Revenue during the quarter grew 10.73 percent to $13,457.27 million from $12,153.63 million in the previous year period. Gross margin for the quarter expanded 137 basis points over the previous year period to 19.11 percent. Total expenses were 96.34 percent of quarterly revenues, down from 96.44 percent for the same period last year. This has led to an improvement of 10 basis points in operating margin to 3.66 percent.

Operating income for the quarter was $492.42 million, compared with $432.58 million in the previous year period.

However, the adjusted operating income for the quarter stood at $557.88 million compared to $436.86 million in the prior year period. At the same time, adjusted operating margin improved 55 basis points in the quarter to 4.15 percent from 3.59 percent in the last year period.

“I am pleased with the quality of our second quarter performance, which was driven by disciplined volume growth and sound margin and expense management,” said Bill DeLaney, Sysco chief executive officer. “We are encouraged by our consistently strong financial results over the past two years and are confident that our ongoing focus on supporting the needs of our customers positions us well for future success.”

The company has spent $3,184.51 million cash to meet investing activities during the first six months as against cash outgo of $167.29 million in the last year period. It has incurred net capital expenditure of $274.05 million on net basis during the first six months, up 15.44 percent or $36.65 million from year ago period.

The company has spent $481.80 million cash to carry out financing activities during the first six months as against cash outgo of $4,795.34 million in the last year period.

Cash and cash equivalents stood at $847.29 million as on Dec. 31, 2016, up 42.26 percent or $251.69 million from $595.60 million on Dec. 26, 2015.

Working capital increases marginally
Sysco Corporation has recorded an increase in the working capital over the last year. It stood at $2,958.92 million as at Dec. 31, 2016, up 1.79 percent or $52.11 million from $2,906.81 million on Dec. 26, 2015. Current ratio was at 1.59 as on Dec. 31, 2016, down from 1.75 on Dec. 26, 2015.

Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 26 days for the last year period. Days sales outstanding were almost stable at 25 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 13 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 25 for the same period last year.