Q4 2024 Sysco Corp Earnings Call Transcript
Key Points
- Sysco Corp (SYY) delivered $79 billion in top-line revenue for the year, a growth of 3.3% versus fiscal 2023.
- Adjusted earnings per share (EPS) for the quarter were $1.39, and $4.31 for the year, exceeding the midpoint of initial guidance.
- Gross profit rate for the quarter was strong, with GP growing 4.2% year-over-year and GP per case growing 1.3% versus prior year.
- International segment delivered compelling local case growth of 5% for the quarter and a 13.1% profit growth.
- Corporate expenses were down 10% for the quarter on a year-over-year basis due to efficiency improvements.
- Traffic to restaurants was down approximately 3% year-over-year for the quarter, impacting overall market conditions.
- Local case growth in the US was only 0.7% year-over-year, indicating room for improvement.
- Sysco brand penetration rates decreased slightly, with a 51 basis point drop in US Broadline and a 37 basis point drop in US local results.
- Gross margin in the US foodservice business was down, primarily due to customer and product mix.
- The new compensation model for sales colleagues may cause short-term disruption and requires careful monitoring to ensure retention and productivity.
Welcome to Sysco's fourth-quarter fiscal year 2024 conference call. As a reminder, today's call is being recorded. We will begin with opening remarks and introductions. I would like to turn the call over to Kevin Kim, Vice President of Investor Relations. Please go ahead.
Good morning, everyone, and welcome to Sysco's fourth-quarter fiscal year 2024 earnings call. On today's call, we have Kevin Hourican, our Chair of the Board and Chief Executive Officer; and Kenny Cheung our Chief Financial Officer.
Before we begin, please note that statements made during this presentation that state the company's or management's intentions, beliefs, expectations or predictions of future are forward-looking statements within the meaning of the Private Security Litigation Reform Act and actual results could differ in a material manner. Additional information about factors that could cause results to differ from those in the forward-looking statements is contained in the company's SEC filings.
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