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Dec 30, 2023
Tyson Foods Q1 2024 Earnings Report
Tyson Foods' financial performance reflected a mix of challenges and strategic gains, with sales slightly up but operating income significantly down compared to the previous year, while adjusted operating income showed sequential growth.
Key Takeaways
Tyson Foods reported a slight increase in sales but a significant decrease in GAAP operating income. Adjusted operating income, however, showed sequential growth. The company is focused on liquidity, operational excellence, and customer relations.
Sales increased by 0.4% year-over-year, reaching $13,319 million.
GAAP operating income decreased by 51% year-over-year, totaling $231 million.
Adjusted operating income decreased by 9% year-over-year, amounting to $411 million.
GAAP EPS decreased by 66% year-over-year, resulting in $0.30 per share.
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
Tyson Foods anticipates slight increase in domestic protein production. The company provided outlooks for adjusted operating income for each segment, expecting sales to be relatively flat in fiscal year 2024. Capital expenditures are projected between $1.0 billion and $1.5 billion, and net interest expense is expected to approximate $400 million. The adjusted effective tax rate is expected to be 23% to 24%.
Positive Outlook
- USDA projects domestic protein production will increase slightly in fiscal 2024.
- Anticipate adjusted operating income of breakeven to $100 million in Pork.
- Anticipate adjusted operating income of $500 million to $700 million for Chicken.
- Anticipate adjusted operating income of $800 million to $1 billion in Prepared Foods.
- Anticipate improved results from our foreign operations in fiscal 2024 on an adjusted basis.
Challenges Ahead
- USDA projects domestic beef production will decrease approximately 2% in fiscal 2024.
- Anticipate adjusted operating income (loss) between ($400) million and breakeven in Beef.
- Expect sales to be relatively flat in fiscal 2024 as compared to fiscal 2023.
- Expect net interest expense to approximate $400 million for fiscal 2024.
- Currently expect adjusted effective tax rate to be 23% to 24% for fiscal 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income