Food Distributor Sysco Sees Inflation Moderating After 13% Jump

(Bloomberg) -- Food distributor Sysco Corp. says elevated inflation levels will moderate in the middle of 2022 after surging last quarter.

Sysco’s product cost inflation was about 13% in its most recent quarter compared with last year, the company said Tuesday after reporting results. The U.S. inflation rate measures the higher costs primarily for meat, poultry and canned and dry products, Houston-based Sysco said. It also called out shortening and oil for being inflationary.

“While we do expect inflation to moderate by the fourth quarter of fiscal 2022, it may take longer to taper than originally anticipated, though it is hard to predict,” Chief Financial Officer Aaron Alt said during a conference call. “We are operating in a dynamic environment with significant inflation.”

The company, which is in the second quarter of its fiscal year, expects to pass through the majority of its higher expenses to its customers, which include restaurants, schools and health-care facilities.

©2021 Bloomberg L.P.