Sysco Statistics: Sysco Corporation is a distributor of food and other related products primarily concerning food service or the food-away-from-home industry. This Company is engaged in selling, marketing, and distributing food products to restaurants, healthcare & educational facilities, lodging establishments, and other customers who prepare meals away from home. Its products also include equipment and supplies for the food service and hospitality industries. Its segments include U.S. Foodservice, International Foodservice, SYGMA, etc. The U.S. Foodservice segment distributes a line of food products, including custom-cut meats, seafood, specialty produce, specialty imports, and a variety of non-food products. The International Foodservice segment includes operations in the Americas and Europe, distributing a line of food products and a variety of non-food products. SYGMA is the Company’s the United States customized distribution subsidiary. The other segment includes its hotel supply operations.
Sysco was founded in 1969 and became a public corporation in March 1970, when stockholders from 9 different firms exchanged their equity for Sysco common stock. The company has grown from US$115 million in yearly sales to US$52.9 billion in annual sales since its formation, both through internal expansion of existing operations and through acquisitions.
Sysco Mission Statement: To Market and Deliver Great Products to our Customers with Exceptional Service.
(Comparison of results from FY21 – FY20)
- Decreased 3.0%, or US$1.6 billion to US$51.3 billion
- Increased 91.8%, or US$687.7 million to US$1.4 billion
- Adjusted operating income decreased 14.7%, or US$251.8 million to US$1.5 billion
- Increased 143.3%, or US$308.7 million to US$524.2 million
- Adjusted net earnings decreased 28.3%, or US$291.6 million to US$740.4 million
Basic Earnings Per Share:
- Increased 145.2%, or US$0.61 to US$1.03 from the prior year’s figure of US$0.42 per share
Diluted Earnings Per Share:
- Increased 142.9%, or US$0.60 to US$1.02 from the prior year’s figure of US$0.42 per share
- Adjusted diluted earnings per share were US$1.44 in FY21 a US$0.57 decrease from the prior year’s figure of US$2.01 per share
- Increased 46.1%, or US$695.4 million to US$2.2 billion
- Adjusted Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA) decreased 9.1%, or US$216.2 million to US$2.2 billion.
(Comparisons of cash flow from FY21 – FY20)
- Cash flow from operations was US$1.9 billion in FY21 in comparison to US$1.6 billion in FY20
- Net capital expenditures totaled US$411.5 million in FY21 in comparison to US$691.7 million in FY20
- Free cash flow was US$1.5 billion in FY21 in comparison to US$927.0 million in FY20
- There were no acquisitions in FY21, and cash used for the acquisition of businesses was US$142.8 million in FY20
- There were US$826.2 million, in bank and commercial paper repayments, and net payments, in FY21 in comparison to US$616.7 million, in a bank and commercial paper borrowings, and net value in FY20
- Dividends paid out were US$917.6 million in FY21 in comparison to US$856.3 million in FY20
- There were no stock repurchases in FY21, cash paid for treasury stock repurchases was US$844.7 million in FY20.
Sysco Corporation Reporting Segments Revenue in US$ Millions (2020-2021)
Sysco distributes foods and other related items to restaurants, healthcare, educational institutions, lodging establishments, and other food service clients. The company’s primary operations are based in North America and Europe. This company has aggregated certain operating segments into three reportable sections in accordance with accounting standards pertaining to disclosures regarding parts of their enterprise. Financial data from other operating segments that do not match the quantitative disclosure thresholds are referred to as “others.”
- U.S. Foodservice Operations – This segment consists mainly of U.S. Broadline operations, which distributes a complete range of food products, including custom cuts of meat, seafood, specialty produce, specialty imports, and a wide range of non-food items.
- International Foodservice Operations – This segment consists of operations in the Americas (mainly outside of the United States and Europe) that distribute a comprehensive range of food and non-food products. The Americas primarily consists of operations in Canada, the Bahamas, Mexico, Costa Rica, and Panama, as well as operations that distribute to international customers. The United Kingdom (UK), France, Ireland, and Sweden make up the majority of their European operations.
- SYGMA – Customised distribution operations in the United States that serve quick-service chain restaurant customers.
- Others – Primarily hotel supply operations; Guest Worldwide. Cake Corporation was sold by Sysco in Q1 of FY21.
Broadline operating sites distribute a complete line of food products and a wide variety of non-food products to traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers, and other venues where foodservice products are served. Certain chain restaurant customer locations receive a comprehensive array of food products as well as a wide array of non-food products from SYGMA operational sites.
Sysco Corporation Reporting Segments Revenue in US$ Millions (2020-2021)
- 1969: Sysco Corporation was founded in Texas.
- 1970: Sysco goes public on the NYSE.
- 1970: The company grew in its early years by acquiring a number of small food service distribution companies that were carefully selected for their geographic locations.
