Tyson foods, good results but beef is in crisis
Quarterly rise to $ 13.3 billion for the largest meat company USA: only the drop in cattle (-117 million $)
Tyson Foods posted better-than-expected results in the first quarter of fiscal year 2024. The largest US meat company has beaten market expectations regarding revenues and profits in the first quarter, sending stocks to the maximum for nine months, with a rise that yesterday reached almost +3%.
The company recorded a adjusted profit of 69 cents per share, compared to analysts' estimates of 41 cents. Net sales of the US meat packer increased by 0.4% to $13.32 billion, beating analysts' estimates of $13.27 billion. In fact, according to the company, the good quarterly results show that demand for its meat products is starting to recover as concerns about inflation abate: However, Tyson said he is continuing to evaluate his operations after closing US chicken factories last year.
"Achieving excellent results in the first quarter and our business results influence our thinking. But we continue to evaluate all options," explains cfo John R. Tyson. Also because, while the overall results are good, those of, for example, the beef segment are not so good, which is also the largest and recorded an adjusted operating loss of 117 million dollars in the quarter, compared to adjusted operating income of $129 million a year earlier. Revenues from segment sales increased by 6.3%, thanks to the increase in prices, which rose by 10.5%: however, the volume decreased by 4.1%.
The chicken meat segment saw prices hit all-time highs in US grocery stores last year but, for Tyson, prices fell by about 4%, while volumes fell by 1.5%. In the last year, the company, in an effort to reduce costs, closed its chicken production facilities, consolidated its activities and laid off employees. The adjusted operating profit of the chicken segment increased by almost 150% over the previous year, reaching 192 million dollars.
Volumes of the Tyson pig segment increased by 7.7% over the previous year, while the prepared food segment, which produces Ball Park hot dogs and Jimmy Dean sausages, saw a volume increase of 2.5%.
In recent days, the company has officially opened its new $355 million food production facility in Bowling Green, Kentucky.The site was built to support the expansion of bacon production capacity. It will create nearly 450 new jobs in south-central Kentucky. Tyson predicts that the 400,000 square meter facility will produce nearly 920 tons of "superior quality" retail products every week from Jimmy Dean and Bacon, as well as bacon used in catering services.
EFA News - European Food Agency