Revenue during the quarter grew 12.68 percent to $13,524.17 million from $12,002.79 million in the previous year period. Gross margin for the quarter expanded 89 basis points over the previous year period to 18.74 percent. Total expenses were 96.78 percent of quarterly revenues, down from 96.85 percent for the same period last year. This has led to an improvement of 8 basis points in operating margin to 3.22 percent.

Operating income for the quarter was $435.96 million, compared with $377.62 million in the previous year period.

However, the adjusted operating income for the quarter stood at $500.30 million compared to $437.65 million in the prior year period. At the same time, adjusted operating margin improved 5 basis points in the quarter to 3.70 percent from 3.65 percent in the last year period.

“I am very pleased with our third quarter performance,” said Bill DeLaney, Sysco’s chief executive officer. “We saw solid operating income growth, driven by strong local case growth and effective expense management. We are making continued progress on our strategic multi-year initiatives, which provide a platform for ongoing value creation for our customers, associates and shareholders. Going forward, we remain focused on growing our business in a disciplined, profitable manner and are confident in our ability to achieve our three-year plan financial objectives.”

The company has spent $3,305.15 million cash to meet investing activities during the nine month period as against cash outgo of $382.34 million in the last year period. It has incurred net capital expenditure of $394.68 million on net basis during the nine month period, up 13.33 percent or $46.43 million from year ago period.

The company has spent $706.96 million cash to carry out financing activities during the nine month period as against cash outgo of $5,099.74 million in the last year period.

Cash and cash equivalents stood at $855.13 million as on Apr. 01, 2017, up 39.99 percent or $244.30 million from $610.84 million on Mar. 26, 2016.

Working capital declines
Sysco Corporation has witnessed a decline in the working capital over the last year. It stood at $2,595.75 million as at Apr. 01, 2017, down 8.86 percent or $252.21 million from $2,847.96 million on Mar. 26, 2016. Current ratio was at 1.45 as on Apr. 01, 2017, down from 1.69 on Mar. 26, 2016.

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

Days inventory outstanding has decreased to 12 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 26 for the same period last year.