | |||||||||||||||||||
Impact of currency fluctuations (3) | — | — | — | ||||||||||||||||||||
| Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 130 | $ | 116 | $ | 14 | 12.1 | % | |||||||||||||||
| SYGMA | |||||||||||||||||||||||
| Sales (GAAP) | $ | 2,046 | $ | 1,906 | $ | 140 | 7.3 | % | |||||||||||||||
| Gross profit (GAAP) | 163 | 153 | 10 | 6.5 | % | ||||||||||||||||||
| Gross margin (GAAP) | 7.97 | % | 8.03 | % | -6 bps | ||||||||||||||||||
14
| Operating expenses (GAAP) | $ | 145 | $ | 140 | $ | 5 | 3.6 | % | |||||||||||||||
| Operating income (GAAP) | 18 | 13 | 5 | 38.5 | % | ||||||||||||||||||
| OTHER | |||||||||||||||||||||||
| Sales (GAAP) | $ | 282 | $ | 307 | $ | (25) | (8.1) | % | |||||||||||||||
| Gross profit (GAAP) | 72 | 78 | (6) | (7.7) | % | ||||||||||||||||||
| Gross margin (GAAP) | 25.53 | % | 25.41 | % | 12 bps | ||||||||||||||||||
| Operating expenses (GAAP) | $ | 63 | $ | 66 | $ | (3) | (4.5) | % | |||||||||||||||
| Operating income (GAAP) | 9 | 12 | (3) | (25.0) | % | ||||||||||||||||||
| GLOBAL SUPPORT CENTER | |||||||||||||||||||||||
| Gross loss (GAAP) | $ | (3) | $ | — | $ | (3) | NM | ||||||||||||||||
| Operating expenses (GAAP) | $ | 225 | $ | 255 | $ | (30) | (11.8) | % | |||||||||||||||
Impact of restructuring and transformational project costs (6) | (10) | (13) | 3 | 23.1 | |||||||||||||||||||
Impact of acquisition-related costs (7) | (9) | (1) | (8) | NM | |||||||||||||||||||
| Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 206 | $ | 241 | $ | (35) | (14.5) | % | |||||||||||||||
| Operating loss (GAAP) | $ | (228) | $ | (255) | $ | 27 | 10.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (6) | 10 | 13 | (3) | (23.1) | |||||||||||||||||||
Impact of acquisition-related costs (7) | 9 | 1 | 8 | NM | |||||||||||||||||||
| Operating loss adjusted for Certain Items (Non-GAAP) | $ | (209) | $ | (241) | $ | 32 | 13.3 | % | |||||||||||||||
| TOTAL SYSCO | |||||||||||||||||||||||
| Sales (GAAP) | $ | 20,484 | $ | 19,620 | $ | 864 | 4.4 | % | |||||||||||||||
| Gross profit (GAAP) | 3,753 | 3,648 | 105 | 2.9 | % | ||||||||||||||||||
| Gross margin (GAAP) | 18.32 | % | 18.59 | % | -27 bps | ||||||||||||||||||
| Operating expenses (GAAP) | $ | 2,945 | $ | 2,844 | $ | 101 | 3.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) (4) (6) | (27) | (19) | (8) | (42.1) | |||||||||||||||||||
Impact of acquisition-related costs (2) (5) (7) | (38) | (31) | (7) | (22.6) | |||||||||||||||||||
| Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 2,880 | $ | 2,794 | $ | 86 | 3.1 | % | |||||||||||||||
| Operating income (GAAP) | $ | 808 | $ | 804 | $ | 4 | 0.5 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) (4) (6) | 27 | 19 | 8 | 42.1 | |||||||||||||||||||
Impact of acquisition-related costs (2) (5) (7) | 38 | 31 | 7 | 22.6 | |||||||||||||||||||
| Operating income adjusted for Certain Items (Non-GAAP) | $ | 873 | $ | 854 | $ | 19 | 2.2 | % | |||||||||||||||
(1) | Primarily represents severance and transformation initiative costs. | ||||
(2) | Fiscal 2025 and fiscal 2024 include intangible amortization expense and acquisition costs. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring and transformation costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense. | ||||
(6) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(7) | Represents due diligence costs. | ||||
| NM | Represents that the percentage change is not meaningful. | ||||
15
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Free Cash Flow
(In Millions)
Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sysco considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases and sales of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash including dividend payments, share repurchases and acquisitions. However, free cash flow may not be available for discretionary expenditures, as it may be necessary that we use it to make mandatory debt service or other payments. Free cash flow should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities.
| 13-Week Period Ended Sep. 28, 2024 | 13-Week Period Ended Sep. 30, 2023 | 13-Week Period Change in Dollars | |||||||||||||||
| Net cash provided by operating activities (GAAP) | $ | 53 | $ | 87 | $ | (34) | |||||||||||
| Additions to plant and equipment | (122) | (171) | 49 | ||||||||||||||
| Proceeds from sales of plant and equipment | 77 | 11 | 66 | ||||||||||||||
| Free Cash Flow (Non-GAAP) | $ | 8 | $ | (73) | $ | 81 | |||||||||||
16
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(Dollars in Millions)
EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings.
