Tyson Foods Reports Third Quarter 2024 Results
Tyson Foods (NYSE: TSN) reported strong Q3 2024 results, showing significant year-over-year improvement. Key highlights include:
- Sales of $13,353 million, up 1.6% from prior year
- GAAP operating income of $341 million, up $691 million
- Adjusted operating income of $491 million, up 174%
- GAAP EPS of $0.54, up $1.72
- Adjusted EPS of $0.87, up 480%
- Total Company adjusted operating margin of 3.7%
For the first nine months, Tyson reported sales of $39,744 million (up 0.5%) and adjusted operating income of $1,308 million (up 88%). The company's CEO, Donnie King, attributed the positive turnaround to disciplined actions and focus on fundamentals.
Tyson Foods (NYSE: TSN) ha riportato risultati solidi per il terzo trimestre del 2024, mostrando un significativo miglioramento rispetto all'anno precedente. I punti salienti includono:
- Vendite di 13.353 milioni di dollari, in aumento dell'1,6% rispetto all'anno precedente
- Reddito operativo GAAP di 341 milioni di dollari, in aumento di 691 milioni di dollari
- Reddito operativo rettificato di 491 milioni di dollari, in crescita del 174%
- EPS GAAP di 0,54 dollari, in aumento di 1,72 dollari
- EPS rettificato di 0,87 dollari, in crescita del 480%
- Margine operativo rettificato totale dell'azienda del 3,7%
Per i primi nove mesi, Tyson ha riportato vendite di 39.744 milioni di dollari (in aumento dello 0,5%) e un reddito operativo rettificato di 1.308 milioni di dollari (in aumento dell'88%). Il CEO dell'azienda, Donnie King, ha attribuito il positivo cambiamento a azioni disciplinate e a un focus sui fondamentali.
Tyson Foods (NYSE: TSN) reportó resultados sólidos para el tercer trimestre de 2024, mostrando una mejora significativa en comparación con el año anterior. Los aspectos más destacados incluyen:
- Ventas de $13,353 millones, un aumento del 1.6% respecto al año pasado
- Ingreso operativo GAAP de $341 millones, un aumento de $691 millones
- Ingreso operativo ajustado de $491 millones, un aumento del 174%
- EPS GAAP de $0.54, un aumento de $1.72
- EPS ajustado de $0.87, un aumento del 480%
- Margen operativo ajustado total de la compañía del 3.7%
En los primeros nueve meses, Tyson reportó ventas de $39,744 millones (un aumento del 0.5%) e ingreso operativo ajustado de $1,308 millones (un aumento del 88%). El CEO de la empresa, Donnie King, atribuyó el cambio positivo a acciones disciplinadas y un enfoque en los fundamentos.
타이슨 푸드(Tyson Foods, NYSE: TSN)는 2024년 3분기 강력한 실적을 보고하며 전년 대비 유의미한 개선을 보여주었습니다. 주요 내용은 다음과 같습니다:
- 매출 133억 5,300만 달러, 전년 대비 1.6% 증가
- GAAP 운영 수익 3억 4,100만 달러, 6억 9,100만 달러 증가
- 조정된 운영 수익 4억 9,100만 달러, 174% 증가
- GAAP 주당 순이익 0.54달러, 1.72달러 증가
- 조정된 주당 순이익 0.87달러, 480% 증가
- 총 회사 조정 운영 마진 3.7%
전년의 첫 아홉 달 동안 타이슨은 397억 4,400만 달러의 매출(0.5% 증가)과 13억 800만 달러의 조정 운영 수익(88% 증가)을 보고했습니다. 회사의 CEO인 도니 킹(Donnie King)은 긍정적인 전환을 규율 있는 행동과 근본에 대한 집중으로 설명했습니다.
Tyson Foods (NYSE: TSN) a publié de solides résultats pour le troisième trimestre 2024, montrant une amélioration significative par rapport à l'année précédente. Les points saillants comprennent :
- Ventes de 13,353 millions de dollars, en hausse de 1,6 % par rapport à l'année précédente
- Bénéfice opérationnel GAAP de 341 millions de dollars, en hausse de 691 millions de dollars
- Bénéfice opérationnel ajusté de 491 millions de dollars, en hausse de 174 %
- BPA GAAP de 0,54 USD, en hausse de 1,72 USD
- BPA ajusté de 0,87 USD, en hausse de 480 %
- Marge opérationnelle ajustée totale de l'entreprise de 3,7 %
Pour les neuf premiers mois, Tyson a annoncé des ventes de 39,744 millions de dollars (en hausse de 0,5 %) et un bénéfice opérationnel ajusté de 1,308 millions de dollars (en hausse de 88 %). Le PDG de l'entreprise, Donnie King, a attribué ce retour positif à des actions disciplinées et à une attention portée aux fondamentaux.
