In this file:

 

·         Sysco sales miss expectations but says 'a robust business recovery' is ahead

·         Sysco (SYY) Q3 Earnings Beat Estimates

·         Media Release: Sysco Reports Third Quarter Fiscal 2021 Results

 

 

Sysco sales miss expectations but says 'a robust business recovery' is ahead

 

By Tonya Garcia, MarketWatch

May 4, 2021

 

Foodservice distributor Sysco Corp. reported fiscal third-quarter net income of $88.9 million, or 17 cents per share, after a loss of $3.3 million, or 1 cent per share, last year.

 

Adjusted EPS of 23 cents was up from 22 cents last year and ahead of the FactSet consensus for 20 cents.

 

Sales of $11.82 billion were down from $13.70 billion last year and below the FactSet consensus for $12.28 billion.

 

Sysco says sales trends are improving as markets reopen, with April sales more than doubling, up 102.1%, year-over-year...

 

more

https://www.marketwatch.com/story/sysco-sales-miss-expectations-but-says-a-robust-business-recovery-is-ahead-2021-05-04

 

 

Sysco (SYY) Q3 Earnings Beat Estimates

 

Zacks Equity Research

via Yahoo Finance - May 4, 2021

 

Sysco (SYY) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.

 

This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this food distributor would post earnings of $0.35 per share when it actually produced earnings of $0.17, delivering a surprise of -51.43%.

 

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

 

Sysco, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $11.82 billion for the quarter ended March 2021, missing the Zacks Consensus Estimate by 2.95%. This compares to year-ago revenues of $13.7 billion. The company has topped consensus revenue estimates two times over the last four quarters...

 

What's Next for Sysco? ...

 

more

https://finance.yahoo.com/news/sysco-syy-q3-earnings-beat-131501414.html

 

 

Sysco Reports Third Quarter Fiscal 2021 Results

U.S. Recovery Accelerating; Sysco Now Serving More Independent Customers Than in 2019 While Executing Transformation; Significant Debt Reduction Underway

 

Source: Sysco Corporation

via Globe Newswire - May 04, 2021

 

HOUSTON, May 04, 2021 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE: SYY) today announced financial results for its 13-week third fiscal quarter ended March 27, 2021.

 

    Sales trends improving as markets reopen; Q3 decreased 13.7% versus FY20 and decreased 19.3% versus FY19; 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;

    Operating income increased 291.4% to $235.9 million; adjusted1 operating income decreased 32.0% to $256.2 million;

    Earnings before interest, taxes, depreciation and amortization (“EBITDA”) increased 76.5% to $425.8 million; adjusted1 EBITDA decreased 18.7% to $437.4 million;

    Earnings per share (“EPS”) increased $0.18, to $0.17; adjusted1 EPS decreased $0.23, to $0.22;

    Cash flow from operations was $543.1 million and free cash flow was $459.7 million in the quarter; and

    Company reduced debt by $1.1 billion during the quarter.

 

“A robust business recovery is now upon us. We are seeing consistently improving demand trends from our customers in the United States and we are ready to execute in International as markets reopen,” said Kevin Hourican, Sysco’s president and chief executive officer. “Sysco has made substantial progress against our transformation agenda, as we simultaneously invest in growth and transform our company to better serve our customers.”

 

1 Earnings Per Share (EPS) are shown on a diluted basis unless otherwise specified. Adjusted financial results exclude certain items, which primarily include adjustments to our bad debt reserve specific to aged receivables existing prior to the COVID-19 pandemic, goodwill impairment charges, restructuring costs, transformational project costs and acquisition-related costs. Specific to EPS, this year’s third quarter and first 39 weeks Certain Items include the impact of a loss on the sale of our Spain operations. The first 39 weeks Certain Items include the impact of a loss on the sale of Cake Corporation and the impact of a new U.K. tax law change. Reconciliations of all non-GAAP measures are included at the end of this release.

 

Third Quarter Fiscal 2021 Results

 

Total Sysco

 

Sales for the third quarter were $11.8 billion, a decrease of 13.7% compared to the same period last year. The exit rate for the third quarter was stronger than the overall quarter, as select geographic markets continue to drive the recovery as restrictions ease in the areas in which we operate.

 

Gross profit decreased 17.2% to $2.1 billion, and gross margin decreased 77 basis points to 18.0%, compared in each case to the same period last year. The decline in gross profit for the third quarter was primarily driven by lower volumes due to COVID-19.

