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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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