Tyson Foods’ net income more than doubles in Q4

Volumes were down during the fourth quarter, but higher average prices offset that decline

Tyson Foods saw its net income more than double during the fourth quarter of fiscal year 2021, rising from $657 million to $1.36 billion.

The company also had a strong quarter in terms of sales, increasing from $11.46 million during the fourth quarter of fiscal year 2020 to $12.811 million during the most recent quarter. While the company reported declines in sales volumes for its chicken, beef, pork and prepared foods segments, that decreased volume was offset by higher prices.

“We delivered double digit sales and earnings growth during the fourth quarter and full year, and our performance was supported by our diverse portfolio and continued strength in consumer demand for protein,” Donnie King, president and CEO of Tyson Foods, said in a press release. "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.”

Chicken segment performance

Tyson Foods’ chicken segment saw its sales increase from $3.433 billion to $3.873 billion. The sales volume decreased 5.9%, but the average price increased by 18.7%. The company stated in its press release that the average sales price increased “due to favorable sales mix and inflationary market conditions,” while the loss in sales volume was attributed to “the impacts associated with a decline in hatch rate, a challenging labor environment and disruptions due to severe weather in the second quarter of fiscal 2021.”

The segment’s operating income for the quarter declined from $86 million during the fourth quarter of 2020 to a operating loss of $136 million for the most recent quarter.

Performance of other segments

Tyson’s pork segment saw the largest drop in volume during the fourth quarter, declining 17.7% on a year-over-year basis, yet the 38% increase in price more than offset the declining volume. The beef segment’s volumes declined 15.4%, but the average price rose by 32.7%.

The prepared foods segment achieved $2.253 billion in sales for the quarter, which was down from the $2.277 billion a year ago. The volumes dropped 12.5%, but the average price rose 11.4%.

The prepared foods and beef segments saw operating margins rise by 36.5% and 22.9%, respectively, while the pork segment’s operating margin increased 4.7%.

Par : Roy Graber (15/11/2021)

Source : wattagnet.com

Image : vecteezy.com