Benzinga | Nov 9, 2021 12:35PM EST

Sysco Posts Mixed Q1 Results, Backs FY22 Outlook

* Sysco Corp (NYSE:SYY) reported first-quarter FY22 sales growth of 40% year-on-year and 8% against Q1 FY19, to $16.5 billion, beating the analyst consensus of $15.87 billion.

* The U.S. Foodservice operations sales rose 46.5% Y/Y, and International Foodservice sales grew 33.8%.

* Gross profit increased 33.9% Y/Y to $3.0 billion and the gross margin fell 79 basis points to 18.1%.

* The operating margin improved 28 basis points to 3.8%, and operating income for the quarter rose 50.6% to $631.7 million. Non-GAAP operating margin improved 107 basis points to 4.2%.

* Adjusted EBITDA increased 62.5% Y/Y to $852.8 million in the quarter.

* Adjusted EPS of $0.83 missed the analyst consensus of $0.86.

* Sysco held $2.1 billion in cash and equivalents as of October 2, 2021. Cash provided by operating activities totaled $110.8 million in the quarter.

* Sysco also reiterated its fiscal year 2022 guidance.

* Price Action: SYY shares are trading higher by 0.39% at $80.72 on the last check Tuesday.