Tyson Foods (NYSE: TSN) berichtete über starke Ergebnisse im 3. Quartal 2024, die eine signifikante Verbesserung im Vergleich zum Vorjahr zeigen. Wichtige Höhepunkte sind:
- Umsatz von 13.353 Millionen US-Dollar, ein Anstieg von 1,6% im Vergleich zum Vorjahr
- GAAP-Betriebsgewinn von 341 Millionen US-Dollar, ein Anstieg um 691 Millionen US-Dollar
- Bereinigter Betriebsgewinn von 491 Millionen US-Dollar, ein Anstieg von 174%
- GAAP-EPS von 0,54 US-Dollar, ein Anstieg um 1,72 US-Dollar
- Bereinigtes EPS von 0,87 US-Dollar, ein Anstieg von 480%
- Gesamtunternehmensbereinigte Betriebsrendite von 3,7%
In den ersten neun Monaten berichtete Tyson von einem Umsatz von 39.744 Millionen US-Dollar (ein Anstieg von 0,5%) und einem bereinigten Betriebsgewinn von 1.308 Millionen US-Dollar (ein Anstieg von 88%). Der CEO des Unternehmens, Donnie King, führte die positive Wende auf disziplinierte Maßnahmen und einen Fokus auf die Grundlagen zurück.
- Q3 sales increased by 1.6% year-over-year to $13,353 million
- Q3 adjusted operating income surged 174% to $491 million
- Q3 adjusted EPS grew 480% to $0.87
- Nine-month adjusted operating income up 88% to $1,308 million
- Cash provided by operating activities increased 38% to $1,973 million
- Free cash flow improved by $1,224 million to $1,089 million
- Beef segment reported operating loss of $69 million in Q3
- Pork segment reported operating loss of $62 million in Q3
- Chicken segment sales decreased by 3.7% in Q3
- International/Other segment sales declined by 14.6% in Q3
Insights
Tyson Foods' Q3 2024 results show significant improvement in profitability. Sales increased by 1.6% to
Key positives include improved operational efficiency and strong free cash flow generation. The Chicken segment's performance was particularly impressive, with a 7.5% adjusted operating margin, up from -1.5% in Q3 2023. However, the Beef segment continues to face challenges, reporting an operating loss.
Tyson's focus on disciplined actions and fundamentals appears to be paying off, but investors should monitor the Beef segment's recovery and potential market headwinds. The company's liquidity position remains strong at
Tyson's Q3 results reflect a positive shift in the protein market dynamics. The 1.1% increase in sales volume suggests improving demand across most segments. Notably, the Pork segment saw a 12.6% average price increase, indicating potential supply constraints or strong demand.
The Chicken segment's turnaround is particularly significant, as it's a key growth area for Tyson. The 6% operating margin in Chicken demonstrates successful cost management and pricing strategies. However, the slight volume decline (-0.4%) in Chicken warrants attention, as it could impact future growth if the trend continues.
The Prepared Foods segment maintains strong profitability with an 8.3% operating margin, showcasing Tyson's strength in value-added products. This segment's performance is important for long-term value creation and mitigating commodity price volatility.
Tyson's financial risk profile has improved significantly. The 38% increase in cash provided by operating activities to
The company's liquidity position of
Tyson's ability to improve adjusted operating margins across most segments demonstrates effective cost management and pricing power. This operational leverage bodes well for future profitability, especially if volume growth can be sustained or accelerated.
Continued Operational Momentum Drives Year-Over-Year Profitability Improvement
SPRINGDALE, Ark., Aug. 05, 2024 (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, reported the following results:
| (in millions, except per share data) | Third Quarter | Nine Months Ended | |||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Sales | $ | 13,353 | $ | 13,140 | $ | 39,744 | $ | 39,533 | |||||
| Operating Income (Loss) | $ | 341 | $ | (350 | ) | $ | 884 | $ | 68 | ||||
| Adjusted1Operating Income (non-GAAP) | $ | 491 | $ | 179 | $ | 1,308 | $ | 697 | |||||
| Net Income (Loss) Per Share Attributable to Tyson | $ | 0.54 | $ | (1.18 | ) | $ | 1.25 | $ | (0.56 | ) | |||
| Adjusted1Net Income (Loss) Per Share Attributable to Tyson (non-GAAP) | $ | 0.87 | $ | 0.15 | $ | 2.18 | $ | 0.97 | |||||
1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this table and throughout this earnings release, adjusted operating income (loss) and adjusted net income (loss) 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 Nine Months Highlights
- Sales of
$39,744 million , up0.5% from prior year - GAAP operating income of
$884 million , up$816 million from prior year - Adjusted operating income of
$1,308 million , up88% from prior year - GAAP EPS of
$1.25 , up$1.81 from prior year - Adjusted EPS of
$2.18 , up125% from prior year - Total Company GAAP operating margin of
2.2% - Total Company adjusted operating margin (non-GAAP) of
3.3% - Cash provided by operating activities of
$1,973 million, up38% from prior year - Free cash flow (non-GAAP) of
$1,089 million , up$1,224 million from prior year
Third Quarter Highlights
- Sales of
$13,353 million , up1.6% from prior year - GAAP operating income of
$341 million , up$691 million from prior year - Adjusted operating income of
$491 million , up174% from prior year - GAAP EPS of
$0.54 , up$1.72 from prior year - Adjusted EPS of
$0.87 , up480% from prior year - Total Company GAAP operating margin of
2.6% - Total Company adjusted operating margin (non-GAAP) of
3.7% - Liquidity of approximately
$4.8 billion as of June 29, 2024
"Our disciplined actions and focus on the fundamentals have resulted in a positive turnaround of our business," stated Donnie King, President & CEO of Tyson Foods. "In Q3, we delivered the highest adjusted operating income in the last seven quarters while also generating strong free cash flow. Looking ahead, we will continue to strive to be best-in-class operators, drive efficiencies, value-up our portfolio, win with customers and consumers, and be disciplined in our capital deployment."
