From its Investor Day in New York, senior leaders from Sysco
Corporation (NYSE:SYY) today presented the Company’s
customer-centric strategic priorities designed to accelerate the
Company’s growth and achieve the newly outlined three-year plan
financial objectives. Sysco’s key strategic priorities are:
enriching the customer experience, delivering operational
excellence, optimizing the business and activating the power of the
Company’s people, all of which will allow Sysco to continue to
create value for customers and shareholders.
“Our insights based, industry-leading products,
services and solutions are driving our core business and provide
the foundation for our strong results over the past three years,”
said Tom Bené, Sysco’s president and chief operating officer.
“Today, we outlined our key strategic priorities, which will enable
us to continue transforming our business, while improving the
customer experience of doing business with Sysco. These strategies
will help us achieve our new target financial objectives, including
$650-$700 million in adjusted operating income growth by the end of
fiscal 2020.”
"Our commitment to disciplined, profitable and
sustainable growth, along with solid expense management, will drive
double-digit earnings-per-share growth, on average, through 2020,"
said Joel Grade, Sysco’s executive vice president and chief
financial officer. "Sysco's strong balance sheet and ability to
generate increasing free cash flow will position us to deliver on
our target FY18-FY20 three-year plan financial objectives and
continue to create value for our shareholders.”
“Our strategic priorities will act as the
roadmap, as our 65,000 dedicated associates across the globe build
upon our industry leading position,” continued Bené. “With our
differentiated, value-added services and products, capabilities and
customer-facing technology, we are confident we can help our
customers be successful and continue working toward our vision of
becoming their most valued and trusted business partner.”
Joining Bené and Grade in
presenting Sysco’s key strategic priorities and FY18-FY20
three-year plan to investors were Bill Goetz, senior vice president
of sales and marketing; Greg Bertrand, senior vice president of
U.S. foodservice operations; Paul Moskowitz, executive vice
president of human resources; Wayne Shurts, executive vice
president and chief technology officer; Brian Todd, senior vice
president of merchandising; and Brian Beach, senior vice president
of Sysco Labs and customer experience.
An archived replay of the webcast for Sysco’s
Investor Day 2017 can be accessed at investors.sysco.com.
About Sysco
Sysco is the global leader in selling, marketing
and distributing food products to restaurants, healthcare and
educational facilities, lodging establishments and other customers
who prepare meals away from home. Its family of products also
includes equipment and supplies for the foodservice and hospitality
industries. With over 65,000 associates, the company operates
approximately 300 distribution facilities worldwide and serves more
than 500,000 customer locations. For fiscal 2017 that ended July 1,
2017, the company generated sales of more than $55 billion.
For more information, visit www.sysco.com or
connect with Sysco on Facebook at www.facebook.com/SyscoCorporation
or Twitter at https://twitter.com/Sysco. For important news
and information regarding Sysco, visit the Investor Relations
section of the company's Internet home page at
http://investors.sysco.com/, which Sysco plans to use as a primary
channel for publishing key information to its investors, some of
which may contain material and previously non-public
information. Investors should also follow us at
www.twitter.com/SyscoStock and download the Sysco IR App, available
on the iTunes App Store and the Google Play Market. In addition,
investors should continue to review our news releases and filings
with the Securities and Exchange Commission. It is possible
that the information we disclose through any of these channels of
distribution could be deemed to be material information.
Forward-Looking Statements
Certain statements made in this press release that look forward
in time or that express management’s beliefs, expectations or hopes
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements reflect the views of management at the time such
statements are made and are subject to a number of risks,
uncertainties, estimates, and assumptions that may cause actual
results to differ materially from current expectations. These
statements include, but are not limited to, statements regarding
Sysco’s targeted financial and operational results for
FY18-FY20. The success of these plans and expectations are
subject to the general risks associated with our business,
including the risks of interruption of supplies due to lack of
long-term contracts, severe weather, crop conditions, work
stoppages, intense competition, technology disruptions, dependence
on large regional and national customers, inflation risks, the
impact of fuel prices, adverse publicity, and labor issues. Risks
and uncertainties also include risks impacting the economy
generally, including the risks that the current general economic
conditions will deteriorate, or consumer confidence in the economy
or consumer spending, particularly on food-away-from-home, may
decline. Market conditions may not improve. If sales from our
locally managed customers do not grow at the same rate as sales
from regional and national customers, our gross margins may
decline. Our ability to meet our long-term strategic objectives
depends largely on the success of our various business initiatives,
including efforts related to revenue management, expense
management, our digital e-commerce strategy and any efforts related
to restructuring or the reduction of administrative costs. There
are various risks related to these efforts, including the risk that
these efforts may not provide the expected benefits in our
anticipated time frame, if at all, and may prove costlier than
expected; the risk that the actual costs of any initiatives may be
greater or less than currently expected; and the risk of adverse
effects to our business, results of operations and liquidity if
past and future undertakings, and the associated changes to our
business, do not prove to be cost effective or do not result in the
cost savings and other benefits at the levels that we anticipate.
Our plans related to and the timing of any initiatives are subject
to change at any time based on management’s subjective evaluation
of our overall business needs. If we are unable to realize the
anticipated benefits from our efforts, we could become cost
disadvantaged in the marketplace, and our competitiveness and our
profitability could decrease. Capital expenditures may vary based
on changes in business plans and other factors, including risks
related to the implementation of various initiatives, the timing
and successful completion of acquisitions, construction schedules
and the possibility that other cash requirements could result in
delays or cancellations of capital spending. Periods of high
inflation, either overall or in certain product categories, can
have a negative impact on us and our customers, as high food costs
can reduce consumer spending in the food-away-from-home market, and
may negatively impact our sales, gross profit, operating income and
earnings, and periods of deflation can be difficult to manage
effectively. Fluctuations in inflation and deflation, as well as
fluctuations in the value of foreign currencies, are beyond our
control and subject to broader market forces. Expanding into
international markets presents unique challenges and risks,
including compliance with local laws, regulations and customs and
the impact of local political and economic conditions, including
the impact of Brexit, and such expansion efforts may not be
successful. Any business that we acquire, including the Brakes
Group, may not perform as expected, and we may not realize the
anticipated benefits of our acquisitions or realizing such benefits
may take longer than expected. Expectations regarding the
financial statement impact of any acquisitions may change based on
management’s subjective evaluation. For a discussion of additional
factors impacting Sysco’s business, see the company’s Annual Report
on Form 10-K for the year ended July 1, 2017, as filed with the
SEC, and the company’s subsequent filings with the SEC. Sysco does
not undertake to update its forward-looking statements, except as
required by applicable law.
For more information
contact:
Neil
Russell
Investor Contact
T 281-584-1308
Camilla ZuckeroMedia ContactT
281-899-1839Zuckero.camilla@corp.sysco.com
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