Sysco Foodservice revenue by segment, financials, customers
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Sysco is one of North America's largest food companies. Its 185 distribution centers serve over 400,000 individuals and businesses. In 2012 fiscal revenue at Sysco surpassed $40 billion, a first for the Houston based company.
Aquisitions United States: 9 businesses with annual sales of over $700 million one of which is Louisiana Foods. 2013 4 completed in just the first month including one in Canada. USA: Appert’s Foodservice, Buchy Foodservice, Central Seafood. Canada: Distagro Foodservice formerly a division of Metro Inc.
Though it's not a significant change it is important to note that, although Sysco managed to increase sales in each of the past two years both times, company net earnings declined year to year. This was also true for ebit (earnings before interest and taxes) and operating income. Sysco buys from private label processors (example of private label suppliers: Conagra, Ralcorp, Treehouse Foods, etc.) Regional Distribution Centers help Sysco lower costs (optimizes supply chain activities for certain products, but warehouses are not overused).
Capital expenditures reached a record $784.501 million in 2012 representing a +23.3% increase over 2011. Exactly 10.0% of total revenue comes from Sysco Canada, up from 9.8% in 2011, 9.5% in 2010. O
n June 30, 2012 cash equivalents were at $688.867 million up 7.7% from June 30, 2011. The fiscal year ends in June. On June 30, 2012 the company had 155 distribution facilities in the United States, 29 in Canada, and 1 in Ireland. The 29 in Canada have a cold storage capacity of 1.266 million square feet (out of 13.109m total) and a dry storage capacity of 1.284 million square feet (out of 12.465m total).
Customers
In 2012 63% of orders were made by restaurants, 10% hospitals and homecare facilities, 5% hotels, 6% schools. The percentages haven't changed much in the past two years.
| fiscal HALF | 2013 | 2012 | % | 2012 |
|---|---|---|---|---|
| sales | ||||
| revenue | 21,883.806 | 20,830.811 | +5.0% | 42,380.939 |
| Broadline | 17,836.733 | 16,979.517 | +5.0% | 34,420,851 |
| SYGMA | 2,832.570 | 2,788.024 | +1.6% | 5,735,673 |
| other | 1,320.462 | 1,147.683 | +15.0% | 2,396,113 |
| (incl) | (105.959) | (84.413) | +25.5% | (171,698) |
| gross profit | 3,921.110 | 3,793.250 | +3.4% | 7,676.577 |
| operating income | 861,433 | 936,338 | -8.0% | 1,890.632 |
| interest exp | (63,110) | (57,798) | +9.2% | |
| income tax | 294.586 | 328,996 | -10.5% | |
| gross margin | 17.9% | 18.2% | -0.3% | |
| net profit | 507,967 | 552,766 | -8.1% | |
| basic per share |
86c | 94c | -8.5% | |
| dividends | 55c | 53c | +3.8% | 1.07 |
| current assets | 6,159,785 | 5,648.050 | +9.0% | |
| cash equivalents | 320.805 | 336.531 | -4.7% | |
| total assets | 12,428.067 | 11,454.027 | +8.5% | |
| avg # shares | 587,760,060 | 589,095,964 | -0.2% | |
| long term debt | 2,809.290 | 2,649.346 | +6.0% | 3,018.338 |
countries
- Canada - Sysco made a big splash here in 2001 when it purchased food distributor Serca from Sobeys for $440 million. Sobeys made the move in an attempt to improve operating margins.
- United States - base of operations is Houston, Texas. Founded in 1969. US sales account for 88% of the total. Competes directly with US Foods ($19.0 billion in sales).
- Ireland - Accounts for about 2% of company sales. Entered the market through acquisitions, first Pallas Foods in 2009 for £175 million pounds, then later Crossgar (Crossgar: 4 facilities, 238 employees, turnover 38m pounds, operates in other areas of Britain).