Tyson Foods Q3 2023 Earnings Report
Key Takeaways
Tyson Foods reported a 3% decrease in sales to $13.14 billion and a GAAP operating loss of $350 million for Q3 2023. Adjusted EPS was $0.15, down 92% year-over-year. The company announced the closure of four chicken facilities to reduce costs and improve capacity utilization.
Sales decreased by 3% year-over-year to $13.14 billion.
GAAP operating loss was $350 million, a 134% decrease year-over-year.
Adjusted EPS was $0.15, down 92% year-over-year.
Announced closure of four chicken facilities to optimize network asset utilization.
Tyson Foods
Tyson Foods
Tyson Foods Revenue by Segment
Forward Guidance
Tyson Foods anticipates sales of $53 billion to $54 billion in fiscal year 2023, with capital expenditures around $2.1 billion and net interest expense approximating $340 million. The adjusted effective tax rate is expected to be around 22%.
Positive Outlook
- USDA projects domestic protein production will increase slightly compared to fiscal 2022 levels.
- We anticipate an adjusted operating margin of 8% to 10% in Prepared Foods for fiscal 2023 driven by volume growth, productivity and disciplined revenue management.
- We anticipate improved results from our foreign operations in fiscal 2023 on an adjusted basis.
- Capital expenditures include spending for capacity expansion and utilization, automation to alleviate labor challenges and brand and product innovation.
- We expect total liquidity, which was approximately $3.7 billion as of July 1, 2023, to remain above our minimum liquidity target of $1.0 billion.
Challenges Ahead
- USDA projects domestic beef production will decrease approximately 3% in fiscal 2023 as compared to fiscal 2022.
- We anticipate an adjusted operating margin of (1)% to 1% in Beef for fiscal 2023 as margins are expected to decrease.
- We anticipate adjusted operating margin of (4)% to (2)% in Pork for fiscal 2023.
- We anticipate an adjusted operating margin of (1)% to 1% for Chicken for fiscal 2023.
- We currently estimate total charges of $300 million to $400 million which will be recorded through the planned closure dates of Chicken segment processing facilities.