Sysco Reported Mixed Q1 Results; Remains Cautious On Macro-Environment

Sysco Corp (NYSE:SYY) reported first-quarter FY23 sales growth of 16.2% year-on-year to $19.13 billion, beating the consensus of $18.65 billion.
U.S. Foodservice operations sales rose 17.2% Y/Y, and International Foodservice sales grew 13.4%.
Gross profit increased 17.4% Y/Y to $3.5 billion, and the gross margin expanded 18 basis points to 18.2%.
The operating margin remained flat at 3.8%, and operating income for the quarter rose 16.3% to $734.3 million. Non-GAAP operating margin contracted 20 basis points to 4%.
Adjusted EBITDA increased 7.5% Y/Y to $916.9 million in the quarter.
Adjusted EPS of $0.97 missed the analyst consensus of $0.99.
Sysco held $437.7 million in cash and equivalents as of October 1, 2022. Cash provided by operating activities for the quarter totaled $158.6 million.
“We are upbeat about our business, while remaining appropriately cautious about the macro-environment, and are reaffirming our expectations to grow adjusted EPS by 26% – 35%, to $4.09 – $4.39, and to return $1.5 billion to our shareholders during fiscal year 2023,” said CFO Aaron Alt.
Price Action: SYY shares are trading lower by 2.07% at $84.77 on the last check Tuesday.
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