Slide 1: Fiscal Q4 & Full Year 2024 Earnings Results
Fiscal Q4 & Full Year 2024 Earnings Results July 30, 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 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: Fiscal Q4 2024 Highlights
Q4: Adjusted Operating Income Growth +6.4% Fiscal Q4 2024 Highlights +4.2% +4.2% +6.4% +3.7% Revenue growth to $20.6 billion Gross profit dollar growth to $3.8 billion Adjusted operating income1 growth to Adjusted EPS1 growth to $1.39 $1.1 billion +3.5% +5.4% $782 million +8.7% +13.1% Returned to sh
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 is the Backbone of the Food Away From Home Industry
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 9: Actions Being Taken to Drive Local Sales / Volume Growth
Actions Being Taken to Drive Local Sales / Volume Growth Incremental Sales Consultant Total Team Optimize Sales Sales Performance Selling – Driving Consultant Headcount Management Specialty Compensation – CRM tools 9
Slide 10: Sysco's Recipe for Growth Creating Multiple Vectors
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: Q4 Consolidated Results: Revenue +4.2%, Adj. Operating Income +6.4%
Q4 Consolidated Results: Revenue +4.2%, Gross Profit/Case +1.3% and Adj. Operating Income +6.4% Net Sales Gross Profit Adj. Operating (billions) (billions) Income1 • Strong Q4 performance marked by margin +4.2% (billions) management and positive operating leverage YoY $20.6 +4.2% • USFS Volume grew
Slide 12: In Summary
In Summary Grew Market Share More Than 1.75x1 for FY24 Exceeded the Mid-Point of Adjusted EPS Guide for FY24 Committed to Growing Local Sales Globally Continue to Accelerate Growth in Our Specialty Business Through New Acquisitions and Expanded Capabilities Leverage Our Global Footprint to Fuel Our
Slide 13: Kenny Cheung, EVP and CFO
KENNY CHEUNG EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 14: Q4 2024 Consolidated Results
Q4 2024 Consolidated Results Net Sales Gross Profit Adj. Operating (billions) (billions) Income1 • Sales grew 4.2% YoY +4.2% (billions) YoY • Seventh consecutive quarter of positive $20.6 +4.2% operating leverage YoY +6.4% YoY • Gross margin 18.7% was essentially flat $19.7 $3.7 $3.8 $1.1 compared t
Slide 15: Q4 2024 U.S. Foodservice Results
Q4 2024 U.S. Foodservice Results Net Sales Adj. Operating (billions) Income1 • USFS volumes increased 3.5% YoY +4.9% YoY (billions) • Local volumes increased 0.7% YoY +1.1% YoY $14.4 • Gross profit dollars grew 3.1% to $2.8 billion $13.7 $1.1 $1.1 • Adj. operating income1 increased 1.1% YoY, GAAP op
Slide 16: Q4 2024 International Results
Q4 2024 International Results Net Sales Adj. Operating (billions) Income1 (millions) • Sales increased 3.8% YoY, or 4.5% on a +3.8% constant currency basis YoY +13.1% YoY • Local cases grew 5% YoY $3.8 $164 $3.6 • Gross profit increased 8.7% to $787 million; $145 gross margin improved 93 bps to 20.8
Slide 17: Q4 2024 SYGMA Results
Q4 2024 SYGMA Results Net Sales Operating Income (billions) (millions) • Sales increased 2.0% YoY +2.0% +44.4% YoY YoY • Case growth increased 5% sequentially $2.0 $2.0 $26 versus Q3, a reversal of recent trends as we have lapped a large customer exit in the prior year • Signed new and profitable bu
Slide 18: FY 2024 Consolidated Results
FY 2024 Consolidated Results Net Sales Gross Profit Adj. Operating (billions) (billions) Income1 (billions) • Successfully grew topline 3.3% YoY and delivered on growth target by growing our +3.3% YoY +4.7% business more than 1.75x the U.S. market YoY $78.8 +8.4% • Gross profit increased 4.7% YoY to
Slide 19: FY 2024 U.S. Foodservice Results
FY 2024 U.S. Foodservice Results Net Sales Adj. Operating (billions) Income1 (billions) • USFS volumes increased 3.1% YoY +3.1% YoY • Local volumes increased 1.1% YoY $55.3 +3.2% YoY • Gross profit increased 3.4% to $10.7 billion; $53.7 $3.7 gross margin improved 5 bps to $19.4% $3.6 • Adj. operatin
Slide 20: FY 2024 International Results
FY 2024 International Results Net Sales Adj. Operating (billions) Income1 (millions) • Sales increased 7.4% YoY, or 5.5% on a constant currency basis +7.4% YoY +23.6% YoY • Gross profit increased 11.6% to $2.9 billion; $14.6 $492 gross margin improved 76 bps to 20.2% $13.6 • Adj. operating income1 i
Slide 21: FY 2024 SYGMA Results
FY 2024 SYGMA Results Net Sales Operating Income (billions) (millions) • Sales declined 1.0% YoY -1.0% • Gross profit declined 2.2% to $617 million; YoY +28.6% YoY gross margin declined 11 bps to 7.9% $7.8 $7.8 • Operating income improved 28.6% to $72 $72 million $56 • Positive momentum in SYGMA wit
Slide 22: Strong Balance Sheet, Strong Investment Grade Credit Rating
Strong Balance Sheet, Strong Investment Grade Credit Rating Net Debt to Adj. EBITDA1 • Ended the year with a 2.7x net debt leverage ratio, 3.75x within our target leverage ratio of 2.5-2.75x • Committed to Investment Grade debt rating • Ended the year with $11.3 billion in net debt, with total 2.69x
