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Sysco
🇺🇸 NYSE:SYY
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•
Mar 27, 2021

Sysco Q3 2021 Earnings Report

Reported third quarter fiscal 2021 results, with US recovery accelerating and significant debt reduction underway.

Key Takeaways

Sysco's Q3 2021 results showed improving sales trends as markets reopen, with a 13.7% decrease versus FY20. The company is now serving more independent customers than in 2019 and reduced debt by $1.1 billion. A robust business recovery is now upon us.

Sales trends improving as markets reopen; Q3 decreased 13.7% versus FY20 and decreased 19.3% versus FY2019; April increased 102.1% versus 2020 and decreased 8.8% versus 2019.

We are now serving more independent customers compared to pre-COVID.

Gross profit decreased 17.2% to $2.1 billion; industry-leading gross margin decreased 77 basis points on mix among businesses.

Company reduced debt by $1.1 billion during the quarter.

Total Revenue
$11.8B
Previous year: $13.7B
-13.7%
EPS
$0.22
Previous year: $0.45
-51.1%
Gross Profit
$2.1B
Previous year: $2.6B
-19.2%
Cash and Equivalents
$4.9B
Previous year: $2.24B
+118.5%
Free Cash Flow
$460M
Previous year: $488M
-5.8%
Total Assets
$22B
Previous year: $20.4B
+7.9%

Sysco

Sysco

Sysco Revenue by Segment

Forward Guidance

Sysco's forward-looking statements involve risks and uncertainties, including the impact of COVID-19, economic conditions, competition, and supply chain disruptions.

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.
  • Belief that our strategy and our transformational initiatives will drive future value for our associates, shareholders and customers in the fourth quarter and beyond.
  • Expectations regarding our ability to attract and serve new customers, following the COVID-19 crisis.
  • Belief that consumers are ready to eat at restaurants as soon as COVID-19 restrictions are reduced.
  • Expectations that our work to accelerate growth will return to pre-COVID levels as demand resurges.

Challenges Ahead

  • The effect, impact, potential duration or other implications of the coronavirus (“COVID-19”) pandemic and any expectations we may have with respect thereto, including the extent and duration of lockdowns in the U.S. and Europe
  • The pace of the business recovery
  • Our expectations regarding future market share gains
  • The pace of implementation of our business transformation initiatives
  • Our expectations regarding our ability to win meaningful business in the national account space

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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