Sysco Reports First Quarter Fiscal 2019 Results
HOUSTON, TX - Foodservice distributor Sysco Corporation announced financial results for its first quarter fiscal 2019. The company reported robust top-line numbers—but also noted the persistently costly effects of increased transportation costs on the company’s finances.
“Our top-line results for the first quarter were solid, particularly in our U.S. Foodservice segment,” said Tom Bené, President and CEO. “We continue to see expense challenges in the warehouse and transportation areas of our supply chain, which we anticipate will persist. We remain focused on the execution of our strategic priorities, which we believe will serve as the roadmap for additional growth and value creation.”
Highlights from the 13-week period ending September 29, 2018 included:
- Sales increased 3.9% to $15.2 billion
- Gross profit increased 3.9% to $2.9 billion; gross margin increased 2 basis points
- Operating income increased 1.4% to $628.1 million; adjusted operating income increased 5.1% to $691.7 million
- EPS increased $0.12 to $0.81; adjusted EPS increased $0.17 to $0.91
- The company noted shipping and transportation challenges contributed to nearly static gross profits, a gross margin decrease of 11 basis points, and increased operating expenses of $10.4 million, up 1.9% over last year.
Despite solid top-line results, Sysco’s failure to hit financial targets sent stocks sliding more that 7% in pre-market trading, according to the Houston Chronicle.
To read more about Sysco's Q1 2019, see the company's earnings release in its entirety here.
Will supply chain issues continue to hamper Sysco and other foodservice providers? AndNowUKnow will continue to report with updates.