Ever wondered about the financial powerhouse behind countless restaurant kitchens, school cafeterias, and healthcare facilities? We're talking about Sysco Corporation (SYY), the global giant in foodservice distribution. If you've ever eaten a meal prepared outside your home, there's a good chance Sysco played a role in getting those ingredients there. But just how much does this behemoth make in a year? Let's dive deep and uncover the impressive financial landscape of Sysco!
Step 1: Getting Started – Your Curiosity is Key!
So, you're curious about Sysco's annual earnings, right? Excellent! That's the first step to understanding the scale of this company. Many people consume food daily without realizing the intricate supply chains that bring it to their plates. Sysco is a prime example of a company that operates largely behind the scenes, yet has a massive impact on the food industry. We'll break down their revenue, what drives it, and how they stack up.
Step 2: Unveiling the Top Line – Sysco's Annual Revenue
When we talk about "how much a company makes," the first figure that comes to mind is revenue. This represents the total amount of money generated from sales of goods and services before any expenses are deducted.
Sysco's Impressive Sales Figures
Sysco's revenue numbers are indeed substantial, reflecting their dominant position in the foodservice industry.
For fiscal year 2024, Sysco reported an annual revenue of $78.844 billion. This represents a solid 3.3% increase from their 2023 figures.
Looking at the twelve months ending March 31, 2025, Sysco's revenue was even higher, reaching approximately $80.789 billion, showing continued growth.
It's clear that Sysco is a multi-billion dollar enterprise, consistently growing its sales year after year.
Historical Revenue Trends
To appreciate the scale, let's look at their recent annual revenue trend:
2024: $78.844 billion
2023: $76.325 billion (an 11.2% increase from 2022)
2022: $68.636 billion (a significant 33.8% increase from 2021, reflecting post-pandemic recovery)
2021: $51.298 billion
2020: $52.893 billion (impacted by the COVID-19 pandemic)
These figures demonstrate a strong rebound and sustained growth following the challenges of the pandemic, which significantly impacted the foodservice industry.
Step 3: Beyond Revenue – Understanding Profitability
While revenue tells us how much money Sysco brings in, it doesn't tell the whole story. To understand how profitable the company is, we need to look at other key financial metrics like gross profit and net income.
Gross Profit: The First Layer of Profitability
Gross profit is the revenue minus the cost of goods sold. It indicates how much profit a company makes from its core operations before accounting for operating expenses, taxes, and interest.
For fiscal year 2024, Sysco's annual gross profit was $14.608 billion, a 4.68% increase from 2023.
For the twelve months ending March 31, 2025, their gross profit was approximately $14.821 billion.
This healthy gross profit shows that Sysco is efficiently managing the direct costs associated with sourcing and distributing food products.
Net Income: The Bottom Line
Net income, often referred to as the "bottom line," is the total profit remaining after all expenses, including taxes and interest, have been deducted from revenue. This is the true measure of how much money the company actually made for its shareholders.
Sysco's annual net income for fiscal year 2024 was $1.955 billion, representing a 10.45% increase from 2023.
In fiscal year 2023, net income was $1.77 billion, a 30.24% increase from 2022.
These net income figures showcase Sysco's ability to not only generate substantial revenue but also translate that into significant profit.
Profit Margins: Efficiency in Action
Profit margins offer a percentage view of profitability, indicating how much profit is generated per dollar of revenue.
Sysco's average net profit margin for fiscal year 2024 was 2.48%. While this might seem like a small percentage, given the massive revenue, it translates into billions of dollars in profit.
For the quarter ending March 31, 2025, the net profit margin was 2.36%.
In a high-volume, relatively low-margin business like foodservice distribution, even a few percentage points of net profit margin represent immense financial success.
Step 4: What Drives Sysco's Earnings?
Sysco's impressive financial performance isn't just a matter of sheer size; it's a result of a complex interplay of factors.
The Breadth of Offerings
Sysco distributes a vast array of products, including:
Fresh and Frozen Foods: Meats, seafood, poultry, dairy, produce.
Canned and Dry Goods: Pantry staples, baking ingredients.
