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Sysco 8-K Report, Financial Results (Jan 28, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 28, 2025
Period End
January 28, 2025
Security
SYY
In the record · 2016–202610-K1210-Q328-K147

SYY filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 147 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed January 28, 2025. Cited figures are marked; the original filing is the authoritative source.

Sysco Corporation (NYSE: SYY) furnished an 8-K on January 28, 2025, incorporating by reference its press release announcing results for the second quarter of fiscal year 2025, which ended December 28, 2024.

For the 13 weeks, sales rose 4.5% to $20.2 billiona, gross profit rose 3.9% to $3.7 billion, and operating income rose 1.7% to $712 million. Adjusted operating income rose 5.1% to $783 million, and diluted EPS was $0.82, in line with the prior year, while adjusted diluted EPS rose 4.5% to $0.93. Management reiterated fiscal 2025 guidance of sales growth of 4-5% and adjusted EPS growth of 6-7%.

Segment performance was mixed. International Foodservice Operations was the standout, with operating income up 14.5% to $95 millionb and adjusted operating income up 26.5% to $129 million. U.S. Foodservice operating income declined 0.6% to $834 million, though total case volume grew 1.4% and local case volume decreased 0.9%.

Management said early signs of progress in the local business, including improved new customer win rates and Net Promoter Scores, support expected local volume improvement in the second half of 2025. Cash generation weakened in the first 26 weeks of fiscal 2025. Operating cash flow was $498 millionc, a decrease of $358 million from the prior year, and free cash flow was $331 million, down $196 million.

Sysco returned $803 milliond to shareholders through $300 million of share repurchases and $503 million of dividends. The company increased its planned fiscal 2025 share repurchases to $1.25 billion from $1.0 billion, with dividends expected at $1 billion. Net debt to adjusted EBITDA was 2.76 as of December 28, 2024.

02—Key points

Key Highlights

  1. Sales increased 4.5% to $20.2 billion for the quarter, with U.S. Foodservice total case volume up 1.4%.
  2. Adjusted operating income rose 5.1% to $783 million; GAAP operating income rose 1.7% to $712 million.
  3. Diluted EPS was $0.82, flat year over year; adjusted diluted EPS rose 4.5% to $0.93.
  4. International Foodservice Operations operating income rose 14.5% to $95 million, and adjusted operating income rose 26.5% to $129 million.
  5. Fiscal 2025 guidance reiterated: sales growth of 4-5% and adjusted EPS growth of 6-7%.
  6. Share repurchase plan for fiscal 2025 increased to $1.25 billion from $1.0 billion, with dividends expected at $1 billion.
  7. Operating cash flow fell $358 million to $498 million for the first 26 weeks, and free cash flow fell $196 million to $331 million.

03—Questions

Frequently Asked Questions

  1. How did Sysco perform in the second quarter of fiscal 2025?

    Sales rose 4.5% to $20.2 billion and gross profit rose 3.9% to $3.7 billion. GAAP operating income rose 1.7% to $712 million, and adjusted operating income rose 5.1% to $783 million. Diluted EPS was $0.82, and adjusted diluted EPS was $0.93, up 4.5%.

  2. Is Sysco maintaining its full-year fiscal 2025 guidance?

    Yes. The company reiterated guidance for sales growth of 4-5% and adjusted EPS growth of 6-7%.

  3. Why did U.S. Foodservice results lag the rest of the business?

    U.S. Foodservice operating income decreased 0.6% to $834 million, and adjusted operating income rose only 0.9% to $859 million. Local case volume within U.S. Foodservice decreased 0.9%, although total case volume grew 1.4%. Management cited customer mix shift and investments in the business, partly offset by higher volumes and sale-leaseback gains.

  4. How is Sysco returning capital to shareholders?

    Sysco returned $803 million in the first 26 weeks through $300 million of share repurchases and $503 million of dividends. The fiscal 2025 share repurchase plan was increased to $1.25 billion from $1.0 billion, with dividends expected at $1 billion.

  5. What are the key concerns in the cash flow results?

    Operating cash flow was $498 million for the first 26 weeks, down $358 million from the prior year period, and free cash flow was $331 million, down $196 million. Cash balance at quarter end was $793 million, and net debt to adjusted EBITDA was 2.76.

04—Continue

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