Food supplier, Sysco Corp. has seen its profits for the second quarter go up by no less than 13 per cent. Profit for the three months ending December 26 rose to $268.3 million, from $237.7 million.

This means that earned a profit of 45 cents per share as against 40 cents last year for the same period. The good news is that this profit is higher than what the analysts had expected.

The revenue, however, fell by 3 per cent to stand at $8.87 billion as against $9.15 billion last year. The reason for the increased profits coupled with falling revenue is that Sysco has undergone aggressive cost cutting measures and that has helped it to stabilize low revenue. "While the business environment remains challenging, deflation pressures appear to be moderating from highs we saw early in the quarter and case volume trends continue to improve," CEO Bill DeLaney said.

Sysco has been able to earn more revenue because of the food deflation that has stopped it from raising the prices of its products. The deflation has also caused the sales to fall by 3.5% in the above mentioned period.