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Jul 01, 2023
Tyson Foods Q3 2023 Earnings Report
Tyson Foods' Q3 2023 performance reflected a 3% decrease in sales compared to the previous year, with a GAAP operating loss of $350 million and an adjusted EPS of $0.15, signaling a challenging market environment.
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
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 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.