16 November 2023
Meatpacker and hide processor Tyson Foods has reported its financial results for the fourth quarter and full 2023 fiscal year, writes ILM.
The company brought in sales of US$13.35 billion in the fourth quarter, down by 2.8% year-on-year. Sales for beef alone were US$5 billion in the period, down by 3.5%, while by volume they fell by 6.7%, but the average price was up by 10.2%.
The company achieved adjusted operating income of US$236 million in the quarter, down by 71% from the previous year, while operating income for beef was a loss of US$323 million.
For the full 2023 fiscal year, sales were down by 0.8% year-on-year to US$52.9 billion while beef was down 2.66% to US$19.33 billion with a volume decline of 3.1% and an average price up by just 0.4%.
Adjusted operating income for the full financial year was down by 79% to US$933 million, with a loss of US$91 million for beef alone.
Looking forward, the USDA indicates that domestic protein production should decline slightly in fiscal 2023, while beef will drop by around 5% year-on-year. Tyson expects an operating loss of US$400 million for beef at worst, and at best will break even.
President and CEO Donnie King said: “While economic headwinds persist, we are moving in the right direction and managing what we can control. The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”