Thanks primarily to Americans eating out at restaurants again, U.S. foodservice distributors reported higher earnings in their most recently quarterly reports.
Sysco’s U.S. foodservice sales spiked 46.5 percent to USD 11.6 billion (EUR 10.3 billion) in its fiscal first quarter. The distributor’s gross profit increased 36.6 percent to USD 2.2 billion (EUR 1.9 billion). However, its gross margin plummeted 136 basis points to 18.8 percent due to inflation, the company said in a press release. Product cost inflation was 13.4 percent in Sysco’s U.S. broadline business, with price hikes realized primarily in the meat, poultry, and canned and dry products categories, it said.
“These results reflected sequential top-line improvements and another quarter of net new business wins, continued efficient pass-through of inflation, including an increase in gross profit per case, as well as substantial effort by our merchandising team to improve customer fill-rates despite ongoing supply challenges,” Sysco President and CEO Kevin Hourican said.
US Foods realized similar success, boasting a net sales increase of 24.9 percent to USD 7.9 billion (EUR 7 billion) in its fiscal third quarter. The distributor’s gross profit also increased 27.4 percent, and total case volume grew 18.5 percent.
“While supply chain headwinds persist and are expected to continue into 2022, we’re pleased to see tangible and enduring signs that the industry is recovering, which allows us to refocus our energy and resources on our ‘Great Food. Made Easy.’ strategy,” US Foods Chairman and CEO Pietro Satriano said in a press release. “We are focused on profitably growing market share, smartly optimizing our margins and improving operational efficiencies.”
Performance Food Group also had a solid quarter, with its net sales spiking 47.4 percent to USD 10.4 billion (EUR 9.2 billion) in its fiscal first quarter.
The company’s gross profit also increased 40.1 percent, led by the acquisition of Core-Mark and an increase in gross profit-per-case in foodservice driven by growth in the independent channel, PFG said in a press release.
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