Slide 23: FY 2024 Cash Flow
FY 2024 Cash Flow Cash from Operations Free Cash Flow1 (millions) (millions) • Returned $2.24 billion to shareholders in FY 2024 between share repurchases and dividends 4.2% 5.6% YoY YoY • Strong conversion rate, with adjusted EBITDA to operating cash flow1 of over 70% and adjusted EBITDA to $2,989
Slide 24: 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 Dividends Shares Repurchased Over $19 Billion of
Slide 25: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance Sales Growth Adj. EPS Growth1,2 • Net sales growth includes contributions from inflation, low single-digit volume growth, and a slight benefit from M&A during the year • Adjusted EPS growth expected to be impacted by non-operational, below- the-line items with a higher tax
Slide 26: 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 27: Sysco: At the heart of food and service
S/sco At the heart of food and service
Slide 28: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 28
Slide 29: 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 30: Non-GAAP Reconciliation: Impact of Certain Items, Q4 FY24 vs. Q4 FY23
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, Q4 FY24 vs. Q4 FY23 (Dollars in Millions, Except for Share and Per Share Data) 13-Week 13-Week Period Ended Period Ended Change June. 29, 2024 Jul. 1, 2023 in Dollars %/bps Change Sales (
Slide 31: Non-GAAP Reconciliation: Impact of Certain Items, Q4 FY24 (continued)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, Q4 FY24 vs. Q4 FY23 (Dollars in Millions, Except for Share and Per Share Data) continued Operating margin (GAAP) 4.75% 4.89% -14 bps Operating margin adjusted for Certain Items (Non-GAAP)
Slide 32: Non-GAAP Reconciliation: Impact of Certain Items, FY24 vs. FY23
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, FY24 vs. FY23 (Dollars in Millions, Except for Share and Per Share Data) 52-Week 52-Week Period Ended Period Ended Change June. 29, 2024 Jul. 1, 2023 in Dollars %/bps Change Sales (GAAP)
Slide 33: Non-GAAP Reconciliation: Impact of Certain Items, FY24 (continued)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, FY24 vs. FY23 (Dollars in Millions, Except for Share and Per Share Data) continued Other expense (GAAP) $ 30 $ 227 $ (197) -86.8% Impact of other non-routine gains and losses (6) - (194)
Slide 34: Segment Results Non-GAAP Reconciliation, Q4 FY24
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q4 FY24 vs. Q4 FY23 (Dollars in Millions) 13-Week 13-Week Period Ended Period Ended Change June. 29, 2024 Jul. 1, 2023 in Dollars %/bps Change U.S.
Slide 35: Segment Results Non-GAAP Reconciliation, Q4 FY24 (continued)
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q4 FY24 vs. Q4 FY23 (Dollars in Millions) continued OTHER Sales (GAAP) $ 310 $ 329 $ (19) -5.8% Gross Profit (GAAP) $ 85 $ 88 $ (3) -3.4% Gross Marg
Slide 36: Segment Results Non-GAAP Reconciliation, FY24
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, FY24 vs. FY23 (Dollars in Millions) 52-Week 52-Week Period Ended Period Ended Change June. 29, 2024 Jul. 1, 2023 in Dollars %/bps Change U.S. FOODSE
Slide 37: Segment Results Non-GAAP Reconciliation, FY24 (continued)
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, FY24 vs. FY23 (Dollars in Millions) continued OTHER Sales (GAAP) $ 1,176 $ 1,239 $ (63) -5.1% Gross Profit (GAAP) 307 326 (19) -5.8% Gross Margin (G
Slide 38: Non-GAAP Reconciliation: Free Cash Flow, YTD24 vs. YTD23
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Free Cash Flow, YTD24 vs. YTD23 (In Millions) Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. S
Slide 39: 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 40: Impact of Certain Items on EBITDA (Q4 FY24 vs. Q4 FY23)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Q4 FY24 vs. Q4 FY23) (In Millions) 13-Week 13-Week Period Ended Period Ended Change June. 29, 2024 Jul. 1, 2023 in Dollar
Slide 41: Impact of Certain Items on EBITDA (FY24 vs. FY23)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (FY24 vs. FY23) (In Millions) 52-Week 52-Week Period Ended Period Ended Change Jun. 30, 2024 Jul. 1, 2023 in Dollars %/bps
Slide 42: Adjusted EBITDA to Free Cash Flow and Operating Cash Flow Conversion
Adjusted EBITDA to Free Cash Flow Conversion and Adjusted EBITDA to Operating Cash Flow Conversion (In Millions) Adjusted EBITDA to Free Cash Flow Conversion and Adjusted EBITDA to Operating Cash Flow Conversion are non-GAAP financial measures frequently used by investors and credit rating agencies.
Slide 43: Non-GAAP Reconciliation: 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 44: 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