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Sep 26, 2020
Sysco Q1 2021 Earnings Report
Sysco's Q1 2021 results were impacted by the pandemic, but the company managed expenses effectively and generated positive free cash flow.
Key Takeaways
Sysco reported a decrease in sales by 23.0% to $11.8 billion due to the impact of the global pandemic, but the company was able to deliver $420M of operating income and positive free cash flow. The company is focused on business transformation to accelerate profitable growth.
Sales decreased 23.0% to $11.8 billion.
Gross profit decreased 24.6% to $2.2 billion; gross margin decreased 39 basis points.
Operating income decreased 37.2% to $419.6 million; adjusted operating income decreased 50.8% to $364.7 million.
Earnings per share decreased $0.45 to $0.42; adjusted EPS decreased $0.64 to $0.34.
Sysco
Sysco
Sysco Revenue by Segment
Revenue by Segment
U.S. Foodservice Revenue
CapyFin.comInternational Foodservice Revenue
CapyFin.comSYGMA Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Sysco's forward-looking statements involve risks and uncertainties, including the impact of COVID-19 and economic conditions.
Positive Outlook
- Expectations regarding our ability to manage the current downturn and capitalize on our position as the industry leader as the global economy recovers.
- Expectations regarding future market share gains.
- Belief that our transformation initiatives will improve how we serve customers.
- Expectations that our efforts across our customer-facing tools and technology will improve service to our customers.
- Plans to remove structural expense from our company’s operations and the amount of structural savings we expect to deliver.
Challenges Ahead
- The effect, impact, potential duration or other implications of the recent outbreak of a novel strain of coronavirus (“COVID-19”) and any expectations we may have with respect thereto.
- The impact on our results of government-imposed restrictions on restaurant operations.
- Risks of interruption of supplies due to lack of long-term contracts, severe weather, crop conditions, work stoppages, intense competition, technology disruptions.
- Risks and uncertainties also include the impact and effects of public health crises, pandemics and epidemics, such as the COVID-19 pandemic, and the adverse impact thereof on our business, financial condition and results of operations
- Risks and uncertainties also include risks impacting the economy generally, including the risks that the current general economic conditions will deteriorate, or consumer confidence in the economy or consumer spending, particularly on food-away-from-home, may decline.
Revenue & Expenses
Visualization of income flow from segment revenue to net income