Executive Summary
Sysco Corporation reported its Q1 2025 results with a revenue of $20.48 billion, reflecting a year-over-year growth of 5.7% despite the challenges posed by increased competition and fluctuating input costs. The net income reached $490 million, an increase of 15.38%, translating to an EPS of $1.00. Management underscored their commitment to optimizing supply chain efficiency while navigating the ongoing inflationary pressures affecting food prices.
The stability in revenue combined with the impressive growth in net income underscores Sysco's resilience and operational effectiveness. Investors should note that management expressed confidence in meeting future expectations, particularly through strategic investments in technology that enhance delivery efficiency and customer engagement.
Key Performance Indicators
Key Insights
**Revenue**: $20.48 billion (YoY +5.7%, QoQ 0.0%)
**Gross Profit**: $3.75 billion (YoY +3.99%, QoQ 0.0%)
**Operating Income**: $808 million (YoY +11.9%, QoQ 0.0%)
**Net Income**: $490 million (YoY +15.38%, QoQ 0.0%)
**EPS**: $1.00 (YoY +17.65%, QoQ 0.0%)
The stabilization of revenues quarter-on-quarter suggests that the expected seasonality in the industry did not impact Sysco negatively. Key management commentary highlighted a focus on operational efficiencies which have driven impro...
Financial Highlights
Revenue: $20.48 billion (YoY +5.7%, QoQ 0.0%)
Gross Profit: $3.75 billion (YoY +3.99%, QoQ 0.0%)
Operating Income: $808 million (YoY +11.9%, QoQ 0.0%)
Net Income: $490 million (YoY +15.38%, QoQ 0.0%)
EPS: $1.00 (YoY +17.65%, QoQ 0.0%)
The stabilization of revenues quarter-on-quarter suggests that the expected seasonality in the industry did not impact Sysco negatively. Key management commentary highlighted a focus on operational efficiencies which have driven improved profit margins even amidst rising operational costs. The operating income margin stands at 3.94%, indicative of effective cost management strategies compared to the previous period.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
20.48B |
5.70% |
0.00% |
| Gross Profit |
3.75B |
3.99% |
0.00% |
| Operating Income |
808.00M |
11.90% |
0.00% |
| Net Income |
490.00M |
15.38% |
0.00% |
| EPS |
1.00 |
17.65% |
0.00% |
Key Financial Ratios
operatingProfitMargin
3.94%
operatingCashFlowPerShare
$0.19
freeCashFlowPerShare
$-0.05
dividendPayoutRatio
51.2%
Management Commentary
Market Conditions: Management noted, "We are effectively managing our supply chain to counteract inflationary pressures while maintaining service quality."
Operational Strategy: Another key insight was, "Investments in technology have allowed us to optimize our delivery routes, reducing costs and improving customer satisfaction."
These comments reinforce Sysco’s proactive stance against competitive pressures and highlight their commitment to maintain market leadership through innovation.
We are effectively managing our supply chain to counteract inflationary pressures while maintaining service quality.
— Management
Investments in technology have allowed us to optimize our delivery routes, reducing costs and improving customer satisfaction.
— Management
Forward Guidance
Management projects continued revenue growth for the upcoming quarter with expectations of reaching approximately $21 billion in revenue for Q2 2025. The company is focusing on expanding its customer base in the hospitality sector while addressing the food service industry's evolving demands. Key factors to monitor include commodity price trends and legislative changes impacting the food distribution sector. Their ongoing technological enhancements are also expected to yield significant operational improvements.