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Jul 02, 2022
Tyson Foods Q3 2022 Earnings Report
Tyson Foods reported solid results in Q3 2022, focusing on operational excellence and aggressive cost management. The turnaround of the chicken business continued, and the company maintained its market share leadership in many retail business lines.
Key Takeaways
Tyson Foods delivered solid results in the third quarter, driven by operational excellence and aggressive cost management. The chicken business turnaround continued, and the company maintained its market share leadership in key retail business lines. The company is progressing toward its goal of delivering over $1 billion in recurring productivity savings by the end of fiscal 2024.
GAAP EPS of $2.07, up 1% from prior year; Adjusted EPS of $1.94, down 28% from prior year
GAAP operating income of $1,033 million, down 3% from prior year; Adjusted operating income of $998 million, down 27% from prior year
Total Company GAAP operating margin of 7.7%; Adjusted operating margin of 7.4%
Liquidity of $3.3 billion at July 2, 2022
Revenue by Segment
Forward Guidance
For fiscal 2022, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should be relatively flat compared to fiscal 2021 levels. We are targeting $1 billion in productivity savings by the end of fiscal 2024 and more than $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline. We expect sales to be $52 billion to $54 billion in fiscal 2022.
Positive Outlook
- USDA projects domestic beef production will increase approximately 1% in fiscal 2022 as compared to fiscal 2021.
- We anticipate another strong year with adjusted operating margin between 11% and 13% in fiscal 2022 for Beef.
- USDA projects chicken production will increase approximately 1% in fiscal 2022 as compared to fiscal 2021.
- We anticipate an adjusted operating margin of 5% to 7% for fiscal 2022 for Chicken.
- We will remain disciplined in our revenue management to ensure that additional inflationary pressures are mitigated by sales price increases, while also working diligently to deliver productivity savings to reduce costs for Prepared Foods.
Challenges Ahead
- USDA projects domestic pork production will decrease approximately 3% in fiscal 2022 as compared to fiscal 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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