Sysco Clocks 41% Sales Growth In Q2; Bottom-Line Lags Consensus

• Sysco Corp (NYSE:SYY) reported second-quarter FY22 sales growth of 41.2% year-on-year, to $16.32 billion, beating the analyst consensus of $16.10 billion.
  • The U.S. Foodservice operations segment sales rose 45.1% Y/Y, and International Foodservice sales grew 42.6%.
  • Gross profit increased 37.8% Y/Y to $2.9 billion and the gross margin fell 44 basis points to 17.7%.
  • The operating margin improved 89 basis points to 2.7%, and operating income for the quarter rose 109.8% to $444.9 million. Non-GAAP operating margin improved 101 basis points to 3%.
  • Adjusted EBITDA increased 62.9% Y/Y to $670.7 million in the quarter.
  • Adjusted EPS of $0.57 missed the analyst consensus of $0.71.
  • Sysco held $1.4 billion in cash and equivalents as of January 1, 2022. Cash provided by operating activities totaled $377 million in the quarter.
  • “Bottom-line results for the quarter were below our expectations due to higher than anticipated operating expenses, driven by the current COVID environment,” said CEO Kevin Hourican.
  • Price Action: SYY shares are trading higher by 0.61% at $80.42 on the last check Tuesday.