Sysco Reports 19.6B in Sales for Q1 of 2023; Kevin Hourican and Kenny Cheung Detail
HOUSTON, TX - We recently gained new insights into the latest strategies at play for Sysco. The foodservice distributor has announced financial results for its 13-week first fiscal quarter ended September 30, 2023. Sales were recorded at $19.6 billion, an increase of 2.6 percent compared to the same period last year.
“We advanced our competitive advantages as the global leader in foodservice distribution through our Recipe for Growth strategy,” said Kevin Hourican, President and Chief Executive Officer, in reference to the financial results. “This includes our planned acquisition of Edward Don & Company, one of the largest kitchen equipment and supplies distributors, which will add new capabilities and diversified offerings to our product assortment. Combining DON and Sysco will enable us to better serve our hundreds of thousands of customers with a more complete restaurant and hospitality assortment. Sysco’s strong profitability, size and scale advantages, and balance sheet position us for profitable growth for the remainder of fiscal year 2024 and beyond.”
According to a press release, Sysco grew operating income by 9.1 percent and adjusted operating income by 10.6 percent. Hourican noted that this was fueled by volume growth, excellent margin management, and disciplined productivity improvement.
Other highlights from the report include:
- Gross profit increased 4.6 percent to $3.6 billion
- Adjusted operating income increased 10.6 percent to $854.3 million
- EBITDA increased 10.5 percent to $1 billion, and adjusted EBITDA increased 11.7 percent to $1 billion
“Our record first quarter operating profit of $803.6 million included meaningful gross margin expansion and positive operating leverage,” said Kenny Cheung, Chief Financial Officer. “Looking ahead, we plan to deliver continued productivity gains. Adding to our track record, we rewarded our shareholders by returning approximately $352.9 million of cash during the quarter. Our positive momentum in the first quarter gives us confidence in reiterating our 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.”
For more from the report, click here.
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