Tyson Foods Q1 2022 Earnings Report
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
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.