Tyson Foods Inc reports their fourth quarter and fiscal 2023 results.
“While economic headwinds persist, we are moving in the right direction and managing what we can control," said Donnie King, president & CEO, Tyson Foods. "The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”
Segment results (in millions)
Sales | ||||||||||||||||||||||||||
(For the fourth quarter and twelve months ended Sept. 30, 2023, and Oct. 1, 2022) | ||||||||||||||||||||||||||
|
Fourth quarter |
Twelve months ended |
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|
|
|
Volume change |
Avg. price change |
|
|
Volume change |
Avg. price change |
||||||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
||||||||||||||
Beef |
$5,029 |
|
$ |
4,859 |
|
(6.7 |
)% |
10.2 |
% |
$ |
19,325 |
|
$ |
19,854 |
|
(3.1 |
)% |
0.4 |
% |
|
||||||
Pork |
1,494 |
|
|
1,604 |
|
(0.2 |
)% |
(6.7 |
)% |
|
5,768 |
|
|
6,414 |
|
(2.2 |
)% |
(7.9 |
)% |
|
||||||
Chicken |
4,155 |
|
|
4,619 |
|
1.7 |
% |
(9.2 |
)% |
|
17,060 |
|
|
16,961 |
|
3.4 |
% |
(1.9 |
)% |
|
||||||
Prepared Foods |
2,502 |
|
|
2,516 |
|
1.0 |
% |
(1.6 |
)% |
|
9,845 |
|
|
9,689 |
|
0.3 |
% |
1.3 |
% |
|
||||||
International/other |
636 |
|
|
638 |
|
4.9 |
% |
(5.2 |
)% |
|
2,515 |
|
|
2,355 |
|
4.9 |
% |
1.9 |
% |
|
||||||
Intersegment sales |
(468) |
) |
|
(499 |
) |
n/a |
|
n/a |
|
|
(1,632 |
) |
|
(1,991 |
) |
n/a |
|
n/a |
|
|
||||||
Total |
$13,348 |
|
$ |
13,737 |
|
(0.6 |
)% |
(1.4 |
)% |
$ |
52,881 |
|
$ |
53,282 |
|
1.0 |
% |
(1.5 |
)% |
|
||||||
Operating income (loss) | |||||||||||||||||||
(For the fourth quarter and twelve months ended Sept. 30, 2023, and Oct. 1, 2022) | |||||||||||||||||||
|
Fourth quarter |
Twelve months ended |
|||||||||||||||||
|
|
|
Operating margin |
|
|
Operating margin |
|||||||||||||
|
|
2023 |
|
|
2022 |
|
2023 |
2022 |
|
2023 |
|
|
2022 |
2023 |
2022 |
||||
Beef |
$ |
(323 |
) |
$ |
375 |
|
(6.4 |
)% |
7.7 |
% |
$ |
(91 |
) |
$ |
2,502 |
(0.5 |
)% |
12.6 |
% |
Pork |
|
(11 |
) |
|
(55 |
) |
(0.7 |
)% |
(3.4 |
)% |
|
(139 |
) |
|
193 |
(2.4 |
)% |
3.0 |
% |
Chicken |
|
(267 |
) |
|
340 |
|
(6.4 |
)% |
7.4 |
% |
|
(770 |
) |
|
955 |
(4.5 |
)% |
5.6 |
% |
Prepared Foods |
|
118 |
|
|
111 |
|
4.7 |
% |
4.4 |
% |
|
823 |
|
|
746 |
8.4 |
% |
7.7 |
% |
International/Other |
|
20 |
|
|
(5 |
) |
n/a |
|
n/a |
|
|
(218 |
) |
|
14 |
n/a |
|
n/a |
|
Total |
$ |
(463 |
) |
$ |
766 |
|
(3.5 |
)% |
5.6 |
% |
$ |
(395 |
) |
$ |
4,410 |
(0.7 |
)% |
8.3 |
% |
Adjusted segment results (in millions)
Adjusted operating income (loss) (non-GAAP) | |||||||||||||||||||
(For the fourth quarter and twelve months ended Sept. 30, 2023, and Oct. 1, 2022) | |||||||||||||||||||
|
Fourth quarter |
Twelve months ended |
|||||||||||||||||
|
|
|
Adjusted operating margin (non-GAAP) |
|
|
Adjusted operating margin (non-GAAP) |
|||||||||||||
|
|
2023 |
|
|
2022 |
|
2023 |
2022 |
|
2023 |
|
2022 |
2023 |
2022 |
|||||
Beef |
$ |
17 |
|
$ |
391 |
|
0.3 |
% |
8.0 |
% |
$ |
233 |
|
$ |
2,491 |
1.2 |
% |
12.5 |
% |
Pork |
|
(8 |
) |
|
(50 |
) |
(0.5 |
)% |
(3.1 |
)% |
|
(128 |
) |
|
198 |
(2.2 |
)% |
3.1 |
% |
Chicken |
|
75 |
|
|
337 |
|
1.8 |
% |
7.3 |
% |
|
(77 |
) |
|
926 |
(0.4 |
)% |
5.5 |
% |
Prepared Foods |
|
151 |
|
|
147 |
|
6.0 |
% |
5.8 |
% |
|
889 |
|
|
782 |
9.0 |
% |
8.1 |
% |
International/other |
|
1 |
|
|
(2 |
) |
n/a |
|
n/a |
|
|
16 |
|
|
17 |
n/a |
|
n/a |
|
Total |
$ |
236 |
|
$ |
823 |
|
1.8 |
% |
6.0 |
% |
$ |
933 |
|
$ |
4,414 |
1.8 |
% |
8.3 |
% |
Average price change and adjusted operating margin for the chicken segment and total company exclude $118 million and $156 million for the three and twelve months ended Sept. 30, 2023, respectively, of legal contingency accruals recognized as a reduction to sales.
Outlook
For fiscal 2024, the United States Department of Agriculture indicates domestic protein production — beef, pork, chicken and turkey — should decrease slightly compared to fiscal 2023 levels. The following is a summary of the updated outlook for each of Tyson’s segments. Certain of the outlook numbers include adjusted operating margin (a non-GAAP metric) for each segment. The company is not able to reconcile its full-year fiscal 2024 projected adjusted results to its fiscal 2024 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of Tyso's control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating margin should not be considered a substitute for operating margin or any other measures of financial performance reported in accordance with GAAP. Investors should rely primarily on Tyson's GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.
Beef
USDA projects domestic production will decrease approximately 5% in fiscal 2024 as compared to fiscal 2023. Tyson anticipates adjusted operating income between ($400) million and breakeven in fiscal 2024.
Pork
USDA projects domestic production will increase approximately 2% in fiscal 2024 as compared to fiscal 2023. Tyson anticipates adjusted operating income to approximate breakeven in fiscal 2024.
Chicken
USDA projects chicken production will increase slightly in fiscal 2024 as compared to fiscal 2023. Tyson anticipates adjusted operating income of $400 million to $700 million for fiscal 2024. In fiscal 2023, Tyson announced the closure of six chicken facilities, expected to reduce costs and improve capacity utilization.
Source: Tyson Foods Inc.
