November 16, 2023

 

Tyson Foods reveals Q4 earnings, lower prices impact poultry and meat markets

 

In its fiscal fourth quarter ending September 30, 2023, Tyson Foods announced a mixed performance in the poultry and red meat markets, as its operating income loss decreased by 160% to US$463 million, or US$0.37 per share on common stock, compared to US$766 million, or US$1.63 per share, in the same period last year, Meat + Poultry reported.

 

Tyson noted a reduced operating margin loss of 3.5% for the quarter, down from 5.6% year-on-year. Sales for the fiscal fourth quarter saw a 2.9% decline, totalling US$13.35 billion compared to US$13.74 billion in 2022.

 

The company's president and chief executive officer, Donnie King, said that while there are economic challenges, the company is moving in the right direction and managing what they can control.

 

During the fourth quarter, prices experienced declines, particularly in chicken at 9.2% lower and an overall drop of 1.4%. Annual prices were down 1.5% overall, encompassing a 1.9% decrease in chicken prices and a 1.3% decline in the prepared foods segment.

 

For the fiscal year, Tyson Foods reported slightly lower sales of US$52.88 billion compared to US$53.28 billion in fiscal year 2022. Net income showed a loss of US$648 million compared to the previous year's US$3.25 billion.

 

Tyson's beef segment faced challenges, with a quarterly operating income loss of US$323 million, attributed to lower demand for beef despite a 10.2% increase in average beef prices. For the year, the operating income for beef stood at a US$91 million loss.

 

The pork segment also experienced a decline in operating income, with a reported loss of US$11 million in the fourth quarter compared to a loss of US$55 million in the same quarter of fiscal 2022.

 

On a positive note, Tyson's chicken business segment saw a quarterly profit, with a 1.7% increase in sales volume, reaching US$4.15 billion. Chicken sales for the year stood at US$17.06 billion compared to US$16.96 billion in 2022.

 

In the prepared foods segment, despite a 1.6% decline in average sales prices, sales for the year increased to US$9.85 billion in fiscal 2023 compared to US$9.69 billion in 2022. Operating income for the quarter and the year went up to US$118 million and US$823 million, respectively.

 

Tyson's international segment reported varied results, with lower sales for the quarter at US$636 million, a decrease of 0.3% over 2022. However, annual sales increased by 6.4% to US$2.52 billion in fiscal 2023 compared to US$2.36 billion the previous year.

 

The company anticipates an adjusted operating income of US$400 million to US$700 million for the next fiscal year.

 

-      Meat + Poultry