Sysco Corporation SYY reported second-quarter FY24 sales growth of 3.7% year-on-year to $19.288 billion, marginally missing the analyst consensus estimate of $19.318 billion.
U.S. Foodservice volume increased 3.4%; U.S. local volumes grew 2.9%. Gross profit increased 4.9% to $3.5 billion. Operating income increased 9.2% to $700.0 million, and adjusted operating income increased 9.2% to $744.9 million.
Adjusted EBITDA increased 11.6% to $927.5 million in the quarter. Adjusted EPS of $0.89 beat the analyst consensus of $0.88.
The first half cash flow from operations increased by 70.0% to $855.9 million, and free cash flow increased by 140.5% to $527.4 million. As of the end of the quarter, the company had a cash balance of $962.2 million.
“Our balanced efforts to deliver compelling top-and bottom-line growth were driven by sequential improvements in volume growth, including local performance, as well as supply chain productivity and implementation of structural cost-out actions,” said Kevin Hourican, Sysco’s President and Chief Executive Officer.
Outlook: The company reiterated the fiscal year 2024 guidance of mid-single-digit sales growth to approximately $80 billion (street view: $79.46 billion) and 5%-10% adjusted EPS growth to $4.20-$4.40 (street view: $4.32).
Price Action: SYY shares are trading higher by 5.87% at $79.58 on the last check Tuesday.
Photo via Wikimedia Commons
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