In a February 8th release, Sysco Corp. (SYY) posted financial results for the 2nd quarter of fiscal 2022. This Company can be regarded as a bellwether as the largest by sales in the distribution segment of the food industry. Along with competitors US Foods and Aramark, all are subject to the risks of currency fluctuation, increased costs for products, labor and transport in a competitive environment still restrained by COVID.
For the 2nd Quarter of FY 2022 ending January 1st 2022, net income was $167 million on total revenue of $16,320 million. Comparable figures for the 2nd quarter of fiscal 2021 ending December 26th 2021 were net income of $67 million on total revenue of $11,599 million. EPS rose from $0.13 for the 2nd quarter of fiscal 2021 to $0.33 for the most recent quarter.
In commenting on results Kevin Hourican, president and CEO stated, “Sysco’s results this quarter were fueled by another quarter of exceptional market share gains, as our relative supply chain strength and Recipe For Growth strategy have enabled us to win in the marketplace. We continue to prioritize both top-line growth and profitability improvement, while efficiently managing elevated inflation. Bottom-line results for the quarter were below our expectations due to higher than anticipated operating expenses, driven by the current COVID environment. The Omicron variant is currently impacting our customers, affecting their top-line and hours of operations. At Sysco, the COVID impact is felt in our operations productivity performance with higher than normal cost to serve. Given current economic conditions, we are managing the macro environment well,”
On January 1st 2022 Sysco posted assets of $21,427 (including $5,322 million in goodwill and intangibles) against long-term debt of $12,418 million. The Company had an intraday market capitalization of $40,620 million on February 8th. SYY trades with a forward P/E of 22.4 and has ranged over a 52-week period from $68.05 to $86.73 with a 50-day moving average of $76.32. Twelve-month trailing operating margin was 3.3 percent and profit margin 1.2 percent. Return on assets over the past twelve months was 5.1 percent and the return on equity 45.1 percent. At 15H30 on February 8th SYY was priced at $80.94 up 1.7 percent from the morning release.