Slide 1: Fiscal Q1 2025 Earnings Results
Fiscal Q1 2025 Earnings Results October 29, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made in this presentation that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of manage
Slide 3: Kevin Hourican, Chair of the Board and CEO
KEVIN HOURICAN CHAIR OF THE BOARD AND CHIEF EXECUTIVE OFFICER
Slide 4: Food Supply Chain, Food Sales & Marketing
Food Supply Chain Food S a les & M a rketing 4
Slide 5: Q1: Top- and Bottom-line Growth in a Negative Traffic Environment, Reiterate Fiscal 2025 Guidance
Q1: Top- and Bottom-line Growth in a Negative Traffic Environment, Reiterate Fiscal 2025 Guidance Fiscal Q1 2025 Highlights +4.4% +2.9% +2.2% +1.9% Revenue growth to $20.5 billion Gross profit dollar growth to $3.8 billion Adjusted operating income1 growth to Adjusted EPS1 growth to $1.09 $873 milli
Slide 6: Food Away From Home Continues to Gain Share
Food Away From Home Continues to Gain Share Percentage of Combined Monthly Sales (2001 - 2024) 70% 65% 60% 55% 50% 45% 40% 35% 30% Grocery Stores Food Services and Drinking Places The United States Census Bureau Advance Monthly Sales for Retail and Food Services 6
Slide 7: Market Leader in the Highly Fragmented and Growing Foodservice Distribution Industry
Market Leader in the Highly Fragmented and Growing Foodservice Distribution Industry Total Addressable Market Since 2000 $370 B $353 B $360 B $300 B 17% $268 B $224 B $231 B $197 B $161 B $370B 2000 2005 2010 2015 2020 2021 2022 2023 2024 Source: Technomic U.S. Foodservice Industry Wallchart for Cal
Slide 8: Sysco Continues to Outperform the Restaurant Industry
Sysco Continues to Outperform the Restaurant Industry Q3’FY24 Q4’FY24 Q1’FY25 3.5% 2.9% 2.7% • Sysco continues to grow total case volumes despite negative foot traffic to the restaurant industry • Q1’FY25: USFS total volumes outperformed restaurant traffic by 630 bps • Q4’FY24: USFS total volumes ou
Slide 9: Sysco is the Backbone of the Food Away From Home Industry and Growing Share
Sysco is the Backbone of the Food Away From Home Industry and Growing Share Ireland: #1 Position United States: #1 Position 18.2% 15.4% 17.1% 14.9% $4B FY2024 Total Sysco Sales TAM $360B TAM 2019 2023 2019 2023 Great Britain: #1 Position 12.7% $78.8B 10.1% Canada: #1 Position $26B TAM 25.2% In Annua
Slide 10: Sysco's Recipe For Growth is Creating Multiple Vectors to Drive Long-term, Profitable Growth
Sysco’s Recipe For Growth is DIGITAL Creating Multiple Vectors to Enrich the customer experience through personalized digital tools that reduce friction in the purchase experience and introduce innovation to our customers Drive Long-term, Profitable Growth PRODUCTS AND SOLUTIONS Customer focused mar
Slide 11: Q1 Consolidated Results: Revenue +4.4%, Adj. Operating Income +2.2%, Adj. EPS +1.9%
Q1 Consolidated Results: Revenue +4.4%, Adj. Operating Income +2.2%, Adj. EPS + 1.9% Net Sales Gross Profit Adj. Operating (billions) (billions) Income1 • Top- and bottom-line growth with an improved +4.4% (millions) exit rate in September. YoY $20.5 +2.9% +2.2% • Negative industry traffic trends in
Slide 12: In Summary
In Summary Sales Growth of +4.4% Despite Negative Industry Trends; Traffic Improved Throughout the Quarter Strong Performances from International Segment, National Sales and SYGMA Seeing Improvements in Local Broadline Results; Confident in Actions to Support Local Case Growth Reiterate FY25 Guidanc
Slide 13: Kenny Cheung, EVP and Chief Financial Officer
KENNY CHEUNG EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 14: Q1 2025 Consolidated Results
Q1 2025 Consolidated Results Net Sales Gross Profit Adj. Operating (billions) (billions) Income1 • Top- and bottom-line growth with an improved +4.4% (millions) exit rate in September. YoY $20.5 +2.9% +2.2% • Negative industry traffic trends in Q1, despite YoY YoY sequential improvement $873 $19.6 $
Slide 15: Q1 2025 U.S. Foodservice Results
Q1 2025 U.S. Foodservice Results Net Sales Adj. Operating (billions) Income1 • Revenue growth of 4.6% YoY +4.6% YoY (millions) • USFS volumes increased 2.7% YoY -3.0% YoY $14.4 • Local volumes increased 0.2% YoY $954 $13.7 $925 • Gross profit dollars grew 2.3% to $2.7 billion • Adj. operating income
Slide 16: Q1 2025 International Results
Q1 2025 International Results Net Sales Adj. Operating (billions) Income1 (millions) • Sales increased 3.0% YoY, or 2.9% on a +3.0% constant currency basis YoY +12.1% YoY • Adj. operating income1 increased 12.1% $3.7 $3.8 • Strong profit being generated by expanding $130 Sysco brands, operational im