 

Operating expenses decreased $617.2 million, or 24.6%, compared to the same period last year, driven by reduced costs from the achievement of cost-out initiatives, as well as a benefit from a reduction in our allowance for doubtful accounts. Adjusted operating expenses decreased $320.8 million, or 14.7%, compared to the same period last year.

 

Operating income was $235.9 million, an increase of $175.6 million, or 291.4%, compared to the same period last year. Adjusted operating income was $256.2 million, a decrease of $120.8 million, or 32.0%, compared to the same period last year.

 

“We are leveraging our balance sheet strength to invest in our business – inventory, fleet, people and technology -- while simultaneously reducing our debt levels to reflect the improving business environment,” said Aaron Alt, Sysco’s chief financial officer.

 

U.S. Foodservice Operations

 

Sales for the third quarter were $8.4 billion, a decrease of 12.8% compared to the same period last year. Local case volume within U.S. Broadline operations decreased 9.7% for the third quarter, of which a decrease of 9.7% was organic, while total case volume within U.S. Broadline operations decreased 14.1%, of which a decrease of 14.1% was organic.

 

Gross profit decreased 13.7% to $1.6 billion, and gross margin decreased 22 basis points to 19.6%, compared in each case to the same period last year. Product cost inflation was 3.5% in U.S. Broadline, as measured by the estimated change in Sysco’s product costs, primarily in the paper and disposables, poultry, and meat categories.

 

Operating expenses decreased $341.9 million, or 23.9%, compared to the same period last year. Adjusted operating expenses decreased $212.9 million, or 16.1%, compared to the same period last year.

 

Operating income was $545.5 million, an increase of $81.3 million, or 17.5%, compared to the same period last year. Adjusted operating income was $525.1 million, a decrease of $47.7 million, or 8.3%, compared to the same period last year.

 

International Foodservice Operations

 

Sales for the third quarter were $1.7 billion, a decrease of 31.3% compared to the same period last year. On a constant currency basis, sales for the third quarter were $1.6 billion, a decrease of 35.4% compared to the same period last year. Foreign exchange rates increased International Foodservice Operations sales by 4.1% and total Sysco sales by 0.8% during the quarter.

 

Gross profit decreased 35.1% to $325.2 million, and gross margin decreased 110 basis points to 18.9%, compared in each case to the same period last year. On a constant currency basis, gross profit decreased 39.2% to $304.5 million. Foreign exchange rates increased International Foodservice Operations gross profit by 4.1% and total Sysco gross profit by 0.8% during the quarter.

 

Operating expenses decreased $138.0 million, or 23.6%, compared to the same period last year. Adjusted operating expenses decreased $78.4 million, or 15.8%, compared to the same period last year. On a constant currency basis, adjusted operating expenses decreased $107.2 million, or 21.6%, compared to the same period last year. Foreign exchange rates increased International Foodservice Operations operating expense by 5.8% and total Sysco operating expense by 1.3% during the quarter.

 

The International Foodservice Operations segment delivered an operating loss of $121.5 million, a decrease of $37.7 million compared to the same period last year. Adjusted operating loss was $92.4 million, a decrease of $97.4 million compared to the same period last year. On a constant currency basis, adjusted operating loss was $84.2 million, a decrease of $89.2 million compared to the same period last year. Foreign exchange rates increased International Foodservice Operations operating loss by $8.2 million and reduced total Sysco operating income by $8.0 million during the quarter.

 

Balance Sheet, Capital Spending and Cash Flow

 

Capital expenditures, net of proceeds from sales of plant and equipment, for the first 39 weeks of fiscal 2021 were $358.8 million lower compared to the prior year period.

 

Cash flow from operations was $1.5 billion for the first 39 weeks of fiscal 2021, which was $401.3 million higher compared to the prior year period. Free cash flow2 for the first 39 weeks of fiscal 2021 was $1.2 billion, which was $760.1 million higher compared to the prior year period. The improvement in cash flow was driven by higher earnings, improved working capital, lower capital spending and lower cash taxes paid during the quarter.

 

2 Free cash flow is a non-GAAP measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations for all non-GAAP measures are included at the end of this release.

 

Conference Call & Webcast

 

Sysco will host a conference call to review the company’s third quarter fiscal 2021 financial results on Tuesday, May 4, 2021, at 10:00 a.m. Eastern. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com.

 

Key Highlights:

 

more, including financial tables

https://www.globenewswire.com/news-release/2021/05/04/2222201/2867/en/Sysco-Reports-Third-Quarter-Fiscal-2021-Results.html