Food & Beverage

Sysco boosts earnings against 13.7% sales decline for Q3 2021

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May 4, 2021

Sales for Sysco Corp. in the third quarter fell 13.7% from $13.7 billion in Q3 2020 to $11.8 billion, in Q3 2021, ending March 27, 2021, according to an earnings release.

Net earnings, however, improved from a $3.3 million loss in Q3 2020 to $88.9 million in Q3 2021.

Basic and diluted earnings per share improved from a 1-cent loss in Q3 2020 to 17 cents in Q3 2021. Adjusted EPS was 23 cents compared to 22 cents in last year's comparable quarter.

The $11.8 billion in sales fell short of analyst projections of $12.28 billion, according to Marketwatch.

Shares traded at $82.03 today against a 52-week range of $44.17-$85.15.

"A robust business recovery is now upon us. We are seeing consistently improving demand trends from our customers in the United States and we are ready to execute in international as markets reopen," Kevin Hourican, Sysco's president and chief executive officer, said in the press release. "Sysco has made substantial progress against our transformation agenda, as we simultaneously invest in growth and transform our company to better serve our customers."

U.S. foodservice operations sales for the third quarter fell 12.8% from $9.6 billion in Q3 2020 to $8.4 billion in Q3 2021. Local case volume within U.S. broadline operations decreased 9.7% for the third quarter, of which a decrease of 9.7% was organic, while total case volume within U.S. broadline operations decreased 14.1%, of which a decrease of 14.1% was organic.

International foodservice operations sales declined 31.3% from $2.5 billion in Q3 2020 to $1.7 billion in Q3 2021. On a constant currency basis, sales for the third quarter were $1.6 billion, a decrease of 35.4% compared to the same period last year. Foreign exchange rates increased international foodservice operations sales by 4.1% and total Sysco sales by 0.8% during the quarter.

The international foodservice operations segment delivered an operating loss of $121.5 million, a decrease of $37.7 million compared to the same period last year. Adjusted operating loss was $92.4 million, a decrease of $97.4 million compared to the same period last year. On a constant currency basis, adjusted operating loss was $84.2 million, a decrease of $89.2 million compared to the same period last year. Foreign exchange rates increased international foodservice operations operating loss by $8.2 million and reduced total Sysco operating income by $8.0 million during the quarter.