Sysco (SYY) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue grew 3.3% to $78.8 billion, with Q4 revenue up 4.2% to $20.6 billion, driven by US Foodservice volume growth and margin management.

• Adjusted EPS was $1.39 for Q4 (up 3.7%) and $4.31 for the year (up 7.5%), exceeding initial guidance.

• Outperformed the market, growing 1.75 times faster than the industry, with strong market share gains in local and specialty businesses.

• International segment delivered 23.6% adjusted operating income growth for FY24 and 13.1% in Q4.

• Over $2.2 billion returned to shareholders via share repurchases and dividends in FY24.

Financial highlights

• Q4 sales were $20.6B (+4.2%); FY24 sales were $78.8B (+3.3%).

• Q4 gross profit grew 4.2% to $3.8B; FY24 gross profit rose 4.7% to $14.6B.

• Q4 adjusted operating income was $1.1B (up 6.4%); FY24 adjusted operating income grew 8.4% to $3.5B.

• Q4 adjusted EBITDA increased 5.4% to $1.3B; FY24 adjusted EBITDA was $4.2B (+9.0%).

• Free cash flow reached a record $2.2B, with cash flow from operations at $3.0B for FY24.

Outlook and guidance

• FY 2025 guidance: net sales growth of 4%-5%, adjusted EPS growth of 6%-7%, with headwinds from global minimum tax and higher interest expense.

• Net sales growth to be driven by inflation, low single-digit volume growth, and M&A contributions.

• Q1 expected to mirror Q4 trends, with improvement anticipated in the back half of FY 2025 as macro conditions improve.

• Plan to hire 450 additional sales professionals in FY 2025, with benefits expected in FY 2026.

• Three-year growth plan targets 4–6% net sales CAGR, 6–8% adjusted EPS CAGR, and 9–11% total shareholder returns.