Company: SYY
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000096021-25-000157
Chunk: 7

Company: SYSCO CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 7
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81 2.1 %Gross profit on a constant currency basis (Non-GAAP)802 774 28 3.6 Adjusted operating expenses on a constant currency basis (Non-GAAP)656 644 12 1.9 Adjusted operating income on a constant currency basis (Non-GAAP)$146 $130 $16 12.3 %

Sales

The following table sets forth the percentage and dollar value increase or decrease in the major components impacting sales as compared to the corresponding prior year period in order to demonstrate the cause and magnitude of change.

Increase (Decrease)13-Week Period(Dollars in millions)Cause of changePercentageDollarsInflation4.5 %$173 Foreign currency2.4 91 Case volume0.6 15 Impact of divestiture(3.4)(117)Other0.4 10 Total change in sales4.5 %$172 

Sales for the first quarter of fiscal 2026 increased 4.5% as compared to the first quarter of fiscal 2025, primarily due to higher inflation, the impact of foreign currency translation, and local case growth. Excluding the impact of the Mexico joint venture, which was divested in the second quarter of fiscal 2025, sales increased 7.9% in the first quarter of fiscal 2026 as compared to the first quarter of fiscal 2025. 

28

Operating Income

The increase in operating income for the first quarter of fiscal 2026, as compared to the first quarter of fiscal 2025, was primarily due to growth in local case volumes and success in our strategic sourcing program, partially offset by increases in operating expenses.

The increase in gross profit dollars in the first quarter of fiscal 2026, as compared to the first quarter of fiscal 2025, was primarily attributable to increases in local case volumes and benefits from our strategic sourcing efforts. Local case volumes increased approximately 5% in the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025.

The increase in operating expenses in the first quarter of fiscal 2026 as compared to the first quarter of fiscal 2025 was primarily due to increases in colleague-related costs and the impact of foreign currency translation.

Results of SYGMA and Other Segment

SYGMA segment sales were 4.1% higher in the first quarter of fiscal 2026, as compared to the first quarter of fiscal 2025