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2010 Annual Report 7
ince Sysco’s inception, our mission has been to market
and deliver great products to our customers with exceptional service. In fiscal
2010, remaining focused on that mission allowed us to deliver the most profitable
year in our 40-year history as a public company – while operating in a very challeng-
ing business environment for a second consecutive year.
Throughout this letter, we will address our fiscal 2010 financial results, provide
context on the market and industry environment, outline Sysco’s initiatives to
drive profitable growth, update you on recent leadership changes and share our
view for the future.
For the fiscal year ending July 3, 2010, we achieved sales of $37.2 billion and
operating income of $2.0 billion. This year, we had the advantage of a 53-week
year, but even adjusted for the extra week, our earnings per share was our highest
on record. We are proud of the results our associates produced this year and grat-
ified to be able to continue to invest substantial sums of capital in our business.
We did see a more favorable market environment begin to emerge in the second
half of the fiscal year, as evidenced by both modest case volume growth and mod-
erate food cost inflation. While the extent, pace and consistency of the economic
recovery are not clear, our strong operating cash flow and balance sheet position
us well to capitalize on opportunities moving forward.
What is clear is that consumer confidence is still suffering and, as a result, people
are making more value-focused spending decisions. We’ve seen, however, that
they are still willing to spend money on food away from home – foodservice has
become an essential industry and has demonstrated remarkable resilience during
a tough economy. Eating out remains a relatively low-cost form of entertainment
inwhich people still want to invest.
To Our Shareholders
“We will continue to invest in profitably growing our
business, both organically and through acquisitions.”
Bill DeLaney
President & Chief Executive Officer
Net Earnings of
$1.2 billion
This was an increase of 11.7 percent
compared to the prior year.