Tyson Foods Reports First Quarter 2022 Results

Rhea-AI Summary

Tyson Foods (TSN) reported impressive first-quarter results for 2022, driven by robust consumer demand. Sales surged to $12.93 billion, a 19.6% increase from $10.46 billion in Q1 2021. Operating income more than doubled to $1.46 billion, while net income rose to $1.12 billion, achieving a 140% year-over-year increase in GAAP EPS to $3.07. Segment performance varied, with beef and chicken demonstrating strong sales despite challenges. The company aims for $1 billion in productivity savings by 2024 and expects liquidity to remain above $1 billion throughout 2022.

Positive

• Sales increased by 19.6% to $12.93 billion, up from $10.46 billion.
• Operating income doubled to $1.46 billion, a 106% rise from the previous year.
• GAAP EPS rose 140% to $3.07, adjusted EPS up 48% to $2.87.
• Strong liquidity position of $5.2 billion, well above the $1 billion minimum target.
• Productivity program targets $1 billion in savings by 2024, with $300-$400 million expected in 2022.

Negative

• Beef sales volume decreased by 6.2% due to labor and supply chain issues.
• Prepared Foods segment saw a sales volume decrease associated with the divestiture of the pet treats business.

Delivers Strong Operating Results Driven by Strong Consumer Demand

SPRINGDALE, Ark., Feb. 07, 2022 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN), one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, today reported the following results:

(in millions, except per share data)			First Quarter
				2022			2021
Sales			$	12,933		$	10,460
Operating Income				1,455			705
Net Income				1,126			472
Less: Net Income Attributable to Noncontrolling Interests				5			5
Net Income Attributable to Tyson			$	1,121		$	467
Net Income Per Share Attributable to Tyson			$	3.07		$	1.28
Adjusted1 Operating Income			$	1,432		$	1,025
Adjusted1 Net Income Per Share Attributable to Tyson			$	2.87		$	1.94

¹ _{The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Adjusted operating income and adjusted net income per share attributable to Tyson (Adjusted EPS) are non-GAAP financial measures. Refer to the end of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP measures.}

First Quarter Highlights

• GAAP EPS of $3.07, up 140% from prior year; Adjusted EPS of $2.87, up 48% from prior year
• GAAP operating income of $1,455 million, up 106% from prior year; Adjusted operating income of $1,432 million, up 40% from prior year
• Total Company GAAP operating margin of 11.3%; Adjusted operating margin of 11.1%
• Liquidity of $5.2 billion at January 1, 2022
• Repurchased 4.2 million shares for $348 million
  

“We’re pleased with the results of the first quarter and of the steps that we are taking to improve productivity,” said Donnie King, President and CEO of Tyson Foods. “Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers and winning with excellence. We have the right team who are taking the right actions and as a result, we believe our future is bright.”

SEGMENT RESULTS (in millions)

Sales
(for the first quarter ended January 1, 2022, and January 2, 2021)
					First Quarter
											Volume		Avg. Price
						2022			2021		Change		Change 2
Beef					$	5,002		$	3,987		(6.2)	%	31.7	%
Pork						1,626			1,439		0.2	%	12.8	%
Chicken						3,890			2,831		3.6	%	19.9	%
Prepared Foods						2,333			2,113		(2.6)	%	13.0	%
International/Other						550			469		9.0	%	8.3	%
Intersegment Sales						(468	)		(379	)	n/a		n/a
Total					$	12,933		$	10,460		0.3	%	19.6	%

Operating Income (Loss)
(for the first quarter ended January 1, 2022, and January 2, 2021)
					First Quarter
											Operating Margin
						2022			2021		2022		2021
Beef					$	956		$	528		19.1	%	13.2	%
Pork						164			116		10.1	%	8.1	%
Chicken						140			(216	)	3.6	%	(7.6)	%
Prepared Foods						186			266		8.0	%	12.6	%
International/Other						9			11		n/a		n/a
Total					$	1,455		$	705		11.3	%	6.7	%

ADJUSTED SEGMENT RESULTS (in millions)

