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Sysco Q2 sales 12.2 billion, increase 0.6%

Staff writer ▼ | February 2, 2016
Sysco Corporation announced financial results for the second quarter ended December 26, 2015. Sales were $12.2 billion, an increase of 0.6% compared to the same period last year.
Sysco
Sysco Corporation   Overall food cost deflation was 1.2
Overall food cost deflation was 1.2% (1.9% in U.S. Broadline), as measured by the estimated change in Sysco's product costs, with deflation in the meat, poultry, dairy and seafood categories partially offset by modest inflation in other categories.

In addition, sales from acquisitions completed within the last 12 months increased sales by 0.4%, and the impact of changes in foreign exchange rates decreased sales by 1.7%. Case volume for the Company’s U.S. Broadline operations grew 3.9% during the quarter.

Local case growth within U.S. Broadline operations grew 3.0%. Gross profit was $2.2 billion, an increase of 3.4% compared to the same period last year. Gross margin increased 50 basis points to 17.75%.

Non-GAAP operating income, net earnings and EPS

Adjusted operating expenses increased $31 million, or 1.8%, compared to the same period last year, due mainly to higher case volume-related expenses and planned business technology investments.

Adjusted operating income was $437 million, an increase of $41 million, or 10.2%, compared to the same period last year. Interest expense was $47 million, an increase of $22 million compared to the same period last year, reflecting the increased debt used primarily to fund the Company’s accelerated share repurchase program.

Adjusted net earnings, which include a $21 million or $0.03 per share tax benefit related to the favorable resolution of certain tax contingencies, were $275 million, an increase of $31 million, or 12.6%, compared to the same period last year.

Adjusted diluted EPS was $0.48, which was 17.1% higher compared to the same period last year.

GAAP operating income, net earnings and EPS

Operating expenses decreased $45 million, or 2.6%, compared to the same period last year, due mainly to a lower merger-related expenses, partially offset by higher case volume-related expenses and planned business technology investments.

Operating income was $433 million, an increase of $117 million, or 37.1%, compared to the same period last year. Interest expense was $47 million, a decrease of $30 million compared to the same period last year. Net earnings were $272 million, an increase of $114 million, or 72.4%, compared to the same period last year.

Diluted EPS was $0.48, which was 77.8% higher compared to the same period last year.


 

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