| SEGMENT RESULTS (in millions) | ||||||||||||||||||||
| Sales | ||||||||||||||||||||
| (for the third quarter and nine months ended June 29, 2024, and July 1, 2023) | ||||||||||||||||||||
| Third Quarter | Nine Months Ended | |||||||||||||||||||
| Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
| 2024 | 2023 | Change | Change2 | 2024 | 2023 | Change | Change2 | |||||||||||||
| Beef | $ | 5,241 | $ | 4,956 | 4.4 | % | 1.4 | % | $ | 15,218 | $ | 14,296 | 0.9 | % | 5.5 | % | ||||
| Pork | 1,462 | 1,324 | 1.2 | % | 12.6 | % | 4,465 | 4,274 | 4.0 | % | 1.5 | % | ||||||||
| Chicken | 4,076 | 4,212 | (0.4) | % | (3.7) | % | 12,174 | 12,905 | (2.7) | % | (3.2) | % | ||||||||
| Prepared Foods | 2,432 | 2,383 | 2.0 | % | 0.1 | % | 7,379 | 7,343 | 1.7 | % | (1.2) | % | ||||||||
| International/Other | 582 | 633 | 6.5 | % | (14.6) | % | 1,744 | 1,879 | 3.9 | % | (11.1) | % | ||||||||
| Intersegment Sales | (440 | ) | (368 | ) | n/a | n/a | (1,236 | ) | (1,164 | ) | n/a | n/a | ||||||||
| Total | $ | 13,353 | $ | 13,140 | 1.1 | % | 0.6 | % | $ | 39,744 | $ | 39,533 | (0.1) | % | 0.7 | % | ||||
| Operating Income (Loss) | ||||||||||||||||||||
| (for the third quarter and nine months ended June 29, 2024, and July 1, 2023) | ||||||||||||||||||||
| Third Quarter | Nine Months Ended | |||||||||||||||||||
| Operating Margin | Operating Margin | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Beef | $ | (69 | ) | $ | 66 | (1.3) | % | 1.3 | % | $ | (310 | ) | $ | 232 | (2.0) | % | 1.6 | % | ||
| Pork | (62 | ) | (74 | ) | (4.2) | % | (5.6) | % | (24 | ) | (128 | ) | (0.5) | % | (3.0) | % | ||||
| Chicken | 244 | (314 | ) | 6.0 | % | (7.5) | % | 579 | (503 | ) | 4.8 | % | (3.9) | % | ||||||
| Prepared Foods | 203 | 206 | 8.3 | % | 8.6 | % | 676 | 705 | 9.2 | % | 9.6 | % | ||||||||
| International/Other | 25 | (234 | ) | n/a | n/a | (37 | ) | (238 | ) | n/a | n/a | |||||||||
| Total | $ | 341 | $ | (350 | ) | 2.6 | % | (2.7) | % | $ | 884 | $ | 68 | 2.2 | % | 0.2 | % | |||
| ADJUSTED SEGMENT RESULTS (in millions) | ||||||||||||||||||||
| Adjusted Operating Income (Loss) (Non-GAAP)1 | ||||||||||||||||||||
| (for the third quarter and nine months ended June 29, 2024, and July 1, 2023) | ||||||||||||||||||||
| Third Quarter | Nine Months Ended | |||||||||||||||||||
| Adjusted Operating Margin (Non-GAAP) | Adjusted Operating Margin (Non-GAAP) | |||||||||||||||||||
| 2024 | 2023 | 20242 | 20232 | 2024 | 2023 | 20242 | 20232 | |||||||||||||
| Beef | $ | (69 | ) | $ | 79 | (1.3) | % | 1.6 | % | $ | (220 | ) | $ | 216 | (1.4) | % | 1.5 | % | ||
| Pork | 22 | (70 | ) | 1.5 | % | (5.3) | % | 123 | (120 | ) | 2.7 | % | (2.8) | % | ||||||
| Chicken | 307 | (63 | ) | 7.5 | % | (1.5) | % | 659 | (152 | ) | 5.4 | % | (1.2) | % | ||||||
| Prepared Foods | 203 | 220 | 8.3 | % | 9.2 | % | 700 | 738 | 9.5 | % | 10.1 | % | ||||||||
| International/Other | 28 | 13 | n/a | n/a | 46 | 15 | n/a | n/a | ||||||||||||
| Total | $ | 491 | $ | 179 | 3.7 | % | 1.4 | % | $ | 1,308 | $ | 697 | 3.3 | % | 1.8 | % | ||||
2 Average Price Change and Adjusted Operating Margin (Non-GAAP) exclude
OUTLOOK
For fiscal 2024, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly compared to fiscal 2023 levels. The following is a summary of the updated outlook for each of our segments, as well as an outlook for revenue, capital expenditures, net interest expense, liquidity and tax rate for fiscal 2024. Certain of the outlook numbers include adjusted operating income (loss) (a non-GAAP metric) for each segment. The Company is not able to reconcile its full-year fiscal 2024 projected adjusted results to its fiscal 2024 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 and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating income (loss) should not be considered a substitute for operating income (loss) 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.
