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Jan 01, 2022
Tyson Foods Q1 2022 Earnings Report
Tyson Foods reported strong operating results driven by strong consumer demand.
Key Takeaways
Tyson Foods reported a strong first quarter in 2022, with GAAP EPS up 140% and GAAP operating income up 106% from the prior year. The company's performance reflects the resilience of its multi-protein portfolio, even with continued market volatility. They are targeting $1 billion in productivity savings by the end of fiscal 2024 and $300 million to $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline.
GAAP EPS of $3.07, up 140% from prior year; Adjusted EPS of $2.87, up 48% from prior year
GAAP operating income of $1,455 million, up 106% from prior year; Adjusted operating income of $1,432 million, up 40% from prior year
Total Company GAAP operating margin of 11.3%; Adjusted operating margin of 11.1%
Liquidity of $5.2 billion at January 1, 2022 and Repurchased 4.2 million shares for $348 million
Tyson Foods
Tyson Foods
Tyson Foods Revenue by Segment
Revenue by Segment
Beef Revenue
CapyFin.comPork Revenue
CapyFin.comChicken Revenue
CapyFin.comPrepared Foods Revenue
CapyFin.comInternational/Other Revenue
CapyFin.com Forward Guidance
For fiscal 2022, the USDA indicates domestic protein production should be relatively flat as compared to fiscal 2021 levels. We are targeting $1 billion in productivity savings by the end of fiscal 2024 and $300 million to $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline.
Positive Outlook
- Beef adjusted operating margin at the upper end of 9% to 11% in fiscal 2022.
- Pork segment's adjusted operating margin will be 5% to 7% in fiscal 2022.
- Chicken adjusted operating margin of 5% to 7% for fiscal 2022.
- Prepared Foods adjusted operating margin will be at the upper end of 7% to 9% in fiscal 2022.
- Sales to be at the upper end of $49 billion to $51 billion in fiscal 2022.
Challenges Ahead
- USDA projects domestic beef production will decrease approximately 1% in fiscal 2022 as compared to fiscal 2021.
- USDA projects domestic pork production will decrease approximately 2% in fiscal 2022 as compared to fiscal 2021.
- USDA projects chicken production will increase approximately 2% in fiscal 2022 as compared to fiscal 2021.
- We expect net interest expense to approximate $360 million for fiscal 2022.
- We currently expect our adjusted effective tax rate to be around 23% in fiscal 2022.