Sysco Corporation (NYSE:SYY) reaffirmed its fiscal 2027 financial guidance and increased its growth targets for fiscal 2028 and 2029, while announcing a multi-year artificial intelligence efficiency programme targeting at least $500 million in savings.
The foodservice distribution company provided the updated targets ahead of its presentation at the Barclays 19th Annual Global Consumer Staples Conference in Boston.
For fiscal 2027, Sysco continues to expect net sales growth of approximately 6% to 7%, taking revenue to about $90 billion.
Adjusted earnings per share are forecast at between $5.02 and $5.12, representing growth of approximately 9% to 11% on a 53-week basis.
Sysco increases fiscal 2028 and 2029 targets
Sysco raised its mid-term annualised net sales growth target for fiscal 2028 and 2029 to between 4% and 7%. The company’s previous target range was 4% to 6%.
The annualised adjusted EPS growth target was increased to between 9% and 11%, compared with the previous forecast of 6% to 8%.
The fiscal 2027 and mid-term forecasts relate to Sysco’s core standalone operations and exclude the proposed Jetro Restaurant Depot transaction.
Sysco expects that transaction to close by the third quarter of fiscal 2027.
AI programme targets at least $500 million in savings
Sysco also announced a multi-year programme using artificial intelligence and automation that is expected to generate at least $500 million in efficiency savings by fiscal 2029.
The company said $100 million of expected savings during fiscal 2027 is already reflected in its existing guidance.
The programme covers several areas of Sysco’s operations, including modernisation of routing software, supply-chain productivity, automation within merchandising and procurement, management of indirect spending and simplification of back-office processes.
“The $500 million of AI powered efficiency improvement will deploy over the next three years,” said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer. “These savings reflect a durable change in how we execute our day-to-day business across truck routing, merchandising, and sales.”
Sysco’s updated mid-term targets incorporate the expected benefits from the efficiency programme but continue to exclude the Jetro Restaurant Depot transaction.
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