Beef
USDA projects domestic production will decrease approximately
Pork
USDA projects domestic production will increase approximately
Chicken
USDA projects chicken production will be flat in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of
Prepared Foods
We anticipate adjusted operating income of
International/Other
We anticipate improved results from our foreign operations in fiscal 2024 on an adjusted basis.
Total Company
We anticipate total company adjusted operating income of
Revenue
We expect sales to be relatively flat in fiscal 2024 as compared to fiscal 2023.
Capital Expenditures
We expect capital expenditures between
Net Interest Expense
We expect net interest expense to approximate
Liquidity
We expect total liquidity, which was
Tax Rate
We currently expect our adjusted effective tax rate to be 23
| TYSON FOODS, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | ||||||||||||
| Sales | $ | 13,353 | $ | 13,140 | $ | 39,744 | $ | 39,533 | |||||||
| Cost of Sales | 12,475 | 12,463 | 37,177 | 37,361 | |||||||||||
| Gross Profit | 878 | 677 | 2,567 | 2,172 | |||||||||||
| Selling, General and Administrative | 537 | 579 | 1,683 | 1,656 | |||||||||||
| Goodwill Impairment | — | 448 | — | 448 | |||||||||||
| Operating Income (Loss) | 341 | (350 | ) | 884 | 68 | ||||||||||
| Other (Income) Expense: | |||||||||||||||
| Interest income | (36 | ) | (6 | ) | (60 | ) | (22 | ) | |||||||
| Interest expense | 135 | 89 | 351 | 262 | |||||||||||
| Other, net | (11 | ) | (7 | ) | (24 | ) | (50 | ) | |||||||
| Total Other (Income) Expense | 88 | 76 | 267 | 190 | |||||||||||
| Income (Loss) before Income Taxes | 253 | (426 | ) | 617 | (122 | ) | |||||||||
| Income Tax Expense | 57 | 9 | 159 | 84 | |||||||||||
| Net Income (Loss) | 196 | (435 | ) | 458 | (206 | ) | |||||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | 5 | (18 | ) | 15 | (8 | ) | |||||||||
| Net Income (Loss) Attributable to Tyson | $ | 191 | $ | (417 | ) | $ | 443 | $ | (198 | ) | |||||
| Net Income (Loss) Per Share Attributable to Tyson: | |||||||||||||||
| Class A Basic | $ | 0.55 | $ | (1.18 | ) | $ | 1.28 | $ | (0.56 | ) | |||||
| Class B Basic | $ | 0.49 | $ | (1.08 | ) | $ | 1.14 | $ | (0.51 | ) | |||||
| Diluted | $ | 0.54 | $ | (1.18 | ) | $ | 1.25 | $ | (0.56 | ) | |||||
| Dividends Declared Per Share: | |||||||||||||||
| Class A | $ | 0.490 | $ | 0.480 | $ | 1.480 | $ | 1.460 | |||||||
| Class B | $ | 0.441 | $ | 0.432 | $ | 1.332 | $ | 1.314 | |||||||
| Sales Growth | 1.6 | % | 0.5 | % | |||||||||||
| Margins: (Percent of Sales) | |||||||||||||||
| Gross Profit | 6.6 | % | 5.2 | % | 6.5 | % | 5.5 | % | |||||||
| Operating Income (Loss) | 2.6 | % | (2.7) | % | 2.2 | % | 0.2 | % | |||||||
| Net Income (Loss) Attributable to Tyson | 1.4 | % | (3.2) | % | 1.1 | % | (0.5) | % | |||||||
| Effective Tax Rate3 | 22.9 | % | (1.8) | % | 25.9 | % | (67.9) | % | |||||||
3 The effective tax rate for the three and nine months ended July 1, 2023 was impacted by a
| TYSON FOODS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In millions) (Unaudited) | |||||
| June 29, 2024 | September 30, 2023 | ||||
| Assets | |||||
| Current Assets: | |||||
| Cash and cash equivalents | $ | 2,569 | $ | 573 | |
| Accounts receivable, net | 2,389 | 2,476 | |||
| Inventories | 5,033 | 5,328 | |||
| Other current assets | 581 | 345 | |||
| Total Current Assets | 10,572 | 8,722 | |||
| Net Property, Plant and Equipment | 9,368 | 9,634 | |||
| Goodwill | 9,801 | 9,878 | |||
| Intangible Assets, net | 5,928 | 6,098 | |||
| Other Assets | 2,063 | 1,919 | |||
| Total Assets | $ | 37,732 | $ | 36,251 | |
| Liabilities and Shareholders’ Equity | |||||
| Current Liabilities: | |||||
| Current debt | $ | 1,320 | $ | 1,895 | |
| Accounts payable | 2,291 | 2,594 | |||
| Other current liabilities | 2,199 | 2,010 | |||
| Total Current Liabilities | 5,810 | 6,499 | |||
| Long-Term Debt | 9,701 | 7,611 | |||
| Deferred Income Taxes | 2,318 | 2,308 | |||
