Tyson Foods, Inc. has recently released its 10-Q report, providing an in-depth look at its financial condition and results of operations. The company, founded in 1935, operates as a global food company with a focus on the Beef, Pork, Chicken, and Prepared Foods segments. Some of its well-known brands include Tyson, Jimmy Dean, Hillshire Farm, Ball Park, and Aidells. The report discusses the company's sales, operating income, market environment, margins, and strategy.
The report states that in the third quarter of fiscal 2024, Tyson Foods recorded operating income of $341 million, a significant improvement from an operating loss of $350 million in the same period of fiscal 2023. The increase in operating income was primarily driven by higher operating income in the Chicken segment and International/Other, partially offset by lower operating income in the Beef segment. For the first nine months of fiscal 2024, the company reported operating income of $884 million, compared to $68 million for the same period in fiscal 2023.
The market environment for Tyson Foods has been influenced by various factors. According to the United States Department of Agriculture, domestic protein production increased slightly in the third quarter of fiscal 2024. The Beef segment experienced limited supply of market-ready cattle and increased cattle costs, while the Pork segment experienced sufficient supply and increased hog costs. The Chicken segment saw reduced feed ingredient costs, and the Prepared Foods segment faced increased raw material costs, primarily due to higher meat costs.
Tyson Foods' strategy is focused on delivering margins in the core protein business, growing its branded portfolio, and scaling in international markets. The company also approved a restructuring program, the 2022 Program, which is expected to improve business performance, increase collaboration, enhance team member agility, and reduce redundancies. The program is anticipated to result in cumulative pretax charges of approximately $225 million.
In terms of financial performance, Tyson Foods reported sales of $13,353 million in the third quarter of fiscal 2024, reflecting a 1.6% sales growth compared to the same period in fiscal 2023. The company's cost of sales as a percentage of sales was 93.4% in the third quarter of fiscal 2024, showing an improvement from 94.8% in the third quarter of fiscal 2023. Selling, general and administrative expenses decreased to $537 million in the third quarter of fiscal 2024, compared to $579 million in the same period of fiscal 2023.
Following these announcements, the company's shares moved 2.7%, and are now trading at a price of $62.9. Check out the company's full 10-Q submission here.
