Share via Email


* Email To: (Separate multiple addresses with a semicolon)
* Your Name:
* Email From: (Your IP Address is 44.192.25.113)
* Email Subject: (personalize your subject)


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

Tyson Foods Inc. Reports on Q2 FY 2022

05/10/2022

Chick-NewsIn a press release dated May 9th Tyson Foods Inc. (TSN) announced results for Q2 for FY 2022 ending April 2nd 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)

 

Second Quarter Ending

April 2nd 2022

April 3rd 2021

Difference (%)

Sales:

$13,117,000

$11,300,000

+16.1

Gross profit:

$1,735,000

$1,253,000

+38.5

Operating income:             

$1,156,000

$720,000

+60.6

Pre-tax Income

Net Income

         $1,087,000

         $829,000

$624,000

$476,400

+74.2

+75.8

Diluted earnings per share:

$2.28

$1.30

+18.9

Gross Margin (%)

13.2

11.1

+37.5

Operating Margin (%)

8.8

6.4

+68.7

Profit Margin (%)

6.3

4.2

+50.0

Long-term Debt and liabilities:

$9,788,000

        $9,935,000

          +1.5  

12 Months Trailing:

 

 

 

           Return on Assets    (%)

9.5

 

 

           Return on Equity    (%)

21.6

 

 

           Operating Margin   (%)

11.1

 

 

           Profit Margin          (%)

7.5

 

 

Total Assets

$35,898,000

      $36,309,000

          -1.1

Intraday Market Capitalization

$33,650,000

                    

          

 

52-Week Range in Share Price:  $69.83 to $100.72.  50-day Moving average,  $91.39

Market Close: Friday May 6th $90.85. Close Monday May 9th post-release $94.37.

Forward P/E 11.5                  Beta 0.8

 

The Chicken Segment attained sales of $4,086 million ($3,553 million in Q2 FY 2021) representing 31.2 percent of Company revenue. Operating income was $198 million adjusted to $203 million. In Q2 of 2021 operating income was $6 million.

 

For comparison among Tyson Foods’ business segments the adjusted operating incomes were respectively:- Pork, $59 million; Beef, $638 million; Prepared Foods $263 million.

 

In commenting on results Donnie King, president and CEO stated “Our performance in the first half of the year reflects our improving operational execution and strong customer and consumer demand for our brands and products,” He added “We continue to prioritize investment in our team members and business in a number of ways, including increasing pay, expanding pilots of health and child care services, and providing skills and life services, such as free college education and legal services for immigration. Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, productivity, and bringing more capacity on line. This is all part of our strategy to win with customers and consumers, win with team members and win with excellence in execution.”


Chick-NewsWith regard to the Chicken Segment the company release included:- 
Sales volume increased in the second quarter and first six months of fiscal 2022 primarily due to a strong demand environment partially offset by continued supply chain constraints. Average sales price increased in the second quarter and first six months of fiscal 2022 due to the effects of pricing initiatives in an inflationary cost environment. Operating income increased in the second quarter and first six months of fiscal 2022 due to increased sales volume and higher average sales prices, partially offset by the impacts of inflationary market conditions including increased supply chain costs and a challenging labor environment. In the second quarter of fiscal 2022, we experienced $100 million of higher feed ingredient costs and $101 million of net derivative gains as compared to $10 million of net derivative gains in the second quarter of fiscal 2021. In the first six months of fiscal 2022, we experienced $285 million of higher feed ingredient costs and $159 million of net derivative gains as compared to $83 million of net derivative gains in the first six months of fiscal 2021. Additionally, operating income in the first six months of fiscal 2022 was impacted by $18 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.

 

Chick-NewsThe report concluded with a forward projection relevant to the Industry:-

USDA projects chicken production will increase approximately 1% in fiscal 2022 as compared to fiscal 2021. We anticipate an adjusted operating margin of 5% to 7% for fiscal 2022 as we continue to expect stronger performance in the second half of the fiscal year.

 

Guidance for FY 2022 included Revenue between $52 and $54 billion; Adjusted operating margin of 8 to 10 percent and Capex of $2 billion. The Company warned that supply chain issues would impact international operations.

 


 
Copyright © 2022 Simon M. Shane