Company: SYY
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0000096021-25-000010
Chunk: 71

Company: SYSCO CORP
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 1
Chunk 71
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 2025, respectively, for our U.S. Foodservice Operations, which was a decrease of 20 basis points compared to gross margin of 19.1% in the second quarter of fiscal 2024, and a decrease of 32 basis points compared to a gross margin of 19.3% in the first 26 weeks of fiscal 2024, primarily due to a change in customer mix, a decrease in Sysco brand penetration, and timing of benefits from strategic sourcing initiatives.

The increase in operating expenses for the second quarter and first 26 weeks of fiscal 2025, as compared to the second quarter and first 26 weeks of fiscal 2024, was primarily driven by increases in colleague-related costs and freight costs, which are largely correlated with the increase in volumes, depreciation expense, and bad debt expense, partially offset by gains related to sale leaseback transactions.

33

Results of International Foodservice Operations

The following table sets forth a summary of the components of operating income and adjusted operating income expressed as a percentage increase or decrease over the comparable period in the prior year:

 13-Week Period Ended Dec. 28, 202413-Week Period Ended Dec. 30, 2023Change in Dollars% Change (Dollars in millions)Sales$3,728 $3,597 $131 3.6 %Gross profit760 708 52 7.3 Operating expenses665 625 40 6.4 Operating income$95 $83 $12 14.5 %Gross profit$760 $708 $52 7.3 %Adjusted operating expenses (Non-GAAP)631 606 25 4.1 Adjusted operating income (Non-GAAP)$129 $102 $27 26.5 %Sales on a constant currency basis (Non-GAAP)$3,748 $3,597 $151 4.2 %Gross profit on a constant currency basis (Non-GAAP)760 708 52 7.3 Adjusted operating expenses on a constant currency basis (Non-GAAP)630 606 24 4.0 Adjusted operating income on a constant currency basis (Non-GAAP)$130 $102 $28 27.5 % 26-Week Period Ended Dec. 28, 202426-Week Period Ended Dec. 30, 2023Change in Dollars % Change (Dollars