Adjusted Operating Income (Non-GAAP)
(for the first quarter ended January 1, 2022, and January 2, 2021)
					First Quarter
											Adjusted Operating Margin (Non-GAAP)
						2022			2021		2022		2021 2
Beef					$	956		$	528		19.1	%	13.2	%
Pork						164			116		10.1	%	8.1	%
Chicken						117			104		3.0	%	3.3	%
Prepared Foods						186			266		8.0	%	12.6	%
International/Other						9			11		n/a		n/a
Total					$	1,432		$	1,025		11.1	%	9.5	%

² _{Average Price Change and Adjusted Operating Margin for the Chicken Segment and Total Company exclude the impact of a $320 million legal contingency accrual recognized as a reduction to Sales in the first quarter of fiscal 2021.}

SUMMARY OF SEGMENT RESULTS

Beef
Sales volume decreased due to the impacts associated with a challenging labor environment and increased supply chain constraints, partially offset by strong global demand. Average sales price increased as input costs such as live cattle, labor, freight and transportation costs increased and demand for our beef products remained strong. Operating income increased due to strong demand as we continued to optimize revenues relative to live cattle supply and a reduction in direct incremental expenses related to COVID-19, partially offset by production inefficiencies due to the impacts associated with a challenging labor environment. Additionally, operating income in fiscal 2021 was impacted by a $55 million gain from the recovery of cattle inventory related to a cattle supplier's misappropriation of Company funds.

Pork
Sales volume was up slightly as strong global demand was offset by the impacts associated with a challenging labor environment. Average sales price increased as input costs such as live hogs, labor, freight and transportation costs increased and demand for our pork products remained strong, partially offset by unfavorable mix associated with labor shortages. Operating income increased due to strong demand as we optimized revenues relative to live hog supply and a reduction in direct incremental expenses related to COVID-19, partially offset by the impacts associated with a challenging labor environment.

Chicken
Sales volume increased primarily due to increased live production and a strong demand environment. Average sales price increased due to the effects of an inflationary cost environment. Operating income increased due to increased sales volume and higher average sales prices, partially offset by the impacts of inflationary market conditions including $185 million of higher feed ingredient costs, increased supply chain costs and a challenging labor environment. Additionally, operating income in the first quarter of fiscal 2022 was impacted by $23 million of insurance proceeds, net of costs incurred related to a fire at a production facility and was impacted in the first quarter of fiscal 2021 by a $320 million loss from the recognition of a legal contingency accrual.

Prepared Foods
Sales volume decreased due to the divestiture of our pet treats business in the fourth quarter of fiscal 2021 as well as lower production throughput primarily associated with a challenging labor and supply environment. Average sales price increased primarily due to the effects of revenue management in an inflationary cost environment. Operating income decreased due to the impacts of inflationary market conditions, including $215 million of increased raw materials and other input costs, increased supply chain costs and a challenging labor environment, partially offset by favorable pricing.

OUTLOOK
For fiscal 2022, the United States Department of Agriculture (“USDA”) indicates domestic protein production (beef, pork, chicken and turkey) should be relatively flat as compared to fiscal 2021 levels. The following is a summary of the outlook for each of our segments, as well as an outlook for revenues, capital expenditures, net interest expense, liquidity and tax rate for fiscal 2022.³

Beginning in fiscal 2022, we launched a new productivity program, which is designed to drive a better, faster and more agile organization that is supported by a culture of continuous improvement and faster decision making. 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. We are currently on track to achieve our planned productivity savings for fiscal 2022.

Beef
USDA projects domestic production will decrease approximately 1% in fiscal 2022 as compared to fiscal 2021. We anticipate another strong year with adjusted operating margin at the upper end of 9% to 11% in fiscal 2022. We expect the first half of the fiscal year will be stronger than the second half as a combination of higher utilization and demand for cattle may result in a narrowing spread.

Pork
USDA projects domestic production will decrease approximately 2% in fiscal 2022 as compared to fiscal 2021. We believe our Pork segment's adjusted operating margin will be 5% to 7% in fiscal 2022.

Chicken
USDA projects chicken production will increase approximately 2% in fiscal 2022 as compared to fiscal 2021. We anticipate an adjusted operating margin of 5% to 7% for fiscal 2022 as our adjusted operating margin is expected to achieve this on a run rate basis by the middle of the year resulting in overall stronger performance in the second half of the fiscal year.

