Revenue during the quarter grew 11.19 percent to $13,968.65 million from $12,562.61 million in the previous year period. Gross margin for the quarter expanded 146 basis points over the previous year period to 19.27 percent. Total expenses were 95.94 percent of quarterly revenues, down from 96.07 percent for the same period last year. This has led to an improvement of 13 basis points in operating margin to 4.06 percent.

Operating income for the quarter was $566.83 million, compared with $493.47 million in the previous year period.

However, the adjusted operating income for the quarter stood at $626.83 million compared to $506.48 million in the prior year period. At the same time, adjusted operating margin improved 46 basis points in the quarter to 4.49 percent from 4.03 percent in the last year period.

"I am pleased with our first quarter performance which built upon the favorable results we have achieved over the past several quarters," said Bill DeLaney, Sysco’s chief executive officer. "We continued to focus on supporting the needs of our customers and achieved strong earnings growth through solid execution in a softening industry environment. We remain committed to achieving our three-year plan financial goals."

The company has spent $3,048.46 million cash to meet investing activities during the quarter as against cash outgo of $35.06 million in the last year period. It has incurred capital expenditure of $137.99 million on net basis during the quarter, up 15.25 percent or $18.26 million from year ago period.

The company has spent $389.66 million cash to carry out financing activities during the quarter as against cash outgo of $4,437.40 million in the last year period.

Cash and cash equivalents stood at $759.90 million as on Oct. 01, 2016, up 95.72 percent or $371.64 million from $388.26 million on Sep. 26, 2015.

Working capital declines
Sysco Corporation has witnessed a decline in the working capital over the last year. It stood at $2,768.92 million as at Oct. 01, 2016, down 9.43 percent or $288.22 million from $3,057.14 million on Sep. 26, 2015. Current ratio was at 1.52 as on Oct. 01, 2016, down from 1.77 on Sep. 26, 2015.

Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 24 days for the last year period. Days sales outstanding were almost stable at 25 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 12 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 25 for the same period last year.