Sysco Details Market Rebound in Fourth Quarter Results; Kevin Hourican and Aaron Alt Discuss
HOUSTON, TX - With pandemic restrictions beginning to ease in some locations across the U.S., market rebounds are starting to take place. Sysco Corporation is a prime example of the impacts of these resurgences as the company has unveiled its 14-week fourth quarter fiscal results and its fiscal year results. Among the highlights of the report is a gross profit increase of 86.2 percent to $2.9 billion, showing a positive trend in the distributor’s growth going forward.
“Sysco’s fourth quarter results were strong, reflecting market share gains and industry demand that has continued to rebound earlier and stronger than expected,” said Kevin Hourican, President and Chief Executive Officer. “While labor and product availability costs are pressuring our industry, we planned ahead to be well-positioned and manage through the demand increase resulting from these transitory pressures. I want to thank all of our Sysco associates for their tireless efforts, in particular those on the frontline who are supporting our customers during one of the most dynamic periods in our history. It is through the collective efforts and commitment of our people that we are advancing our Recipe for Growth strategy and building important new capabilities that position us to better serve our customers and accelerate profitable growth.”
In addition to a skyrocket in it gross profit, other highlights from the fourth quarter 2021, ending July 3, include:
- Fourth quarter sales increased 82.0 percent versus the same period in fiscal year 2020 and increased 4.3 percent versus the same period in fiscal year 2019
- Sales for the U.S. Foodservice Operation for the fourth quarter were $11.5 billion, an increase of 88.4 percent compared to the same period last year
- Gross margin increased 41 basis points to 18.1 percent, as compared to the same period last year
- Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) increased to $778.6 million, and adjusted EBITDA increased to $781.1 million, as compared to the same period last year
“We’re very pleased with our financial results in the fourth quarter, including particularly strong free cash flow performance,” added Aaron Alt, Chief Financial Officer. “Strong sales that surpassed 2019 levels, combined with solid management of inflation and cost, are underpinning our confidence to raise our EPS guidance for fiscal year 2022 [from] $3.33 to $3.53.”
In addition to increases within the fourth quarter, Sysco also noted an EBITDA increase of 46.1 percent to $2.2 billion for the fiscal year 2021. Additionally, EPS increased to $1.02 compared to $0.42 in the prior year.
To read the financial report in its entirety, click here.
As restrictions ease and sectors like foodservice begin to open once again, how will Sysco further expand? AndNowUKnow will bring you the latest.