- Sysco Corporation (NYSE:SYY) reported third-quarter FY23 sales growth of 11.7% year-on-year to $18.88 billion, beating the consensus of $18.52 billion.
- U.S. Foodservice operations sales rose 10.4% Y/Y, and International Foodservice sales grew 18%.
- Gross profit increased 13.9% Y/Y to $3.4 billion, and the gross margin expanded 35 basis points to 18.2%.
- Operating margin expanded 75 basis points to 3.7%, and operating income for the quarter rose 40% to $694.2 million. Non-GAAP operating margin expanded 50 basis points to 3.9%.
- Adjusted EBITDA increased 19% Y/Y to $899.7 million in the quarter.
- Adjusted EPS of $0.90 missed the analyst consensus of $0.92.
- Sysco held $854.5 million in cash and equivalents as of April 1, 2023. Cash flow from operations was $1.4 billion for the first 39 weeks of fiscal 2023.
- “We delivered strong sales growth throughout the quarter, despite some industry softness beginning in March,” said Kevin Hourican, Sysco’s President and CEO.
- Price Action: SYY shares are trading lower by 3.48% at $74.14 on the last check Tuesday.
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