01—Abstract
Summary
Summary of the 10-K filed August 28, 2024. Cited figures are marked; the original filing is the authoritative source.
Sysco Corporation reported record fiscal 2024 results for the 52-week year ended June 29, 2024, with sales of $78.8 billiona, up 3.3% from $76.3 billion in fiscal 2023.
Operating income rose 5.4% to $3.2 billionb and net earnings increased 10.5% to $2.0 billion ($1,955 million). Diluted earnings per share were $3.89, up 12.1% from $3.47. Excluding Certain Items, adjusted diluted earnings per share were $4.31, a $0.30 increase from $4.01, and adjusted operating income rose 8.4% to $3.5 billion.
Growth was driven by volume, including acquisitions, and inflation, with U.S. Foodservice case volume up 3.1% and International local case volume up 5.3%. Cash generation was solid: operating cash flow was $3.0 billionc and free cash flow was $2.2 billion, while Sysco spent $1.2 billion on acquisitions, most notably Edward Don & Company for $965 million in cash consideration. Shareholders received $1.0 billion in dividends ($2.00 per share), and the company repurchased 16,128,932 shares for $1.2 billion.
Total debt rose to $12.0 billiond from $10.4 billion, with approximately 98% at fixed rates, and the company stated it expects to operate within its target of 2.5 to 2.75 times net leverage in fiscal 2025. The filing also outlines the outlook for fiscal 2025: inflation of approximately 2%, low single-digit volume growth, net sales growth of 4% to 5%, capital expenditures near 1% of sales, and an expected effective tax rate of approximately 25%. Risk factors highlighted include exposure to low margins and inflation/deflation, labor shortages and union renegotiations, fuel costs, a 2023 cybersecurity incident, and a Tax Court challenge over foreign tax credits that could require reversing a $131 million benefit.
02—Key points
Key Highlights
- Sales of $78.8 billion, up 3.3%; operating income of $3.2 billion, up 5.4%; net earnings of $1,955 million, up 10.5%
- Diluted EPS of $3.89 (up 12.1% from $3.47); adjusted diluted EPS excluding Certain Items of $4.31 (up from $4.01)
- Operating cash flow of $2,989 million and free cash flow of $2,236 million (non-GAAP) in fiscal 2024
- Acquisitions totaling $1.2 billion, including Edward Don & Company ($965 million cash consideration), BIX Produce, Ready Chef and Jacmar Foodservice Distribution
- Returned capital through $1.0 billion in dividends ($2.00 per share) and $1.2 billion in share repurchases (16,128,932 shares)
- Total debt of $12.0 billion versus $10.4 billion a year earlier; credit ratings Baa1 (Moody's), BBB (S&P) and BBB (Fitch), all stable
- Fiscal 2025 guidance: net sales growth of 4% to 5%, inflation of about 2%, and an effective tax rate of about 25%
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Sysco kept $0.02.
- Revenue$78.84B100.0%
- Cost of revenue−$64.24B81.5%
- Gross profit$14.61B18.5%
- Operating costs−$11.41B14.5%
- Operating income$3.20B4.1%
- Interest, other & tax−$1.25B1.6%
- Net income$1.96B2.5%
Where FY2024 revenue went
$78.84B- Cost of revenue: $64.24B, 81% of revenue
- Operating costs: $11.41B, 14% of revenue
- Net income: $1.96B, 2.5% of revenue
- Interest, other & tax: $1.25B, 1.6% of revenue
Kept 2.5% as net incomeNet income $1.96B · 2.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 28, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $78.84B$76.33B | +3.3% |
| Cost of Revenue | $64.24B$62.37B | +3.0% |
| Gross Profit | $14.61B$13.96B | +4.7% |
| Operating Expenses | $11.41B$10.92B | +4.5% |
| Operating Income | $3.20B$3.04B | +5.4% |
| Net Income | $1.96B$1.77B | +10.5% |
| EPS (Basic) | $3.90$3.49 | +11.7% |
| EPS (Diluted) | $3.89$3.47 | +12.1% |
| Shares Outstanding (Basic) | 501.24M507.36M | −1.2% |
| Shares Outstanding (Diluted) | 503.10M509.72M | −1.3% |
05—Questions
Frequently Asked Questions
How did Sysco perform in fiscal 2024?
Sysco reported sales of $78.8 billion, up 3.3% from fiscal 2023. Operating income rose 5.4% to $3.2 billion, and net earnings increased 10.5% to $1.96 billion. Diluted EPS was $3.89, up from $3.47. Adjusted diluted EPS, which excludes Certain Items, was $4.31.
What drove sales growth?
Sales growth was driven by volume and inflation. U.S. Foodservice case volume increased 3.1%, including a 2.8% contribution to sales, and inflation added $291 million to U.S. sales. International Foodservice sales rose 7.4%, with inflation, favorable foreign currency and higher local case volume as contributors.
How much debt does Sysco carry and how is it managed?
Total debt was $12.0 billion at June 29, 2024, up from $10.4 billion, mainly from new senior notes, commercial paper and new leases. About 98% of debt was at fixed rates. Sysco said it expects to remain within its target net leverage range of 2.5 to 2.75 times in fiscal 2025 and was in compliance with all debt covenants.
What does Sysco expect for fiscal 2025?
Sysco expects net sales growth of 4% to 5%, inflation of approximately 2%, and low single-digit volume growth. It expects capital expenditures of about 1% of sales, interest expense of $650 million, and an effective tax rate of about 25%, reflecting the global minimum tax, geographic mix and higher state tax rates.
06—Continue