- 1976: Mid-Central Fish and Frozen Foods Inc. were purchased, allowing the corporation to expand its distribution capabilities across the country.
- 1981: Compton Foods in Kansas City was established to acquire beef, and Sysco begins distributing meat and frozen dinners to supermarkets and other organizations.
- 1981: Lankford Produce, based in West Pocomoke, MD, was purchased and renamed Sysco Eastern Maryland.
- 1984: Expansion: Sysco maintained its acquisition strategy by purchasing 3 PYA Monarch operations.
- 1988: CFS Continental, the third-largest food distributor in the United States, was acquired from Tate & Lyle plc.
- 1990: Sysco has made 43 acquisitions since its establishment.
- 1990: Scrivner Inc., a foodservice distribution company established in Oklahoma City, was purchased. After which, the company was renamed “Sysco Food Service of Oklahoma Inc.”
- 1991: Sysco spins out its chain restaurant distribution system into a new firm, SYGMA.
- 1991: Scrivner Inc. acquires 4 of Scrivner’s northeastern distribution firms.
- 1992: Perloff Brothers Inc. and Tartan Foods were purchased.
- The 1990s: The rate of acquisitions decreased, however in certain new markets, such as Alaska and Canada, acquisitions were still being made.
- 1993: The St Louis division of Clark Foodservice Inc. was acquired, and the company was renamed Sysco Food Service of St. Louis Inc.
- 1993: Ritter Food Corporation of Elizabeth, NJ, was purchased, and the company was renamed Ritter Sysco Food Services Inc.
- 1995: Despite its high turnover, Sysco accounted for less than 10% of the foodservice distribution market.
- 1996: Strano Foodservice of Peterborough, Ontario was acquired giving the company a foothold in the Toronto market.
- 1997: Alaska Fish and Farm Inc. were acquired.
- 2002: Serca Foodservices Inc. was purchased from the Oshawa Group (owned by Sobeys) and renamed “Sysco Canada.”
- 2002: Asian Foods Inc., North America’s largest Asian food wholesaler, was acquired.
- 2008: Sysco debuted a new logo and tagline. The green leaf in the letter ‘y’ represents high-quality food as well as Sysco’s environmental and sustainability commitments.
- 2009: The Geary family sold Pallas-Foods, Ireland’s largest food distributor.
- 2009: Keelings Group Ltd., a North County Dublin-based fruit and vegetable wholesaler, sold its foodservice distribution business to Sysco.
- 2012: Pallas Foods bought Crossgar Foodservice, a chicken and meat supplier in Northern Ireland. The company relaunched in April 2004 after being founded in April 1986 as Crossgar Poultry Ltd.
- 2016: Brakes was purchased from Bain Capital, a private equity firm.
What’s new in 2021:
- In February, Sysco introduced 9 chef-tested menu concepts via its cutting-edge solutions platform, providing foodservice operators with new menu options.
- In May, Sysco announced the acquisition of Greco and Sons, an Italian food distributor.
- In July, Sysco and SAVRpak announced a collaboration to bring patented food preservation technology to independent and local restaurant chains.
- In September, Sysco entered into an agreement to acquire Medina Foodservice.
News in 2020:
- In January, Sysco and Lindora entered into a partnership to leverage their logistics and supply-chain management expertise.
- In September, Sysco announced the launch of Foodie Solutions, a new platform for foodservice businesses.
A News in 2019:
- In January, Sysco announced the acquisition of Waugh Foods.
- In April, Sysco purchased J&M Wholesale Meats and Imperio Foods Inc.
- In August, J. Kings Foodservice Professionals Inc. was acquired by Sysco.
- In November, Sysco purchased Armstrong Produce and Kula Produce, two Hawaiian fresh produce wholesalers and distributors.
News in 2018:
- In January, the company agreed to buy Kent Frozen Foods, a food service distributor based in the United Kingdom.
- In February, the company acquired Doerle Food Services for around US$250 million.
- In February, the company introduced 8 new products to its clients via its Cutting Edge Solutions platform.
- In August, the company debuted its new brand tagline, “At the Heart of Food and Service.”
- In September, Sysco expanded its cutting-edge solutions product innovation platform with additional product offerings.
- In October, Sysco introduced Sysco Earth Plus, a non-food solution for diverse food businesses that’s environmentally friendly.
- In August, the company’s C.T. FreshPoint facility in Farmers Branch was further expanded.
- In June, Sysco signed a 10-year renewable energy agreement with NRG’s subsidiary to create 3 solar garden sites in the Houston and Dallas areas of the United States to cover 10% of Sysco’s electricity demand.
A News in 2017:
- In October, Sysco purchased HFM FoodService, a Hawaii-based broad-line distributor.
- In November, Sysco purchased the remaining 50% stake of Mayca Distribuidores.