Nov 3 (Reuters) – Sysco said on Tuesday a cyclosporiasis outbreak worsened already soft restaurant demand in August, as the food distributor reported weaker-than-expected quarterly sales, sending its shares down nearly 8%.
Here are more details:-
• The Houston-based company said traffic at restaurant customers and order volumes softened in August as the outbreak weighed on demand
• Sysco in July halted sale and distribution of Taylor Farms iceberg lettuce from Mexico following the US outbreak
• “The cyclospora headwind that transpired for about six weeks in the middle of the quarter is included in the positive 2.7% volume growth,” CEO Kevin Hourican said on a post-earnings call
• The company said rising fuel costs are impacting supply chains, while elevated freight expenses continue to drive up food input costs
• The company now expects annual sales growth to be at the lower end of its prior outlook range of 6% to 7%
• Sysco’s first-quarter net sales grew 2.8% to $21.74 billion, but missed analysts’ estimates of $22.02 billion, according to data compiled by LSEG
• Adjusted earnings for the quarter were in line with estimates at $1.19 per share
(Reporting by Koyena Das in Bengaluru; Editing by Aby Jose Koilparambil)