Slide 17: Q1 2025 SYGMA Results
Q1 2025 SYGMA Results Net Sales Operating Income (billions) (millions) • Sales increased 7.3% YoY +7.3% +38.5% YoY YoY • Operating income grew 38.5% YoY $2.0 $1.9 • Segment back to sales and volume growth $18 after a year of resetting customer base to a more favorable mix • Focused on profit enhance
Slide 18: Strong Balance Sheet, Strong Investment Grade Credit Rating
Strong Balance Sheet, Strong Investment Grade Credit Rating Net Debt to Adj. EBITDA1 • Ended the quarter with a 2.7x net debt leverage ratio, within our target range of 2.5-2.75x 3.75x • Committed to Investment Grade debt rating • Ended the quarter with $11.6 billion in net debt and 2.74x approximat
Slide 19: Strong Cash Generation Drives Shareholder Returns
Strong Cash Generation Drives Shareholder Returns Cumulative Cash Returned to Shareholders $19.2 B $17.2 B $15.0 B $13.5 B $12.0 B $11.1 B $9.4 B $7.6 B $5.9 B $3.3 B $0.7 B FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (Expected) Dividends Shares Repurchased Over $19
Slide 20: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance Sales Growth Adj. EPS Growth1,2 • Reiterating FY 2025 Guidance • Net sales growth includes contributions from inflation, low single-digit volume growth, and a slight benefit from M&A during the year. • Remain on track to return essentially all our free cash flow to sharehol
Slide 21: Compelling Investment Opportunity
Compelling Investment Opportunity 1 Market leader in foodservice with key strategic advantages and significant scale, benefitting from food away from home trends 2 Resilient business model, balanced across end geographies, channels and product mixes 3 Multiple vectors of growth in core volumes and t
Slide 22: Sysco: At the heart of food and service
S/sco At the heart of food and service
Slide 23: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 23
Slide 24: Impact of Certain Items
Impact of Certain Items The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures wi
Slide 25: Non-GAAP Reconciliation: Impact of Certain Items, Q1 FY25 vs. Q1 FY24
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, Q1 FY25 vs. Q1 FY24 (Dollars in Millions, Except for Share and Per Share Data) 13-Week 13-Week Period Ended Period Ended Change Sep. 28, 2024 Sep. 30, 2023 in Dollars %/bps Change Sales (
Slide 26: Non-GAAP Reconciliation: Impact of Certain Items, continued
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, Q1 FY25 vs. Q1 FY24 (Dollars in Millions, Except for Share and Per Share Data) continued Operating margin (GAAP) 3.94% 4.10% -16 bps Operating margin adjusted for Certain Items (Non-GAAP)
Slide 27: Segment Results Non-GAAP Reconciliation
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q1 FY25 vs. Q1 FY24 (Dollars in Millions) 13-Week Period Ended 13-Week Period Ended Change Sep. 28, 2024 Sep. 30, 2023 in Dollars %/bps Change U.S.
Slide 28: Segment Results Non-GAAP Reconciliation, continued
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q1 FY25 vs. Q1 FY24 (Dollars in Millions) continued OTHER Sales (GAAP) $ 282 $ 307 $ (25) -8.1% Gross Profit (GAAP) $ 72 $ 78 $ (6) -7.7% Gross Marg
Slide 29: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain I
Slide 30: Impact of Certain Items on EBITDA (Q1 FY25 vs. Q1 FY24)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Q1 FY25 vs. Q1 FY24) (In Millions) 13-Week 13-Week Period Ended Period Ended Change Sep. 28, 2024 Sep. 30, 2023 in Dollar
Slide 31: Net Debt to Adjusted EBITDA
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Net Debt to Adjusted EBIDTA (In Millions) Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. Our Net Debt to Adjusted EBITDA ratio is calculated u
Slide 32: Impact of Certain Items on EBITDA (Trailing Twelve Months)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months) (In Millions) 13-Week 13-Week 13-Week 13-Week Period Ended Period Ended Period Ended Period Ended
Slide 33: Net Debt to Adjusted EBITDA Leverage Ratio Targets
Net Debt to Adjusted EBITDA Leverage Ratio Targets We expect to achieve our net debt to adjusted EBITDA leverage ratio forecast in fiscal 2025. We cannot predict with certainty when we will achieve these results or whether the calculation of our EBITDA will be on an adjusted basis in future periods
Slide 34: Projected Adjusted EPS Guidance
Projected Adjusted EPS Guidance Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty certain items that would be included in the most directly comparable GAAP measure for the relevant future periods. Due to these uncertainties, we cannot provide a qu