Sysco CEO says company 'delivered another record period of operating income' in Fiscal 2023

Sysco Corporation recently announced its financial outcomes for the 13-week fourth quarter of fiscal year 2023, as well as financial outcomes for the fiscal year which ended July 1.

Sales increased by 4.1% from the same period in fiscal year 2022, United States foodservice volume increased by 2.3%, and gross profit increased by 7% to $3.7 billion, according to an Aug. 1 press release.

“Sysco delivered another quarter of solid sales, volume, and market share gains,” said Kevin Hourican, Sysco president and CEO. “Our actions to improve efficiency continued in the fourth quarter with sequential improvements in supply chain productivity and additional cost outs, delivering meaningful operating expense leverage. We further advanced our competitive advantages as the global leader in food service distribution through advancements with our Recipe for Growth strategy. For the quarter and for the year, the Sysco team delivered another record period of operating income. Sysco’s strong profitability, size and scale advantages, and balance sheet health position our company for growth to continue into fiscal 2024 and beyond.”

Operating income surged 26.5% to $969.4 million while adjusted operating income rose 16.9% to $1 billion, according to the release. The company also returned nearly $371 million of capital to shareholders in the fourth quarter of 2023.

Results for the year were higher with sales increasing by 11.2%, food service volume increasing by 5.2%, and gross profit increasing by 13.3% to $14 billion, the release stated.

“Our strong finish to the year, included record performance in the quarter and full year, further illustrating the resilience of Sysco and reinforces our Recipe for Growth strategy is yielding dividends,” said Kenny Cheung, Sysco’s chief financial officer. “Our solid financial results included top-line and bottom-line growth, record free cash flow for the year, and achievement of our target net debt ratio, which improved to 2.5 times. Improved productivity drove operating expense leverage, resulting in strong bottom-line margin expansion.”

Cheung said the company hopes to perform even better in the future, according to the release.