Sysco FY 2Q15 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Acute inflationary pressures in meat and dairy

“We generated nearly 4% case volume growth during the quarter and effectively managed acute inflationary pressures in our meat and dairy categories.”

Positive traffic growth for mid and casual dining for first time since ’08

“NPD, which tracks restaurant trends, recently reported positive traffic growth in the mid-scale and casual dining sectors for the first time since 2008.”

Food cost inflation was 6%

“Food cost inflation was 6%, driven mainly by double-digit inflation in the meat and dairy categories.”

Some of the truck driver shortage may be because those workers went into the energy business

“over the last few years, several of our markets are very much energy driven or intensive. There is a lot of good jobs out there on the energy side. Some of those jobs are very competitive or more competitive in terms of lifestyle and wages to what we offer. And so in those markets where energy has been strong, we struggled to some extent”

A little insight into an ERP implementation

“And the other thing we are doing more of, which we spoke to here today, is taking some of the other applications, whether they’re financial or HR, maintenance that type of thing, even for the SA — even for the non-SAP OpCos bring those into SPS, accelerating network to where SPS is now, supporting in certain areas, not just the 12 OpCos that run SAP, but these are the functional support software packages as well.

So to summarize, I think it’s a combination that we’re continuing to enhance the support around and the software that the 12 OpCos are using as well as beginning to leverage SPS in a different way and as I said. So, A, we’re providing better services to the 12 OpCos today, but also when we do begin to redeploy again, those future conversions can go more, more smoothly. And then we’re still — we’re going to defer any further deployments until we understand the timing of the merger a little bit better.”