In a May 10th release, Sysco Corp. (SYY) posted financial results for the third quarter of fiscal 2022. This Company can be regarded as a bellwether as the largest by sales in the distribution segment of the food industry. Along with competitors US Foods and Aramark, all are subject to the risks of currency fluctuation, inflation in costs for products, labor and transport in a competitive environment still restrained by COVID.
For the 3rd Quarter of FY 2022 ending April 2nd 2022, net income was $303 million on revenue of $16,903 million. Comparable figures for the 3rd quarter of fiscal 2021 ending March 27th 2021 were net income of $89 million on revenue of $11,825 million. EPS rose from $0.17 for the 3rd quarter of fiscal 2021 to $0.60 for the most recent quarter.
In commenting on results Kevin Hourican, president and CEO stated, Sysco delivered strong results this quarter, reflecting sequential top-line improvements and accelerating market share gains. Our share gains in the U.S. and International segments continue to accelerate and demonstrate the impact of our Recipe for Growth strategy on our business. Additionally, our teams made significant improvements in operating expenses leverage, with lower snap back costs, encouraging progress in our operations productivity performance and continued re-investments to drive profitable growth,” He added “Our profit performance this quarter exceeded our expectations and demonstrates the progress we are making in advancing our strategy”.
On April 2nd 2022 Sysco posted assets of $22,324 (including $5,747 million in goodwill and intangibles) against long-term debt of $11,310 million. The Company had an intraday market capitalization of $42,440 million on May 11th. SYY trades with a forward P/E of 19.5 and has ranged over a 52-week period from $68.05 to $91.53 with a 50-day moving average of $83.59. Twelve-month trailing operating margin was 3.4 percent and profit margin 1.3 percent. Return on assets over the past twelve months was 5.8 percent and the return on equity was 57.8 percent. At close of trading on May 9th SYY was priced pre-release at $81.09 rising to $86.05 at the close on May 10th.