Beverages: Juices, sodas, coffee.
Equipment and Supplies: Kitchen equipment, tableware, cleaning supplies.
This comprehensive product catalog makes them a one-stop shop for many foodservice operators, driving large order volumes.
Extensive Customer Base
Sysco serves a diverse customer base, which provides stability and reduces reliance on any single sector:
Restaurants: Independent eateries, national chains.
Healthcare Facilities: Hospitals, nursing homes.
Educational Institutions: Schools, universities.
Lodging Establishments: Hotels, resorts.
Other Foodservice Operations: Sports venues, corporate dining.
This wide reach ensures a consistent demand for their products.
Operational Efficiency and Supply Chain Mastery
Operating at such a large scale requires exceptional logistical capabilities. Sysco's investments in its supply chain, warehousing, and delivery networks are crucial for maintaining efficiency and controlling costs, which directly impacts profitability. They leverage technology and strategic sourcing to optimize their operations.
Strategic Investments and Acquisitions
Sysco often makes strategic investments and acquisitions to expand its market share, diversify its product offerings, and enhance its operational capabilities. These moves can contribute to both revenue growth and improved profitability.
Market Trends
The overall health of the foodservice industry, consumer dining habits, and inflation also play a significant role. Sysco benefits from a robust "food away from home" market and has shown an ability to manage product cost inflation effectively.
Step 5: Looking Ahead – Future Outlook
Sysco continues to focus on growth and efficiency. For fiscal year 2025, they have set targets for net sales growth of 4% to 6% and adjusted EPS growth of 6% to 8%. This indicates their confidence in continued positive financial performance.
They are also investing in areas like customer focus, supply chain enhancements, and market share expansion, particularly within local accounts and international operations.
10 Related FAQ Questions
How to calculate a company's annual revenue?
To calculate a company's annual revenue, you add up all the money earned from sales of its goods or services over a 12-month fiscal period. This information is typically found in the company's annual financial reports (like the 10-K filing).
How to find Sysco's latest annual revenue figures?
You can find Sysco's latest annual revenue figures on their investor relations website, in their annual reports (Form 10-K filed with the SEC), or on financial data websites like Macrotrends or Bullfincher.
How to understand the difference between revenue and net income?
Revenue is the total money a company brings in from sales. Net income is the profit left after all expenses (cost of goods sold, operating expenses, taxes, interest) have been deducted from the revenue.
How to interpret Sysco's growth percentages?
Growth percentages (e.g., 3.3% increase in revenue) indicate how much a financial metric has changed compared to a previous period. A positive percentage signifies growth, while a negative percentage indicates a decline.
How to learn about Sysco's different business segments?
Sysco's financial reports often break down revenue and sometimes profitability by segment (e.g., U.S. Foodservice, International Foodservice Operations, Sygma). This information provides insight into which parts of their business are performing strongest.
How to analyze a company's profitability beyond just revenue?
To analyze profitability, look at gross profit (revenue - cost of goods sold), operating income (gross profit - operating expenses), and net income (total profit after all expenses and taxes). Profit margins (e.g., net profit margin = net income / revenue) are also crucial.
How to determine if Sysco's revenue growth is sustainable?
Sustainable revenue growth often comes from a combination of factors, including market expansion, increased customer volume, effective pricing strategies, and strategic acquisitions. Consistent growth over several years (as seen with Sysco) suggests sustainability.
How to compare Sysco's financial performance to its competitors?
To compare Sysco's performance, look at key metrics like revenue, net income, and profit margins for its direct competitors (e.g., US Foods). Industry benchmarks and market share data can also provide valuable context.
How to find Sysco's quarterly financial results?
Sysco releases quarterly earnings reports, which are available on their investor relations website and financial news platforms. These reports provide a more granular view of their performance throughout the year.
How to access Sysco's official financial reports?
You can access Sysco's official financial reports, including their Annual Reports (10-K) and Quarterly Reports (10-Q), directly from the "Investors" or "Investor Relations" section of their corporate website, or through the U.S. Securities and Exchange Commission (SEC) EDGAR database.
