HOUSTON, TX - Sysco’s ambitious three-year plan has officially come to a close, not only hitting its initial goal of improving annual operating income by $400 million, but vastly exceeding it. From the plan’s launch in 2015 till now, operating income had increased by $665.1 million.
“Overall, I am pleased with our performance in fiscal 2018,” said Tom Bené, President and CEO, “which culminated in the successful delivery of our initial three-year plan, including the achievement of our adjusted operating income growth target. As we head into fiscal 2019, we remain confident in our ability to profitably grow the business and accomplish our objectives.”
Throughout the course of Sysco’s three-year plan, the company more than proved it had been using its investments to generate returns, surpassing its return on invested capital goal of 15.0% to reach 20.2%. The foodservice provider has made a number of investments in recent years, including the acquisitions of Mayca Distribuidores, Kent Frozen Foods, HFM FoodService, Supplies on the Fly, and Doerle Food Services.
As for Sysco’s Fourth Quarter and Fiscal Year 2018 reports, which were released alongside the company’s three-year plan results, the following highlights were noted:
Fourth Quarter Year 2018:
- Sales increased 6.2% to $15.3 billion
- Gross profit increased 5.7% to $2.9 billion; gross margin decreased 9 basis points
- Operating income increased 23.2% to $687.7 million; adjusted operating income increased 15.7% to $771.2 million
- EPS increased $0.28 to $0.85; adjusted EPS increased $0.22 to $0.94
Fiscal 2018:
- Sales increased 6.1% to $58.7 billion
- Gross profit increased 5.0% to $11.1 billion; gross margin decreased 19 basis points
- Operating income increased 13.4% to $2.3 billion; adjusted operating income increased 8.4% to $2.5 billion
- EPS increased $0.62 to $2.70; adjusted EPS increased $0.66 to $3.14
Sysco’s stock was up over 7% in the hours after the results were released, hitting a 7.41% increase as of 1:05 p.m. EST, according to Google Finance. As of the time of writing, Sysco’s market capitalization is at $38.09 billion.
