Share via Email


* Email To: (Separate multiple addresses with a semicolon)
* Your Name:
* Email From: (Your IP Address is 3.218.67.1)
* Email Subject: (personalize your subject)


Email Content:
Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Tyson Foods Reports on Q1 of FY 2020

02/07/2020

In a press release dated February 6th Tyson Foods Inc. (TSN) announced results for the 1st Quarter of Fiscal 2020 ending December 28 th. 2020.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)


Noel White

1st Quarter Ending

Dec. 28th 2019

Dec. 29th 2018

Difference (%)

Sales:

$10,815,000

$10,193,000

+5.8

Gross profit:

$1,440,000

$1,355,000

+6.3

Operating income:

$826,000

$807,000

+2.3

Pre-tax Income

Net Income

$725,000

$561,000

$713,000

$552,000

+1.6

+1.6

Diluted earnings per share:

$1.52

$1.51

+0.7

Gross Margin (%)

13.3

13.1

-1.5

Operating Margin (%)

7.6

7.9

-3.8

Profit Margin (%)

5.2

5.4

-3.7

Long-term Debt:

$2,369,000

$2,356,000

+0.6

12 Months Trailing:

     

Return on Assets (%)

5.5

   

Return on Equity (%)

14.7

   

Operating Margin (%)

6.8

   

Profit Margin (%)

4.7

   

Total Assets

$33,811,000

$33,097,000

+2.2

Market Capitalization

$27,802,000

   

52-Week Range in Share Price: $ 58.49 to $94.24

Market Close Wed. Feb. 5th $84.14. Close Thu. Feb. 6 th post-release $79.77

Forward P/E 11.0 Beta 0.4 Peg Ratio 1.15

Capital expenditure Q1 FY 2019, $312 million.


In commenting on results Noel White, CEO stated "our overall results in the first quarter of fiscal 2020 were in line with expectations," He added "our Beef and Pork segments performed well as the effects of African swine fever are beginning to materialize. Our Chicken segment performed better operationally, although in a soft pricing environment. Our Prepared Foods segment produced its sixth consecutive quarter of retail consumption growth, demonstrating the strength of our brands and innovation as we grew or held market share in all core categories.

He concluded "with improved access to global markets resulting from recent trade developments, there are reasons to be optimistic about fiscal 2020 and beyond and we are well-positioned to capitalize on opportunities in the global marketplace. Although we anticipate the challenges and volatility typical in our second fiscal quarter, our long-term outlook remains positive."

The quarterly report addressed performance in the chicken Segment. Sales increased primarily due to incremental volume from a business acquisition, partially offset by lower volume from our rendering and blending business. Average sales price increased due to lower rendering and blending sales, which carry a lower average sales price, largely offset by broadly weaker chicken pricing as a result of market conditions. Operating income decreased primarily from challenging pricing conditions. Additionally, operating income in the first quarter of fiscal 2020 was impacted by $21 million in restructuring costs.

It is evident from the table below that the Chicken Segment was a disproportionate contributor to operating profit. Chicken represented 30.4 percent of Q1 sales but 6.9 percent of operating income.

SEGMENT RESULTS (in millions)

Sales

(for the first quarter ended December 28, 2019, and December 29, 2018)

 

First Quarter

     

Volume

Avg. Price

 

2020

2019

Change

Change

Beef

$

3,838

 

$

3,926

 

(8.0

)%

5.8

%

Pork

1,379

 

1,179

 

7.3

%

9.7

%

Chicken

3,292

 

3,115

 

4.5

%

1.2

%

Prepared Foods

2,140

 

2,149

 

(3.1

)%

2.7

%

International/Other

498

 

143

 

220.2

%

27.2

%

Intersegment Sales

(332)

)

(319

)

n/a

 

n/a

 

Total

$

10,815

 

$

10,193

 

4.7

%

1.4

%

 

 

Operating Income (Loss)

(for the first quarter ended December 28, 2019, and December 29, 2018)

 

First Quarter

     

Operating Margin

 

2020

2019

2020

2019

Beef

$

410

 

$

305

 

10.7

%

7.8

%

Pork

191

 

95

 

13.9

%

8.1

%

Chicken

57

 

160

 

1.7

%

5.1

%

Prepared Foods

158

 

265

 

7.4

%

12.3

%

International/Other

10

 

(18

)

n/a

 

n/a

 

Total

$

826

 

$

807

 

7.6

%

7.9

%


 
Copyright 2019 Simon M. Shane