| Other Liabilities | 1,701 | 1,578 | |||
| Total Tyson Shareholders’ Equity | 18,076 | 18,133 | |||
| Noncontrolling Interests | 126 | 122 | |||
| Total Shareholders’ Equity | 18,202 | 18,255 | |||
| Total Liabilities and Shareholders’ Equity | $ | 37,732 | $ | 36,251 | |
| TYSON FOODS, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||||||
| Nine Months Ended | |||||||
| June 29, 2024 | July 1, 2023 | ||||||
| Cash Flows From Operating Activities: | |||||||
| Net income (loss) | $ | 458 | $ | (206 | ) | ||
| Depreciation and amortization | 1,082 | 943 | |||||
| Deferred income taxes | 6 | (54 | ) | ||||
| Impairment of goodwill | — | 448 | |||||
| Other, net | 162 | 200 | |||||
| Net changes in operating assets and liabilities | 265 | 98 | |||||
| Cash Provided by Operating Activities | 1,973 | 1,429 | |||||
| Cash Flows From Investing Activities: | |||||||
| Additions to property, plant and equipment | (884 | ) | (1,564 | ) | |||
| Purchases of marketable securities | (23 | ) | (21 | ) | |||
| Proceeds from sale of marketable securities | 21 | 20 | |||||
| Acquisition, net of cash acquired | — | (262 | ) | ||||
| Acquisition of equity investments | (28 | ) | (50 | ) | |||
| Other, net | 60 | 5 | |||||
| Cash Used for Investing Activities | (854 | ) | (1,872 | ) | |||
| Cash Flows From Financing Activities: | |||||||
| Proceeds from issuance of debt | 2,391 | 1,117 | |||||
| Payments on debt | (347 | ) | (175 | ) | |||
| Proceeds from issuance of commercial paper | 1,649 | 7,015 | |||||
| Repayments of commercial paper | (2,240 | ) | (7,015 | ) | |||
| Purchases of Tyson Class A common stock | (44 | ) | (343 | ) | |||
| Dividends | (513 | ) | (503 | ) | |||
| Stock options exercised | 9 | 10 | |||||
| Other, net | (22 | ) | (5 | ) | |||
| Cash Provided by Financing Activities | 883 | 101 | |||||
| Effect of Exchange Rate Changes on Cash | (6 | ) | 10 | ||||
| Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | 1,996 | (332 | ) | ||||
| Cash and Cash Equivalents and Restricted Cash at Beginning of Year | 573 | 1,031 | |||||
| Cash and Cash Equivalents and Restricted Cash at End of Period | 2,569 | 699 | |||||
| Less: Restricted Cash at End of Period | — | — | |||||
| Cash and Cash Equivalents at End of Period | $ | 2,569 | $ | 699 | |||
Non-GAAP Financial Measures
Adjusted Operating Income (Loss), Adjusted Income (Loss) before Income Taxes, Adjusted Income Tax Expense (Benefit), Adjusted Net Income (Loss) Attributable to Tyson and Adjusted EPS, EBITDA, Adjusted EBITDA, net debt to EBITDA, net debt to Adjusted EBITDA and Free Cash Flow are presented as supplemental financial measures in the evaluation of our business that are not required by, or presented in accordance with GAAP. The non-GAAP financial measures are tools 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. These non-GAAP measures should not be a substitute for their comparable GAAP financial measures. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. We believe the presentation of these non-GAAP 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. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness of comparative measures.
Definitions
EBITDA is defined as net income (loss) before interest, income taxes (benefits), 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, Adjusted Operating Income (Loss), Adjusted Income (Loss) before Income Taxes, Adjusted Income Tax Expense (Benefit), Adjusted Net Income (Loss) Attributable to Tyson and Adjusted EPS are defined as EBITDA, Operating Income (Loss), Income (Loss) before Income Taxes, Income Tax Expense (Benefit), Net Income (Loss) Attributable to Tyson and diluted earnings per share, respectively, excluding the impacts of any items that management believes do not directly reflect our core operations on an ongoing basis.
Free Cash Flow is defined as Cash Provided by Operating Activities minus payments for Property, Plant and Equipment.
