Sysco Q4 Highlights: 4.1% Sales Growth, EPS Beat, Higher Volumes & More

Sysco Corporation SYY reported fourth-quarter FY23 sales growth of 4.1% year-on-year to $19.728 billion, missing the consensus of $19.85 billion.

U.S. Foodservice operations sales rose 2.5% Y/Y, and International Foodservice sales grew 12.2%.

Adjusted EPS was $1.34 (+16.5% Y/Y), beating the consensus of $1.33.

Gross profit increased 7% Y/Y to $3.7 billion, and the gross margin expanded 51 basis points to 18.7%.

Operating margin expanded 87 basis points to 4.9%, and operating income for the quarter rose 26.5% to $969.4 million. Adjusted operating margin expanded 57 basis points to 5.2%.

Adjusted EBITDA increased 14.4% Y/Y to $1.2 billion in the quarter.

Operating cash flow for FY23 totaled $2.87 billion, compared to $1.79 billion a year ago. Free cash flow was $2.1 billion.

Sysco held $966 million in cash and equivalents as of July 1, 2023. 

The company returned ~$370.9 million of capital to shareholders via $122.3 million of share repurchases and $248.6 million of dividends.

"Sysco's strong profitability, size and scale advantages, and balance sheet health position our company for growth to continue into fiscal 2024 and beyond," said Kevin Hourican, Sysco's President and CEO.

Price Action: SYY shares are trading lower by 0.34% at $76.05 on the last check Tuesday.