By Owen Tucker-Smith

Sysco's earnings fell in the second quarter even while sales rose, as dairy and poultry prices drove up the food distributor's expenses.

The Houston company reported net income of $406 million, down from $415.2 million in the year-earlier quarter. On a per share basis, earnings were unchanged at 82 cents a share. On an adjusted basis, earnings were 93 cents a share, up from 89 cents a share during the same quarter a year ago. Analysts surveyed by FactSet expected 92 cents a share.

Sysco posted sales of $20.15 billion, up from $19.29 billion a year ago. Analysts were looking for $20.1 billion. Sales rose in both the U.S. foodservice and international foodservice segments

The company's product costs rose 2.1% from a year ago, driven by hikes in the prices of dairy and poultry. Operating expenses rose 4.4%

Sysco expects sales to rise between 4% and 5% in the 2025 fiscal year, which ends in June. It expects adjusted earnings per share to rise between 6% and 7%. Analysts expect adjusted earnings of $4.56 a share for the year.

Write to Owen Tucker-Smith at owen.tucker-smith@wsj.com

(END) Dow Jones Newswires

January 28, 2025 08:37 ET (13:37 GMT)

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