Sysco Q3 2025 – Mixed Financial Results

By Bobby Samwell • Tuesday, April 29 15:22 • Permanent Link

Sysco Corporation (NYSE: SYY) has released its financial results for the third quarter of fiscal year 2025, and the figures reveal some notable changes compared to the same period in fiscal year 2024.

The key financial results for the third quarter of fiscal year 2025 include the following: Sales increased by 1.1% to $19.6 billion Gross profit decreased by 0.8% to $3.6 billion, with a gross margin decrease of 35 basis points to 18.3% Operating income decreased by 5.7% to $681 million Net earnings decreased by 5.6% to $401 million EBITDA decreased by 2.5% to $910 million EPS decreased by 3.5% to $0.82

In terms of the U.S. foodservice operations segment, sales increased by 0.7% to $13.8 billion, while total case volume within U.S. foodservice decreased by 2.0% and local case volume decreased by 3.5%. Gross profit for this segment decreased by 1.9% to $2.6 billion, with a gross margin decrease of 50 basis points to 18.9%.

For the international foodservice operations segment, sales decreased by 1.1% to $3.5 billion. However, on a constant currency basis, sales increased by 2.2% to $3.6 billion. The segment reported a gross profit increase of 1.1% to $728 million and a gross margin increase of 45 basis points to 21.1%.

Looking at the financial comparison between the 13-week and 39-week periods ended March 29, 2025, it's evident that there have been changes in various metrics. For instance, when comparing the 39-week periods, sales increased by 3.3% to $60.2 billion, gross profit increased by 2.0% to $11.0 billion, and net earnings decreased by 3.4% to $1.3 billion.

The company's cash flow from operations decreased by $56 million to $1.3 billion for the first 39 weeks of fiscal year 2025. However, free cash flow increased by $90 million to $954 million for the same period.

In terms of guidance, Sysco now expects sales growth of approximately 3% and adjusted EPS growth of at least 1% for fiscal year 2025.

Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $70.22. For the full picture, make sure to review Sysco's 8-K report.

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