Dec 28, 2019

Sysco Q2 2020 Earnings Report

Sysco's financial performance in Q2 2020 was driven by improved local case growth in the U.S. Foodservice segment, especially among independent customers. While adjusted EPS aligned with expectations, operating income fell short, prompting a focus on strategic initiatives to bolster long-term performance and customer focus.

Key Takeaways

Sysco reported a 1.8% increase in sales, reaching $15.0 billion, and a 2.0% increase in gross profit to $2.8 billion. Operating income increased by 22.3% to $552.5 million, with EPS increasing to $0.74. However, adjusted operating income and EPS showed more modest increases, and operating income results fell short of expectations.

Sales increased by 1.8% to $15.0 billion.

Gross profit increased by 2.0% to $2.8 billion.

Operating income increased significantly by 22.3% to $552.5 million.

Earnings per share increased to $0.74.

Total Revenue
$15B
Previous year: $14.8B
+1.8%
EPS
$0.85
Previous year: $0.75
+13.3%
US Broadline Case Growth
2%
US Local Case Growth
3.7%
Sysco Brand Sales US Broadline
38.26%
Gross Profit
$2.8B
Previous year: $2.77B
+1.0%
Cash and Equivalents
$525M
Previous year: $745M
-29.6%
Total Assets
$19.4B
Previous year: $18.2B
+6.5%

Sysco

Sysco

Sysco Revenue by Segment

Forward Guidance

The company reaffirms its FY18-FY20 adjusted earnings per share guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income