HOUSTON, Dec. 07, 2017 (GLOBE NEWSWIRE) — 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.
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.
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.
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