Wed, Oct 30, 10:02 AM (64 days ago)
In Sysco Corporation's (SYY) Q1 FY2025 report ending September 28, 2024, the company reported a 4.4% increase in revenue to $20,484 million, driven by volume growth and inflation in U.S. Foodservice Operations. Gross profit rose 2.9%, while operating income slightly increased by 0.5% to $808 million. Net earnings fell 2.6% to $490 million, with diluted earnings per share remaining stable at $0.99. The gross margin decreased by 27 basis points to 18.3%, attributed to customer mix shifts and decreased Sysco brand penetration. Cash flow from operations was $53 million, down from $87 million, reflecting higher working capital needs. The company generated positive free cash flow of $8 million compared to a negative $73 million in the prior year. Sysco's total debt increased to $12.4 billion, primarily due to new commercial paper issuances. Future operations may be impacted by macroeconomic conditions, but Sysco remains optimistic about growth in the foodservice sector, supported by ongoing transformation initiatives.