| TYSON FOODS, INC. GAAP Results to Non-GAAP Results Reconciliations (In millions, except per share data) (Unaudited) | ||||||||||||||||||||||
| Results for the third quarter ended June 29, 2024 | ||||||||||||||||||||||
| Sales | Cost of Sales | Selling, General and Administrative | Goodwill Impairment | Operating Income (Loss) | Other (Income) Expense | Income (Loss) before Income Taxes | Income Tax Expense (Benefit) | Net Income (Loss) Attributable to Tyson | EPS Impact | |||||||||||||
| GAAP Results | $ | 341 | $ | 253 | $ | 57 | $ | 191 | $ | 0.54 | ||||||||||||
| Production facility fire costs, net of insurance proceeds6 | — | 5 | — | — | 5 | — | 5 | 1 | 4 | 0.01 | ||||||||||||
| Plant closures | — | 41 | — | — | 41 | — | 41 | 8 | 33 | 0.09 | ||||||||||||
| Legal contingency accrual | 45 | 56 | — | — | 101 | — | 101 | 23 | 78 | 0.22 | ||||||||||||
| The Netherlands facility7 | — | 3 | — | — | 3 | — | 3 | — | 3 | 0.01 | ||||||||||||
| Adjusted Non-GAAP Results | $ | 491 | $ | 403 | $ | 89 | $ | 309 | $ | 0.87 | ||||||||||||
| Results for the third quarter ended July 1, 2023 | ||||||||||||||||||||||
| Sales | Cost of Sales | Selling, General and Administrative | Goodwill Impairment | Operating Income (Loss) | Other (Income) Expense | Income (Loss) before Income Taxes | Income Tax Expense (Benefit) | Net Income (Loss) Attributable to Tyson | EPS Impact | |||||||||||||
| GAAP Results | $ | (350 | ) | $ | (426 | ) | $ | 9 | $ | (417 | ) | $ | (1.18 | ) | ||||||||
| Production facilities fire insurance proceeds, net of costs6 | — | (22 | ) | — | — | (22 | ) | (22 | ) | (44 | ) | (11 | ) | (33 | ) | (0.10 | ) | |||||
| Legal contingency accruals | 38 | — | — | — | 38 | — | 38 | 9 | 29 | 0.08 | ||||||||||||
| Restructuring and related charges | — | 19 | 31 | — | 50 | — | 50 | 12 | 38 | 0.11 | ||||||||||||
| Goodwill Impairment4 | — | — | — | 448 | 448 | — | 448 | — | 424 | 1.20 | ||||||||||||
| Plant closures | — | 15 | — | — | 15 | — | 15 | 3 | 12 | 0.04 | ||||||||||||
| Adjusted Non-GAAP Results | $ | 179 | $ | 81 | $ | 22 | $ | 53 | $ | 0.15 | ||||||||||||
| Results for the nine months ended June 29, 2024 | ||||||||||||||||||||||
| Sales | Cost of Sales | Selling, General and Administrative | Goodwill Impairment | Operating Income (Loss) | Other (Income) Expense | Income (Loss) before Income Taxes | Income Tax Expense (Benefit) | Net Income (Loss) Attributable to Tyson | EPS Impact | |||||||||||||
| GAAP Results | $ | 884 | $ | 617 | $ | 159 | $ | 443 | $ | 1.25 | ||||||||||||
| Production facility fire insurance proceeds, net of costs6 | — | (19 | ) | — | — | (19 | ) | (3 | ) | (22 | ) | (5 | ) | (17 | ) | (0.05 | ) | |||||
| Restructuring and related charges | — | — | 31 | — | 31 | — | 31 | 8 | 23 | 0.06 | ||||||||||||
| Plant closures | — | 155 | — | — | 155 | — | 155 | 46 | 109 | 0.31 | ||||||||||||
| Legal contingency accruals | 45 | 129 | — | — | 174 | — | 174 | 41 | 133 | 0.38 | ||||||||||||
| The Netherlands facility7 | — | 83 | — | — | 83 | — | 83 | — | 83 | 0.23 | ||||||||||||
| Adjusted Non-GAAP Results | $ | 1,308 | $ | 1,038 | $ | 249 | $ | 774 | $ | 2.18 | ||||||||||||
| Results for the nine months ended July 1, 2023 | ||||||||||||||||||||||
| Sales | Cost of Sales | Selling, General and Administrative | Goodwill Impairment | Operating Income (Loss) | Other (Income) Expense | Income (Loss) before Income Taxes | Income Tax Expense (Benefit) | Net Income (Loss) Attributable to Tyson | EPS Impact | |||||||||||||
| GAAP Results | $ | 68 | $ | (122 | ) | $ | 84 | $ | (198 | ) | $ | (0.56 | ) | |||||||||
| Production facilities fire insurance proceeds, net of costs6 | — | (57 | ) | — | — | (57 | ) | (22 | ) | (79 | ) | (19 | ) | (60 | ) | (0.17 | ) | |||||
| Legal contingency accruals | 38 | — | — | — | 38 | — | 38 | 9 | 29 | 0.08 | ||||||||||||
| Restructuring and related charges | — | 23 | 70 | 93 | — | 93 | 22 | 71 | 0.20 | |||||||||||||
| Goodwill Impairment4 | — | — | — | 448 | 448 | — | 448 | — | 424 | 1.20 | ||||||||||||
| Plant closures | — | 107 | — | — | 107 | — | 107 | 27 | 80 | 0.22 | ||||||||||||
| Adjusted Non-GAAP Results | $ | 697 | $ | 485 | $ | 123 | $ | 346 | $ | 0.97 | ||||||||||||
4 Goodwill impairment is non-deductible for income tax purposes and the EPS impact is net of
| TYSON FOODS, INC. Adjusted Operating Income (Loss) Non-GAAP Reconciliations (In millions) (Unaudited) | ||||||||||||||
| Adjusted Operating Income (Loss) | ||||||||||||||
| (for the third quarter ended June 29, 2024) | ||||||||||||||
| Beef | Pork | Chicken | Prepared Foods | International /Other | Total | |||||||||