| 13-Week Period Ended Sep. 28, 2024 | 13-Week Period Ended Sep. 30, 2023 | Change in Dollars | % Change | ||||||||||||||||||||
| Net earnings (GAAP) | $ | 490 | $ | 503 | $ | (13) | (2.6) | % | |||||||||||||||
| Interest (GAAP) | 160 | 134 | 26 | 19.4 | |||||||||||||||||||
| Income taxes (GAAP) | 152 | 160 | (8) | (5.0) | |||||||||||||||||||
| Depreciation and amortization (GAAP) | 235 | 206 | 29 | 14.1 | |||||||||||||||||||
| EBITDA (Non-GAAP) | $ | 1,037 | $ | 1,003 | $ | 34 | 3.4 | % | |||||||||||||||
| Certain Item adjustments: | |||||||||||||||||||||||
Impact of restructuring and transformational project costs (1) | 26 | 19 | 7 | 36.8 | |||||||||||||||||||
Impact of acquisition-related costs (2) | 6 | 2 | 4 | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (3) | $ | 1,069 | $ | 1,024 | $ | 45 | 4.4 | % | |||||||||||||||
Other expense (income), net (4) | 6 | 7 | (1) | (14.3) | |||||||||||||||||||
Depreciation and amortization, as adjusted (Non-GAAP) (5) | (202) | (177) | (25) | (14.1) | |||||||||||||||||||
| Operating income adjusted for Certain Items (Non-GAAP) | $ | 873 | $ | 854 | $ | 19 | 2.2 | % | |||||||||||||||
(1) | Fiscal 2025 and fiscal 2024 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(2) | Fiscal 2025 and fiscal 2024 include acquisition and due diligence costs. | ||||
(3) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $7 million and $12 million or non-cash stock compensation expense of $30 million and $24 million in fiscal 2025 and fiscal 2024, respectively. | ||||
(4) | Fiscal 2025 represents $6 million in GAAP other expense (income), net. Fiscal 2024 represents $7 million in GAAP other expense (income), net. | ||||
(5) | Fiscal 2025 includes $235 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal 2024 includes $206 million in GAAP depreciation and amortization expense, less $29 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. | ||||
| NM | Represents that the percentage change is not meaningful. | ||||
17
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Net Debt to Adjusted EBITDA
(In Millions)
Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. Our Net Debt to Adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of Adjusted EBITDA. In the table that follows, we have provided the calculation of our debt and net debt as a ratio of Adjusted EBITDA.
| Sep. 28, 2024 | ||||||||
| Current Maturities of long-term debt | $ | 487 | ||||||
| Long-term debt | 11,869 | |||||||
| Total Debt | 12,356 | |||||||
| Cash & Cash Equivalents | (733) | |||||||
| Net Debt | $ | 11,623 | ||||||
Adjusted EBITDA for the previous 12 months (1) | $ | 4,236 | ||||||
| Debt/Adjusted EBITDA Ratio | 2.92 | |||||||
| Net Debt/Adjusted EBITDA Ratio | 2.74 | |||||||
Note: | ||||||||
(1) Refer to non-GAAP reconciliation at the end of this release. | ||||||||
18
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months)
(In Millions)
| 13-Week Period Ended Sep. 28, 2024 | 13-Week Period Ended Jun. 29, 2024 | 13-Week Period Ended Mar. 30, 2024 | 13-Week Period Ended Dec. 30, 2023 | Total | |||||||||||||||||||||||||
| Net earnings (GAAP) | $ | 490 | $ | 612 | $ | 425 | $ | 415 | $ | 1,942 | |||||||||||||||||||
| Interest (GAAP) | 160 | 165 | 158 | 150 | 633 | ||||||||||||||||||||||||
| Income taxes (GAAP) | 152 | 192 | 129 | 130 | 603 | ||||||||||||||||||||||||
| Depreciation and amortization (GAAP) | 235 | 226 | 221 | 219 | 901 | ||||||||||||||||||||||||
| EBITDA (Non-GAAP) | $ | 1,037 | $ | 1,195 | $ | 933 | $ | 914 | $ | 4,079 | |||||||||||||||||||
| Certain Item adjustments: | |||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (1) | 26 | 60 | 27 | 11 | 124 | ||||||||||||||||||||||||
Impact of acquisition-related costs (2) | 6 | 8 | 17 | 2 | 33 | ||||||||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (3) | $ | 1,069 | $ | 1,263 | $ | 977 | $ | 927 | $ | 4,236 | |||||||||||||||||||
(1) | Includes charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(2) | Includes acquisition and due diligence costs. | ||||
(3) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $7 million or non-cash stock compensation expense of $30 million in Q1 fiscal 2025, interest income of $10 million or non-cash stock compensation expense of $27 million in Q4 fiscal 2024, interest income of $7 million or non-cash stock compensation expense of $24 million in Q3 fiscal 2024, interest income of $9 million or non-cash stock compensation expense of $29 million in Q2 fiscal 2024. | ||||
19