Prepared Foods
We believe our adjusted operating margin will be at the upper end of 7% to 9% in fiscal 2022. We will remain disciplined in our pricing initiatives to ensure that additional inflationary pressures are mitigated by sales price increases, while also working diligently to deliver productivity savings to reduce costs.

International/Other
We anticipate improved results from our foreign operations in fiscal 2022.

Revenue
We expect sales to be at the upper end of $49 billion to $51 billion in fiscal 2022.

Capital Expenditures
We expect capital expenditures of approximately $2 billion for fiscal 2022. Capital expenditures include spending for capacity expansion and utilization, automation to alleviate labor challenges and brand and product innovation.

Net Interest Expense
We expect net interest expense to approximate $360 million for fiscal 2022.

Liquidity
We expect total liquidity, which was approximately $5.2 billion at January 1, 2022, to remain above our minimum liquidity target of $1.0 billion.

Tax Rate
We currently expect our adjusted effective tax rate to be around 23% in fiscal 2022.

³ _{The Company is not able to reconcile its full-year fiscal 2022 projected adjusted results to its fiscal 2022 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of the amount of future adjustments, such as legal contingency accruals and other significant items which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating margin should not be considered a substitute for operating margin or any other measures of financial performance reported in accordance with GAAP. Investors should rely primarily on the Company’s GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.}

TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)

		Three Months Ended
		January 1, 2022				January 2, 2021
Sales		$	12,933			$	10,460
Cost of Sales			10,918				9,283
Gross Profit			2,015				1,177
Selling, General and Administrative			560				472
Operating Income			1,455				705
Other (Income) Expense:
Interest income			(3	)			(2	)
Interest expense			100				110
Other, net			(52	)			(19	)
Total Other (Income) Expense			45				89
Income before Income Taxes			1,410				616
Income Tax Expense			284				144
Net Income			1,126				472
Less: Net Income Attributable to Noncontrolling Interests			5				5
Net Income Attributable to Tyson		$	1,121			$	467
Weighted Average Shares Outstanding:
Class A Basic			292				293
Class B Basic			70				70
Diluted			365				365
Net Income Per Share Attributable to Tyson:
Class A Basic		$	3.16			$	1.31
Class B Basic		$	2.84			$	1.18
Diluted		$	3.07			$	1.28
Dividends Declared Per Share:
Class A		$	0.475			$	0.470
Class B		$	0.428			$	0.423
Sales Growth			23.6	%
Margins: (Percent of Sales)
Gross Profit			15.6	%			11.3	%
Operating Income			11.3	%			6.7	%
Net Income Attributable to Tyson			8.7	%			4.5	%
Effective Tax Rate			20.2	%			23.4	%

TYSON FOODS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
(Unaudited)

	January 1, 2022				October 2, 2021
Assets
Current Assets:
Cash and cash equivalents	$	2,956			$	2,507
Accounts receivable, net		2,091				2,400
Inventories		4,454				4,382
Other current assets		635				533
Total Current Assets		10,136				9,822
Net Property, Plant and Equipment		8,012				7,837
Goodwill		10,550				10,549
Intangible Assets, net		6,459				6,519
Other Assets		1,667				1,582
Total Assets	$	36,824			$	36,309
Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	1,090			$	1,067
Accounts payable		2,115				2,225
Other current liabilities		2,829				3,033
Total Current Liabilities		6,034				6,325
Long-Term Debt		8,274				8,281
Deferred Income Taxes		2,274				2,195
Other Liabilities		1,700				1,654
Total Tyson Shareholders’ Equity		18,403				17,723
Noncontrolling Interests		139				131
Total Shareholders’ Equity		18,542				17,854
Total Liabilities and Shareholders’ Equity	$	36,824			$	36,309

TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

	Three Months Ended
	January 1, 2022				January 2, 2021
Cash Flows From Operating Activities:
Net income	$	1,126			$	472
Depreciation and amortization		300				298
Deferred income taxes		77				17
Other, net		11				18
Net changes in operating assets and liabilities		(82	)			580
Cash Provided by Operating Activities		1,432				1,385
Cash Flows From Investing Activities:
Additions to property, plant and equipment		(408	)			(289	)
Purchases of marketable securities		(7	)			(14	)
Proceeds from sale of marketable securities		7				15
Other, net		(51	)			29
Cash Used for Investing Activities		(459	)			(259	)
Cash Flows From Financing Activities:
Proceeds from issuance of debt		26				29
Payments on debt		(43	)			(29	)
Purchases of Tyson Class A common stock		(348	)			(17	)
Dividends		(164	)			(159	)
Stock options exercised		46				4
Other, net		(1	)			(1	)
Cash Used for Financing Activities		(484	)			(173	)
Effect of Exchange Rate Changes on Cash		2				16
Increase in Cash and Cash Equivalents and Restricted Cash		491				969
Cash and Cash Equivalents and Restricted Cash at Beginning of Year		2,637				1,466
Cash and Cash Equivalents and Restricted Cash at End of Period		3,128				2,435
Less: Restricted Cash at End of Period		172				29
Cash and Cash Equivalents at End of Period	$	2,956			$	2,406

TYSON FOODS, INC.
EBITDA Reconciliations
(In millions)
(Unaudited)

	Three Months Ended								Fiscal Year Ended				Twelve Months Ended
	January 1, 2022				January 2, 2021				October 2, 2021				January 1, 2022
Net income	$	1,126			$	472			$	3,060			$	3,714
Less: Interest income		(3	)			(2	)			(8	)			(9	)
Add: Interest expense		100				110				428				418
Add: Income tax expense		284				144				981				1,121
Add: Depreciation		236				229				934				941
Add: Amortization 4		62				66				261				257
EBITDA	$	1,805			$	1,019			$	5,656			$	6,442
Adjustments to EBITDA:
Less: Gain on sale of business	$	—			$	—			$	(784	)			(784	)
Add: China plant relocation charge 5		—				—				27				27
Add: Legal contingency accruals 6		—				320				626				306
(Less)/Add: Production facilities fire insurance proceeds, net of costs7		(45	)			(6	)			17				(22	)
Less: Defined benefit plan gains		—				—				(34	)			(34	)
Total Adjusted EBITDA	$	1,760			$	1,333			$	5,508			$	5,935
Total gross debt									$	9,348			$	9,364
Less: Cash and cash equivalents										(2,507	)			(2,956	)
Less: Short-term investments										—				—
Total net debt									$	6,841			$	6,408
Ratio Calculations:
Gross debt/EBITDA										1.7x				1.5x
Net debt/EBITDA										1.2x				1.0x
Gross debt/Adjusted EBITDA										1.7x				1.6x
Net debt/Adjusted EBITDA										1.2x				1.1x

⁴ _{Excludes the amortization of debt issuance and debt discount expense of $2 million for the three months ended January 1, 2022, $3 million for the three months ended January 2, 2021, $19 million for the fiscal year ended October 2, 2021, and $18 million for the twelve months ended January 1, 2022 as it is included in interest expense.}

⁵ _{Relates to a plant relocation from a government land expropriation and includes accelerated depreciation and team member related charges recognized as an increase of Cost of Sales.}

⁶ _{Legal contingency accruals included $320 million recognized as a reduction of Sales in the first quarter of fiscal 2021 and $545 million recognized as a reduction of Sales and $81 million recognized as an increase of Cost of Sales in fiscal 2021.}

⁷ _{Relates to fires at production facilities in Chicken in the fourth quarter of fiscal 2021 and Beef in the fourth quarter of fiscal 2019. Amount includes insurance proceeds, net of costs incurred, of $23 million recognized in Cost of Sales and $22 million net proceeds recognized in Other, net in the first quarter of fiscal 2022 and $23 million net expense recognized in Cost of Sales and $6 million net proceeds recognized in Other, net for fiscal 2021.}

EBITDA is defined as net income before interest, income taxes, depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA) represents the ratio of our debt, net of cash, cash equivalents and short-term investments, to EBITDA (and to Adjusted EBITDA). EBITDA, Adjusted EBITDA, net debt to EBITDA and net debt to Adjusted EBITDA are presented as supplemental financial measurements in the evaluation of our business. Adjusted EBITDA is a tool intended to assist our management and investors in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations on an ongoing basis.

