Sysco Announces Increased Profits and Sales, Complete Acquisition of Mayca Distribuidores of Costa Rica
HOUSTON, TX – Good things are coming in twos for Sysco this week; the foodservice company announced robust first quarter fiscal 2018 results this morning—with solid growth in sales and profits—and the completed acquisition of leading Costa Rican food distributor Mayca Distribuidores.
“We continue to consistently execute our customer-centric strategy in a cohesive and effective manner, as our U.S. Foodservice Operations delivered solid first quarter results, more than offsetting the softer performance of our International Foodservice Businesses,” said Bill DeLaney, Sysco’s CEO, in a company press release. “In doing so, we largely mitigated the unfavorable near-term financial impact of multiple devastating hurricanes in several of our key markets. I am exceedingly proud of our 65,000 associates who collectively supported our customers, communities, and each other throughout the quarter.”
First quarter fiscal results included:
- Sales increased 4.9% to $14.7 billion
- Gross profit increased 3.8% to $2.8 billion; gross margin decreased 20 basis points to 19.07%
- Operating income increased 9.9% to $623 million; adjusted operating income increased 5.6% to $662 million
- Earnings Per Share (EPS) increased $0.11 to $0.69; adjusted EPS increased $0.07 to $0.74
- Operating income was $781 million, an increase of $36 million, or 4.8%, compared to the same period last year
Though the company noted “mixed results across…various businesses” in its international foodservice operations, sales for international foodservice operations rose 6.4% to $2.9 billion. Though operating income and adjusted operating income were down, Sysco noted its excitement about the acquisition of Mayca Distribuidores in a separate press release.
“We are excited to officially welcome our partners from Mayca into the Sysco family of companies,” said Scott Sonnemaker, Sysco’s SVP-International Foodservice Operations, Americas. “Increasing our international presence has been a large part of our strategy in recent years, and the success and growth we have seen in Costa Rica are great examples of our strategy at work.”
Sysco initially entered into partnership with Mayca in 2014 after purchasing 50% of the company. The Costa Rican company has been in business since 1995, and in addition to its distribution business, has a retail cash-and-carry affiliate with twelve locations, and three additional locations under construction, in addition to a cold-storage company and a truck leasing company. In April, Mayca moved into a 170,000 square-foot facility, one of the largest foodservice distribution centers in Central America, designed to represent the best in technology and energy efficiency.
“The closing of this acquisition is a huge benefit to our associates and customers,” said Jose Maroto, Mayca’s CEO and President. “Our customers will continue to benefit from the wide variety of Sysco’s product assortment, eCommerce solutions, services and expertise.”
Following the acquisition, Maroto will continue to serve as CEO and add new responsibilities as Sysco’s VP of Business Development, Central and South America, to assist with executing Sysco’s strategy by growing business in Costa Rica and the surrounding regions. Osael Maroto, Mayca’s Operations Manager, will assume the role of President.
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