Tyson Foods Q4 Profit Rises, Adj. Sales Up 20%; Launches Productivity Program

tysonfoods april07 15nov21 lt

Tyson Foods, Inc. (TSN) delivered double digit sales and earnings growth during the fourth quarter of fiscal 2021. Volumes were down 4% in the fourth quarter. Looking forward, the company projects solid profitability in fiscal 2022. Sales growth is estimated in a range of 5-7%, and volume growth in a range of 2-3%.

To foster continuous improvement and faster decision making, the company launched a new productivity program designed to deliver more than $1 billion in annual savings by the end of 2024. The focus of the plan includes operational and functional excellence, digital solutions, and automation and advanced technologies. The company is targeting productivity savings of $300 million to $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline.

Fourth quarter adjusted earnings per share was $2.30, up 35% from prior year. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $2.03, for the quarter. Analysts' estimates typically exclude special items. Adjusted operating income was $1.15 billion, up 26% from prior year.

GAAP earnings per share was $3.71, up 107% from prior year. Net income attributable to Tyson increased to $1.35 billion from $654 million. Adjusted sales were $12.81 billion, an increase of 20% previous year. Analysts on average had estimated $12.66 billion in revenue.

Beef sales volume decreased 15.4% during the fourth quarter, or decreased 8.8% after removing the impact of an additional week in prior year. Pork sales volume decreased 17.7%, or decreased 11.3% after removing the impact of an additional week in 2020.

Chicken sales volume decreased 5.9%, or increased 1.3% after removing the impact of an additional week in 2020, primarily due to increased demand in the foodservice channel. Prepared Foods sales volume decreased 12.5%, or decreased 5.7% after removing the impact of an additional week in prior year, due to lower production throughput primarily associated with a challenging labor and supply environment.

Fiscal 2021 adjusted earnings per share was $8.28, up 53% from prior year. Sales increased to $47.05 billion from $43.19 billion.

Donnie King, CEO of Tyson Foods, said: "We delivered a record performance in our beef segment and experienced share gains in our retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands, while supporting the continued recovery in foodservice."

For fiscal 2022, the company projects sales to approximate $49 billion to $51 billion. Analysts polled by Thomson Reuters expect the company to revenue of $47.99 billion.

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