| Reported operating income (loss) | $ | (69 | ) | $ | (62 | ) | $ | 244 | $ | 203 | $ | 25 | $ | 341 |
| Add: Production facility fire costs, net of insurance proceeds6 | — | — | 5 | — | — | 5 | ||||||||
| Add: Plant closures | — | 39 | 2 | — | — | 41 | ||||||||
| Add: Legal contingency accruals | — | 45 | 56 | — | — | 101 | ||||||||
| Add: the Netherlands facility7 | — | — | — | — | 3 | 3 | ||||||||
| Adjusted operating income (loss) | $ | (69 | ) | $ | 22 | $ | 307 | $ | 203 | $ | 28 | $ | 491 | |
| Adjusted Operating Income (Loss) | ||||||||||||||||
| (for the third quarter ended July 1, 2023) | ||||||||||||||||
| Beef | Pork | Chicken | Prepared Foods | International /Other | Total | |||||||||||
| Reported operating income (loss) | $ | 66 | $ | (74 | ) | $ | (314 | ) | $ | 206 | $ | (234 | ) | $ | (350 | ) |
| Less: Production facility fire insurance proceeds, net of costs6 | — | — | (22 | ) | — | — | (22 | ) | ||||||||
| Add: Restructuring and related charges | 13 | 4 | 10 | 14 | 9 | 50 | ||||||||||
| Add: Plant closures | — | — | 15 | — | — | 15 | ||||||||||
| Add: Legal contingency accrual | — | — | 38 | — | — | 38 | ||||||||||
| Add: Goodwill Impairment | — | — | 210 | — | 238 | 448 | ||||||||||
| Adjusted operating income (loss) | $ | 79 | $ | (70 | ) | $ | (63 | ) | $ | 220 | $ | 13 | $ | 179 | ||
| Adjusted Operating Income (Loss) | |||||||||||||||||
| (for the nine months ended June 29, 2024) | |||||||||||||||||
| Beef | Pork | Chicken | Prepared Foods | International /Other | Total | ||||||||||||
| Reported operating income (loss) | $ | (310 | ) | $ | (24 | ) | $ | 579 | $ | 676 | $ | (37 | ) | $ | 884 | ||
| Less: Production facility fire insurance proceeds, net of costs6 | — | — | (19 | ) | — | — | (19 | ) | |||||||||
| Add: Restructuring and related charges | 4 | 1 | 2 | 24 | — | 31 | |||||||||||
| Add: Plant closures | 41 | 73 | 41 | — | — | 155 | |||||||||||
| Add: Legal contingency accruals | 45 | 73 | 56 | — | — | 174 | |||||||||||
| Add: the Netherlands facility7 | — | — | — | — | 83 | 83 | |||||||||||
| Adjusted operating income (loss) | $ | (220 | ) | $ | 123 | $ | 659 | $ | 700 | $ | 46 | $ | 1,308 | ||||
| Adjusted Operating Income (Loss) | |||||||||||||||||
| (for the nine months ended July 1, 2023) | |||||||||||||||||
| Beef | Pork | Chicken | Prepared Foods | International /Other | Total | ||||||||||||
| Reported operating income (loss) | $ | 232 | $ | (128 | ) | $ | (503 | ) | $ | 705 | $ | (238 | ) | $ | 68 | ||
| Less: Production facility fire insurance proceeds, net of costs6 | (42 | ) | — | (15 | ) | — | — | (57 | ) | ||||||||
| Add: Restructuring and related charges | 26 | 8 | 11 | 33 | 15 | 93 | |||||||||||
| Add: Plant closures | — | — | 107 | — | — | 107 | |||||||||||
| Add: Legal contingency accrual | — | — | 38 | — | — | 38 | |||||||||||
| Add: Goodwill Impairment | — | — | 210 | — | 238 | 448 | |||||||||||
| Adjusted operating income (loss) | $ | 216 | $ | (120 | ) | $ | (152 | ) | $ | 738 | $ | 15 | $ | 697 | |||
| TYSON FOODS, INC. EBITDA and Adjusted EBITDA Non-GAAP Reconciliations (In millions) (Unaudited) | |||||||||||||||
| Nine Months Ended | Fiscal Year Ended | Twelve Months Ended | |||||||||||||
| June 29, 2024 | July 1, 2023 | September 30, 2023 | June 29, 2024 | ||||||||||||
| Net income (loss) | $ | 458 | $ | (206 | ) | $ | (649 | ) | $ | 15 | |||||
| Less: Interest income | (60 | ) | (22 | ) | (30 | ) | (68 | ) | |||||||
| Add: Interest expense | 351 | 262 | 355 | 444 | |||||||||||
| Add/(Less): Income tax expense (benefit) | 159 | 84 | (29 | ) | 46 | ||||||||||
| Add: Depreciation | 902 | 762 | 1,100 | 1,240 | |||||||||||
| Add: Amortization5 | 171 | 174 | 229 | 226 | |||||||||||
| EBITDA | $ | 1,981 | $ | 1,054 | $ | 976 | $ | 1,903 | |||||||
| Adjustments to EBITDA: | |||||||||||||||
| Less: Production facilities fire insurance proceeds, net of costs6 | $ | (22 | ) | $ | (79 | ) | $ | (75 | ) | $ | (18 | ) | |||
| Add: Restructuring and related charges | 31 | 93 | 124 | 62 | |||||||||||
| Add: Plant closures | 155 | 107 | 322 | 370 | |||||||||||
| Add: Legal contingency accruals | 174 | 38 | 156 | 292 | |||||||||||
| Add: The Netherlands facility7 | 83 | — | — | 83 | |||||||||||
| Add: Goodwill impairment | — | 448 | 781 | 333 | |||||||||||
| Less: China plant relocation remuneration | — | — | (19 | ) | (19 | ) | |||||||||
| Add: Product line discontinuation | — | — | 17 | 17 | |||||||||||
| Less: Depreciation included in EBITDA adjustments8 | (127 | ) | (38 | ) | (133 | ) | (222 | ) | |||||||
