Sysco Q2 2021 Earnings Report
Key Takeaways
Sysco's Q2 2021 results reflect the ongoing challenges posed by the COVID-19 pandemic, with sales decreasing by 23.1% to $11.6 billion and earnings per share decreasing to $0.13. Despite these challenges, the company is focused on its transformation agenda and preparing for a strong rebound as the business recovers.
Sales decreased 23.1% to $11.6 billion.
Gross profit decreased 25.8% to $2.1 billion; gross margin decreased 67 basis points.
Operating income decreased 61.6% to $212.1 million; adjusted operating income decreased 62.7% to $234.1 million.
Earnings per share (“EPS”) decreased $0.61 to $0.13; adjusted EPS decreased $0.68 to $0.17.
Sysco
Sysco
Sysco Revenue by Segment
Forward Guidance
Statements made in this press release or in our earnings call for the second quarter of fiscal 2021 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Positive Outlook
- our expectations regarding our ability to manage the current downturn and capitalize on our position as the industry leader as the global economy recovers
- our expectations regarding future market share gains
- our expectations regarding the effects of our business transformation initiatives, including our belief that our strategic initiatives will enable profitable future growth and drive future value for our associates, shareholders and customers
- our belief that our transformation initiatives will improve how we serve customers, differentiate Sysco from our competitors and deliver strong business results
- our expectations regarding our efforts to regionalize our operations and the benefits to our company from regionalization
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, including the extent and duration of lockdowns in the U.S. and Europe
- 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, including, but not limited to, our growth, product costs, supply chain, labor availability, logistical capabilities, customer demand for our products and industry demand generally, consumer spending, our liquidity, the price of our securities and trading markets with respect thereto, our credit ratings, our ability to maintain compliance with the covenants in our credit agreement, our ability to access capital markets, and the global economy and financial markets generally.
- 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.
- Market conditions may not improve.
- Competition and the impact of GPOs may reduce our margins and make it difficult for us to maintain our market share, growth rate and profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income