Sysco Corporation (NYSE: SYY) reported a 19% jump in earnings for the fourth quarter driven by lower interest expense as well as higher other income. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates due to a drop in sales from International Foodservice operations.
Net income climbed by 19% to $535.8 million or $1.03 per share. During the quarter, the company managed expenses well and delivered solid operating income growth. Adjusted earnings increased by 17% to $1.10 per share.
Net sales rose by 1% to $15.47 billion. The top-line growth was benefited from higher total case volume within US Broadline operations despite a decrease in sales from International Foodservice Operations.
Looking ahead, the company continues the progress of its transformative initiatives, which are believed to lift the ease for customers doing business with Sysco. This position Sysco well for the long-term growth and create shareholders value in fiscal 2020 and beyond.
For the fourth quarter, sales from US Foodservice Operations increased by 2.8%. However, sales from International Foodservice Operations declined 0.8% as foreign exchange negatively impacted sales by 0.8%. Sales from Sygma dropped 7.7% while other sales increased by 7.8%.
Local case volume within US Broadline operations increased 1.4%, of which 1.3% was organic, while total case volume within US Broadline operations rose 0.4%, of which 0.3% was organic.
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Cash flow from operations was $2.4 million for fiscal 2019, which was $255.8 million higher compared to the prior-year period. Free cash flow was $1.7 billion, which was $249.9 million higher compared to the prior year.
Capital expenditures, net of proceeds from sales of plant and equipment, totaled $671.5 million, which was $5.8 million higher compared to the prior-year period.