| Total Adjusted EBITDA | $ | 2,275 | $ | 1,623 | $ | 2,149 | $ | 2,801 | |||||||
| Total gross debt | $ | 9,506 | $ | 11,021 | |||||||||||
| Less: Cash and cash equivalents | (573 | ) | (2,569 | ) | |||||||||||
| Less: Short-term investments | (15 | ) | (13 | ) | |||||||||||
| Total net debt | $ | 8,918 | $ | 8,439 | |||||||||||
| Ratio Calculations: | |||||||||||||||
| Gross debt/EBITDA | 9.7x | 5.8x | |||||||||||||
| Net debt/EBITDA | 9.1x | 4.4x | |||||||||||||
| Gross debt/Adjusted EBITDA | 4.4x | 3.9x | |||||||||||||
| Net debt/Adjusted EBITDA | 4.1x | 3.0x | |||||||||||||
5 Excludes the amortization of debt issuance and debt discount expense of
6 Relates to fires at production facilities in Chicken in the fourth quarter of fiscal 2021 and Beef in the fourth quarter of fiscal 2019.
7 Relates to a fire at our production facility in the Netherlands in the first quarter of fiscal 2024 and subsequent decision to sell the facility.
8 Removal of accelerated depreciation of
| TYSON FOODS, INC. Free Cash Flow Non-GAAP Reconciliation (In millions) (Unaudited) | |||||||
| Nine Months Ended | |||||||
| June 29, 2024 | July 1, 2023 | ||||||
| Cash Provided by Operating Activities | $ | 1,973 | $ | 1,429 | |||
| Additions to property, plant and equipment | (884 | ) | (1,564 | ) | |||
| Free cash flow | $ | 1,089 | $ | (135 | ) | ||
About Tyson Foods, Inc.
Tyson Foods, Inc. (NYSE: TSN) is a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The Company is unified by this purpose: Tyson Foods. We Feed the World Like Family™ and has a broad portfolio of iconic products and brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells® and ibp®. Tyson Foods is dedicated to bringing high-quality food to every table in the world, safely, sustainably, and affordably, now and for future generations. Headquartered in Springdale, Arkansas, the company had approximately 139,000 team members on September 30, 2023. 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, August 5, 2024. A link for the webcast of the conference call is available on the Tyson Investor Relations website at https://ir.tyson.com. The webcast also can be accessed by the following direct link: https://events.q4inc.com/attendee/293448139. For those who cannot participate at the scheduled time, a replay of the live webcast and the accompanying slides will be available at https://ir.tyson.com. A telephone replay will also be available until September 5, 2024, 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 5696640. Financial information, such as this news release, as well as other supplemental data, can be accessed from the Company's web site at https://ir.tyson.com.
Forward-Looking Statements
Certain information in this release 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 2024, 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) global pandemics have had, and may in the future have, an adverse impact on our business and operations; (ii) the effectiveness of restructuring or financial excellence programs; (iii) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (iv) cyberattacks, other 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 conduct our operations; (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, including as a result of our relocation of certain corporate team members to our world headquarters in Springdale, Arkansas; (xv) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (xvi) the effect of climate change and any legal or regulatory response thereto; (xvii) 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; (xviii) adverse results from litigation; (xix) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xx) impairment in the carrying value of our goodwill or indefinite life intangible assets; (xxi) our participation in a multiemployer pension plan; (xxii) volatility in capital markets or interest rates; (xxiii) risks associated with our commodity purchasing activities; (xxiv) the effect of, or changes in, general economic conditions; (xxv) impacts on our operations caused by factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemics, armed conflicts or extreme weather; (xxvi) failure to maximize or assert our intellectual property rights; (xxvii) effects related to changes in tax rates, valuation of deferred tax assets and liabilities, or tax laws and their interpretation; 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: Laura Burns, 479-713-9890 Investor Contact: Sean Cornett, 479-466-0401 | Source: Tyson Foods, Inc. Category: IR, Newsroom |
FAQ
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