Q1 2024 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$65.54Last close (Oct 30, 2023)
Post-Earnings Price$66.18Open (Oct 31, 2023)
Price Change
$0.64(+0.98%)
- Improved gross profit margins with gross profit growing faster than sales due to disciplined pricing, strategic sourcing, and increased Sysco brand penetration, leading to double-digit bottom line growth.
- Investing in expanding specialized sales force, including adding more sales consultants and specialists, to drive future growth in local markets and improve sales effectiveness, expected to have a positive impact starting in 2025.
- Gaining market share by outperforming the industry in volume growth, with international local sales growing 6% in Canada and Europe; strong success in national sales driven by improvements in technology integration and dedicated sales teams, and maintaining high customer retention rates.
- Sysco expects softer volume growth in fiscal 2024 compared to 2023, particularly in the local market, which may impact short-term revenue growth.
- Improvements in local sales, such as adding incremental headcount and enhanced sales compensation, are expected to yield benefits mainly in fiscal 2025, indicating that near-term improvements may be limited.
- Despite progress, Sysco acknowledges they are "not yet back to 2019 productivity levels", signaling ongoing challenges in fully restoring operational efficiency.