Foodservice giant Sysco has reported a sales drop for its fiscal first quarter, the fourth consecutive quarter that they have fallen, but also reported a better-than-expected rise in net profit. The group said sales were affected by food cost deflation, which affected its ability to raise prices. Profits however, were boosted by cost-cutting measures, such as lowering headcount, bonuses and commissions.

For the quarter ending 26 September, net profit rose by 18% to $326.2m, compared with $276.8m last year. Sales, meanwhile, were down 8% year-on-year to $9.08bn. The company also said it had seen stabilization in volume trends in recent weeks.

NamNews - Thursday 5th November 2009

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