By Joshua Jamerson
Sysco Corp. said net income rose 33% in the latest period on better-than-expected sales growth, helped by its acquisition of U.K.-based food distributor Brakes Group.
Sysco is one of the largest food and supplies distributors, and serves restaurants, hospitals and schools in the U.S. After its plan to merge with rival US Foods Holding Corp. was foiled by antitrust regulators last year, Sysco turned to acquiring Brakes Group, sharply expanding the U.S. company's overseas footprint. The deal was completed in July.
Indeed, Sysco's international food-service sales nearly doubled to $2.7 billion from $1.4 billion in the prior-year quarter. In the much larger U.S. division, sales edged up 0.8% to $9.5 billion.
In all for the quarter, Sysco earned $323.9 million, or 58 cents a share, up from $244.4 million, or 41 cents a share, a year prior.
Excluding restructuring and merger-related items and the impact of the Brakes acquisition, adjusted earnings rose to 63 cents a share from 52 cents. The company was aided by a lower outstanding share count.
Sales rose 11% to $13.97 billion. Analysts polled by Thomson Reuters had expected $13.88 billion in revenue.
Shares were inactive in premarket trading.
Write to Joshua Jamerson at email@example.com
(END) Dow Jones Newswires
November 07, 2016 08:50 ET (13:50 GMT)
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