We believe the presentation of these financial measures helps management and investors to assess our operating performance from period to period, including our ability to generate earnings sufficient to service our debt, enhances understanding of our financial performance and highlights operational trends. These measures are widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies; however, the measurements of EBITDA (and Adjusted EBITDA) and net debt to EBITDA (and to Adjusted EBITDA) may not be comparable to those of other companies, which may limit their usefulness as comparative measures. EBITDA (and Adjusted EBITDA) and net debt to EBITDA (and to Adjusted EBITDA) are not measures required by or calculated in accordance with GAAP and should not be considered as substitutes for net income or any other measure of financial performance reported in accordance with GAAP or as a measure of operating cash flow or liquidity. EBITDA (and Adjusted EBITDA) is a useful tool for assessing, but is not a reliable indicator of, our ability to generate cash to service our debt obligations because certain of the items added to net income to determine EBITDA (and Adjusted EBITDA) involve outlays of cash. As a result, actual cash available to service our debt obligations will be different from EBITDA (and Adjusted EBITDA). Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.

TYSON FOODS, INC.
EPS Reconciliations
(In millions, except per share data)
(Unaudited)

					First Quarter
					Pretax Impact								EPS Impact
						2022				2021				2022				2021
Reported net income per share attributable to Tyson (GAAP EPS)													$	3.07			$	1.28
Add: Legal contingency accrual 6					$	—			$	320				—				0.67
Less: Production facilities fire insurance proceeds, net of costs7					$	(45	)		$	(6	)			(0.10	)			(0.01	)
Less: Remeasurement of net deferred tax liabilities at lower enacted state tax rates					$	—			$	—				(0.10	)			—
Adjusted net income per share attributable to Tyson (Adjusted EPS)													$	2.87			$	1.94

Adjusted net income per share attributable to Tyson (Adjusted EPS) is presented as a supplementary measure of our financial performance that is not required by, or presented in accordance with, GAAP. We use Adjusted EPS as an internal performance measurement and as one criterion for evaluating our performance relative to that of our peers. We believe Adjusted EPS is meaningful to our investors to enhance their understanding of our financial performance and is frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS. Further, we believe that Adjusted EPS is a useful measure because it improves comparability of results of operations from period to period. Adjusted EPS should not be considered a substitute for net income per share attributable to Tyson or any other measure of financial performance reported in accordance with GAAP. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of Adjusted EPS may not be comparable to similarly titled measures reported by other companies.

TYSON FOODS, INC.
Operating Income (Loss) Reconciliation
(In millions)
(Unaudited)

Adjusted Operating Income
(for the first quarter ended January 1, 2022)
	Beef		Pork		Chicken			Prepared Foods		International/Other		Total
Reported operating income	$	956	$	164	$	140		$	186	$	9	$	1,455
Less: Production facilities fire insurance proceeds, net of costs7		—		—		(23	)		—		—		(23	)
Adjusted operating income	$	956	$	164	$	117		$	186	$	9	$	1,432

Adjusted Operating Income
(for the first quarter ended January 2, 2021)
	Beef		Pork		Chicken			Prepared Foods		International/Other		Total
Reported operating income (loss)	$	528	$	116	$	(216	)	$	266	$	11	$	705
Add: Legal contingency accrual6		—		—		320			—		—		320
Adjusted operating income	$	528	$	116	$	104		$	266	$	11	$	1,025

Adjusted operating income is presented as a supplementary measure of our operating performance that is not required by, or presented in accordance with, GAAP. We use adjusted operating income as an internal performance measurement and as one criterion for evaluating our performance relative to that of our peers. We believe adjusted operating income is meaningful to our investors to enhance their understanding of our operating performance and is frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report adjusted operating income. Further, we believe that adjusted operating income is a useful measure because it improves comparability of results of operations from period to period. Adjusted operating income should not be considered as a substitute for operating income (loss) or any other measure of operating performance reported in accordance with GAAP. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of adjusted operating income may not be comparable to similarly titled measures reported by other companies.

