Sysco net worth has been steadily climbing, driven by the success of its U.S. foodservice operations. As the company expands, it continues to shape the food distribution market.
At Ando Money, we dive deep into Sysco’s finances, examining the factors behind its growing financial performance and its impact in 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Sysco Corporation |
| Full Name | Sysco Corporation |
| Website | www.sysco.com |
| Industry | Food Distribution |
| Traded as | NYSE: SYY |
| ISIN | US8718291078 |
| Founded | 1969 |
| Founders | Herbert Irving, John F. Baugh, Harry Rosenthal |
| Country/Territory | United States |
| Headquarters | Houston, Texas, United States |
| Chief Executive Officer | Kevin Hourican |
| Number of Employees | 76,000 |
| Market Cap | $37.11 billion |
| Total Assets | $24.9 billion |
| Total Equity | $1.86 billion |
| Revenue | $78.8 billion |
| Net Income | $2.0 billion |
What is the Net Worth/Market Cap of Sysco in 2024?
As of October 2024, Sysco’s market cap stands at $37.11 billion, reflecting the company’s dominant position in the food distribution sector. Sysco ranks as one of the most valuable companies in the world.
Compared to others in the same industry, Sysco is a powerhouse in terms of scale and reach. However, it’s important to note that market cap is different from overall “net worth,” which could also include private assets or liabilities.
Some companies closely related to Sysco include:
- Aramark
- US Foods
- Performance Food Group
- McLane Company
- Gordon Food Service
- Unilever
- Nestlé
- PepsiCo
- Tyson Foods
- Coca-Cola
To see how Sysco compares to the largest companies by valuation, visit our detailed article on the richest companies.
Sysco Financial Performance Overview
Revenue Growth in Recent Years
Sysco’s revenue has seen steady growth, hitting $78.8 billion in 2024, up by 3.3% from the previous year.
This growth is largely fueled by increasing demand in the foodservice sector, particularly in the United States, where Sysco operates as a leader.
The combination of volume growth and strategic pricing contributed significantly to the company’s financial performance this fiscal year.
Not only has Sysco expanded its customer base, but it has also effectively managed inflationary pressures, particularly in core categories like poultry and meat, resulting in improved gross profits.
U.S. Foodservice Operations: Core Driver of Growth
U.S. Foodservice remains Sysco’s most critical segment, contributing the majority of its $78.8 billion revenue.
Sales in this division grew by 4.9%, with total case volume rising by 3.5%.
Although local case volume only increased by 0.7%, Sysco’s effective margin management and reinvestment in its U.S. operations were crucial to maintaining profitability.
U.S. Foodservice sales reached $14.4 billion in the fourth quarter alone, showcasing Sysco’s dominance in the domestic market.
International Foodservice Expansion
While the U.S. is Sysco’s primary market, its international operations contributed notably to overall performance, delivering 7.4% growth to reach $14.6 billion in revenue for 2024.
This segment benefited from both volume increases and favorable foreign exchange impacts.
On a constant currency basis, international sales grew by 5.5%, indicating that Sysco’s global strategy is effective in expanding its reach outside the U.S. borders.
The international division’s profitability was particularly impressive, with a 19.4% rise in operating income.
Profit Margins and Gross Profit Analysis
Sysco’s gross profit increased by 4.7% to $14.6 billion, primarily driven by strategic sourcing initiatives and effective inflation management.
The company’s gross margin improved by 25 basis points, highlighting its ability to maintain profitability despite cost pressures.
Significant contributions came from product categories such as poultry and meat, which saw pricing increases that were successfully passed on to customers.
Sysco’s focus on operational efficiency played a crucial role in boosting margins across all segments.
Operating Income and Expenses
The company reported $3.2 billion in operating income, representing a 5.4% increase from 2023.
Adjusted operating income, which excludes certain non-recurring expenses, was even higher at $3.5 billion, reflecting a robust operational performance.
Operating expenses rose by 4.5%, largely due to inflation and increased business volumes.
However, Sysco’s focus on cost control helped keep these increases manageable. The company’s strategic investments, such as those in its logistics network, also bolstered efficiency and contributed to its bottom line.
EBITDA and Cash Flow: Indicators of Profitability
EBITDA reached $4.0 billion, a 12.7% increase from the previous year, with adjusted EBITDA hitting $4.2 billion.
This growth was driven by both top-line expansion and Sysco’s ability to manage costs effectively.
Free cash flow was strong, standing at $2.2 billion—an increase of 5.6% compared to 2023. This provided Sysco with ample liquidity to invest in capital expenditures and return value to shareholders.
The company’s capital spending in 2024 amounted to $753 million, focusing on expanding its distribution network and enhancing technological capabilities.
Shareholder Returns and Capital Allocation
It returned $2.2 billion to shareholders in fiscal year 2024, split between $1.2 billion in share repurchases and $1.0 billion in dividends.
The company’s balanced approach to capital allocation, focusing on both growth and shareholder returns, underscores its commitment to long-term financial health.
This strong capital return strategy is expected to continue, driven by the company’s robust cash flow generation and conservative debt management.
Financial Outlook and Future Growth Plans
Looking ahead, Sysco aims to maintain its growth trajectory by leveraging its strengths in both the U.S. and international markets.
The company expects compound annual growth rates of 4%-6% in net sales and 6%-8% in adjusted earnings per share over the next three years.
Sysco’s investments in logistics, technology, and customer acquisition are expected to drive future growth, allowing the company to outperform the market consistently.
Sysco’s long-term strategy is centered around sustaining profitable growth while delivering strong shareholder returns.
FAQs About Sysco
How many employees does Sysco have?
It employs approximately 76,000 people worldwide, making it one of the largest employers in the food distribution industry.
Where is Sysco headquartered?
Its headquarters is located in Houston, Texas, where it manages its vast global operations.
What is Sysco’s total revenue in 2024?
The company generated $78.8 billion in total revenue in 2024, marking a 3.3% increase from the previous year.
How does Sysco manage its profitability?
It focuses on effective margin management, strategic sourcing, and cost controls to maintain profitability across its operations.
What is Sysco’s approach to shareholder returns?
It returned $2.2 billion to shareholders in 2024 through dividends and share repurchases, reflecting its strong financial performance.
Conclusion
Sysco continues to thrive in the food distribution sector, and its financial performance in 2024 shows why it remains a market leader.
For more insights on financial success stories, or to stay updated on companies like Sysco, visit Ando Money and explore our latest content.
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