Tyson Foods Q4 2021 Earnings Report
Key Takeaways
Tyson Foods reported strong fourth-quarter and fiscal year 2021 results, delivering double-digit sales and earnings growth. The company's performance was supported by its diverse portfolio and continued strength in consumer demand for protein. A new productivity program is being launched to achieve over $1 billion in annual savings by the end of 2024.
GAAP EPS of $3.71, up 107% from prior year; Adjusted EPS of $2.30, up 35% from prior year
GAAP operating income of $1,909 million, up 98% from prior year; Adjusted operating income of $1,152 million, up 26% from prior year
Total Company GAAP operating margin of 14.9%; Adjusted operating margin of 9.0%
Liquidity of $4.8 billion at October 2, 2021
Tyson Foods
Tyson Foods
Tyson Foods Revenue by Segment
Forward Guidance
For fiscal 2022, the USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly as compared to fiscal 2021 levels. We are targeting $1 billion in productivity savings by the end of fiscal 2024 and $300 million to $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline.
Positive Outlook
- Beef adjusted operating margin between 9% to 11% in fiscal 2022.
- Pork segment's adjusted operating margin will be 5% to 7% in fiscal 2022.
- Chicken adjusted operating margin at the lower end of 5% to 7% for fiscal 2022.
- Prepared Foods adjusted operating margin will be around 7% to 9% in fiscal 2022.
- Sales to approximate $49 billion to $51 billion in fiscal 2022.
Challenges Ahead
- USDA projects domestic beef production will decrease approximately 2% in fiscal 2022 as compared to fiscal 2021.
- USDA projects domestic pork production will decrease approximately 2% in fiscal 2022 as compared to fiscal 2021.
- USDA projects chicken production will increase slightly in fiscal 2022 as compared to fiscal 2021.
- We expect net interest expense to approximate $380 million for fiscal 2022.
- We currently expect our adjusted effective tax rate to be around 23% in fiscal 2022.