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Oct 03, 2020
Tyson Foods Q4 2020 Earnings Report
Tyson Foods reported a strong fourth quarter and fiscal year 2020 results.
Key Takeaways
Tyson Foods reported strong Q4 and fiscal year 2020 results, with GAAP EPS up 88% and GAAP operating income up 68% compared to the prior year. The company remains focused on worker health and safety, and long-term growth, while navigating pandemic-related challenges.
GAAP EPS of $1.90, up 88% from prior year; Adjusted EPS of $1.81 (13-week basis), up 50% from prior year
GAAP operating income of $1,012 million, up 68% from prior year; Adjusted operating income of $961 million (13-week basis), up 40% from prior year
Total Company GAAP operating margin of 8.8%; Adjusted operating margin of 9.0% (13-week basis)
Liquidity of $3.2 billion at October 3, 2020
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
For fiscal 2021, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase approximately 1% from fiscal 2020 levels. On an adjusted basis, we anticipate the Beef and Pork segments will remain strong, although not at fiscal 2020 levels, and we believe the Chicken and Prepared Foods segments will likely strengthen in fiscal 2021 as compared to fiscal 2020.
Positive Outlook
- USDA projects domestic production will increase approximately 2% in fiscal 2021 as compared to a COVID-19 impacted fiscal 2020.
- We also expect sufficient supplies in regions where we operate our plants.
- USDA projects relatively flat to slightly increased domestic production in fiscal 2021 as compared to a COVID-19 impacted fiscal 2020.
- USDA projects a relatively flat to slightly increased outlook for chicken production in fiscal 2021 as compared to fiscal 2020.
- We expect improved results from our foreign operations in fiscal 2021.
Challenges Ahead
- These challenges are anticipated to increase our operating costs and negatively impact our volumes into fiscal 2021.
- We cannot currently predict the ultimate impact that COVID-19 will have on our short- and long-term demand, as it will depend on, among other things, the severity and duration of the COVID-19 crisis.
- COVID-19 – We continue to proactively manage the company and its operations through this global pandemic.
- Given the nature of our business, demand for food and protein may shift amongst sales channels and experience disruptions, but over time we expect worldwide demand to continue to increase.
- We are experiencing multiple challenges related to the pandemic.