About Tyson Foods, Inc.
Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the Company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the Company had approximately 137,000 team members at October 2, 2021. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.

Conference Call Information and Other Selected Data
A conference call to discuss the Company's financial results will be held at 9 a.m. Eastern Monday, February 7, 2022. A link for the webcast of the conference call is available on the Tyson Investor Relations website at http://ir.tyson.com. The webcast also can be accessed by the following direct link: https://event.on24.com/wcc/r/3578688/776A66724A330AB0D97CEC70248EB449. For those who cannot participate at the scheduled time, a replay of the live webcast and the accompanying slides will be available at http://ir.tyson.com until Monday, March 7, 2022. A telephone replay will also be available until Monday, March 7, 2022, toll free at 1-877-344-7529, international toll 1-412-317-0088 or Canada toll free 855-669-9658. The replay access code is 3166566. Financial information, such as this news release, as well as other supplemental data, can be accessed from the Company's web site at http://ir.tyson.com.

Forward-Looking Statements
Certain information in this report constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2022, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt levels, return on invested capital, value-added product growth, capital expenditures, tax rates, access to foreign markets and dividend policy). These forward-looking statements are subject to a number of factors and uncertainties that could cause our actual results and experiences to differ materially from anticipated results and expectations expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) the COVID-19 global pandemic and associated responses thereto have had an adverse impact on our business and operations, and the extent that the COVID-19 pandemic continues to impact us will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, and public adoption rates of COVID-19 vaccines and their effectiveness against emerging variants of COVID-19, including the Delta and Omicron variants, and the speed and effectiveness of new vaccine and treatment developments and their deployment; (ii) the effectiveness of our financial excellence programs; (iii) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (iv) cyber incidents, security breaches or other disruptions of our information technology systems; (v) risks associated with our failure to consummate favorable acquisition transactions or integrate certain acquisitions' operations; (vi) the Tyson Limited Partnership’s ability to exercise significant control over the Company; (vii) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (viii) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (ix) outbreak of a livestock disease (such as African swine fever (ASF), avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an adverse effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (x) changes in consumer preference and diets and our ability to identify and react to consumer trends; (xi) effectiveness of advertising and marketing programs; (xii) significant marketing plan changes by large customers or loss of one or more large customers; (xiii) our ability to leverage brand value propositions; (xiv) changes in availability and relative costs of labor and contract farmers and our ability to maintain good relationships with team members, labor unions, contract farmers and independent producers providing us livestock; (xv) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (xvi) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws; (xvii) adverse results from litigation; (xviii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xix) impairment in the carrying value of our goodwill or indefinite life intangible assets; (xx) our participation in a multiemployer pension plan; (xxi) volatility in capital markets or interest rates; (xxii) risks associated with our commodity purchasing activities; (xxiii) the effect of, or changes in, general economic conditions; (xxiv) impacts on our operations caused by factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemics or extreme weather; (xxv) failure to maximize or assert our intellectual property rights; (xxvi) effects related to changes in tax rates, valuation of deferred tax assets and liabilities, or tax laws and their interpretation; (xxvii) the effectiveness of our internal control over financial reporting, including identification of material weaknesses; and (xxviii) the other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including those included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q.

Media Contact: Gary Mickelson, 479-290-6111 Investor Contact: Megan Britt, 479-236-4927

Source: Tyson Foods, Inc. Category: IR, Newsroom

FAQ

What were Tyson Foods' Q1 2022 earnings results?

Tyson Foods reported Q1 2022 sales of $12.93 billion, operating income of $1.46 billion, and net income of $1.12 billion.

How did Tyson Foods' GAAP EPS change in Q1 2022?

GAAP EPS for Q1 2022 increased by 140% to $3.07, compared to $1.28 in Q1 2021.

What is Tyson Foods' liquidity status as of January 2022?

Tyson Foods reported liquidity of $5.2 billion at January 1, 2022.

What challenges did Tyson Foods face in its beef segment?

The beef segment faced a 6.2% sales volume decrease attributed to labor and supply chain constraints.

What is Tyson Foods' outlook for fiscal 2022?

Tyson Foods expects sales between $49 billion and $51 billion and aims for a productivity savings of $300-$400 million in 2022.