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

Tyson Foods Inc. Reports on Q1 FY 2022

02/08/2022

In a press release dated February 7th Tyson Foods Inc. (TSN) announced results for Q1 for FY 2022 ending January 1st 2022.     

 

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 US$ x 1,000 except EPS)

 

1st Quarter Ending

January 1st 2022

January 2021

Difference (%)

Sales:

$12,933,000

$10,460,000

+23.6

Gross profit:

$2,015,000

$1,177,000

+71.2

Operating income:

$1,455,000

$705,000

+106.4

Pre-tax Income

Net Income

$1,410,000

$1,121,000

$616,000

$467,000

+128.9

+116.8

Diluted earnings per share:

$3.07

$1.28

+139.8

Gross Margin (%)

15.5

11.3

+37.2

Operating Margin (%)

11.3

6.7

+68.7

Profit Margin (%)

8.7

4.5

+93.3

Long-term Debt and liabilities:

$9,974,000

$9,935,000

+0.4

12 Months Trailing:

 

 

 

           Return on Assets    (%)

8.4

 

 

           Return on Equity    (%)

18.4

 

 

           Operating Margin   (%)

10.1

 

 

           Profit Margin          (%)

6.5

 

 

Total Assets (46%/47% goodwill and intangibles)

$36,824,000

$36,309,000

+1.4

Intraday Market Capitalization

$32,790,000

   

 

52-Week Range in Share Price:  $63.22 to $100.68  50-day Moving average  $87.66

Market            Close: Friday February 4th $88.49. Open Monday February 7th post release $97.64.

Forward P/E 12.2                  Beta 0.8

 

The Chicken Segment attained sales of $3,890 million ($2,831 million in Q1 FY 2021) representing 30.1 percent of Company revenue. Operating income was $140 million adjusted to $117 million. In Q1 of 2021 operating loss was $(216) million adjusted to $104 million after non-recurring legal settlements.

 

For comparison among Tyson Foods’ business segments the adjusted operating incomes were respectively:- Pork, $164 million; Beef, $956 million; Prepared Foods $186 million.

 

In commenting on results Donnie King, president and CEO stated “We’re pleased with the results of the first quarter and of the steps that we are taking to improve productivity,” He added “Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers and winning with excellence. We have the right team who are taking the right actions and as a result, we believe our future is bright.”

 

In addressing the Chicken Segment the Company statement included “Sales volume increased primarily due to increased live production and a strong demand environment. Average sales price increased due to the effects of an inflationary cost environment. Operating income increased due to increased sales volume and higher average sales prices, partially offset by the impacts of inflationary market conditions including $185 million of higher feed ingredient costs, increased supply chain costs and a challenging labor environment. Additionally, operating income in the first quarter of fiscal 2022 was impacted by $23 million of insurance proceeds, net of costs incurred related to a fire at a production facility and was impacted in the first quarter of fiscal 2021 by a $320 million loss from the recognition of a legal contingency accrual”.

 

Guidance for FY 2022 included Revenue between $49 and $51 billion; Adjusted operating margin of 5 to 7 percent and Capex of $2 billion.

 

The 10.3 percent advance in TSN following release of Q1 results resulted in a concurrent increase in the shares in Brazil of of JBS SA up 5.2 percent and 5.1 percent for Marfrig Global, owner of National Beef in the U.S.


 
Copyright © 2024 Simon M. Shane