Poultry Industry News, Comments & More

Tyson Foods Inc. Reports on Q4 and FY 20212

11/15/2021

In a press release dated November 15th Tyson Foods Inc. (TSN) announced results for Q4 and FY 2021 ending October 2nd.     

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)


Donnie King CEO

Quarter Ending

October 2nd

2021

October 3rd 2020

Difference (%)

Sales:

$12,811,000

$11,460,000

+27.8

Gross profit:

$2,476,000

$1,610,000

+53.8

Operating income:             

$1,909,000

$962,000

+98.5

Pre-tax Income

Net Income

         $1,835,000

         $1,358,000

$837,000

$654,000

+83.4

+107.6

Diluted earnings per share:

$3.71

$1.79

+107.3

Gross Margin (%)

12.9

16.1

-19.9

Operating Margin (%)

8.5

9.6

-11.5

Profit Margin (%)

6.0

5.2

+15.4

Long-term Debt and liabilities:

$9,935,000

      $12,159,000

         -18.3  

12 Months Trailing:

 

 

 

           Return on Assets    (%)

7.0

 

 

           Return on Equity    (%)

14.9

 

 

           Operating Margin   (%)

8.6

 

 

           Profit Margin          (%)

5.1

 

 

Total Assets

$36,309,000

      $34,456,000

          +5.4

Intraday Market Capitalization

$30,330,000

                    

          

 

For FY 2021 net earnings for Q4 increased 47.8 percent on sales of $47.05 Billion, up 8.9 percent from FY 2020 and with a 47.9 percent increase in FY2021 EPS to $8.34 compared to FY 2020

 

52-Week Range in Share Price:  $60.52  to  $84.80  50-day Moving average  $80.26

 

Market Close: Friday November 12th $81.23 .

Market Monday November 15th 15H00 post-release $84.25 (+3.7 percent)

Forward P/E  12.3                  Beta 0.8

 

 

 

 

The Chicken Segment attained sales of $3,873 million ($3,433 million in Q4 FY 2020) representing 30.2 percent of Company revenue. Operating loss was $(136) million adjusted to $(113.0) million. In Q4 of 2020 operating income was $86 million.  (See below for explanation of Q4 loss in Chicken Segment).

 

For comparison among Tyson Foods’ business segments the adjusted operating incomes were respectively:- Pork, $78 million; Beef, $1,147 million; Prepared Foods $39 million.

 

In commenting on results Donnie King, president and CEO stated “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,” said and CEO of Tyson Foods. "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.”

 

King added, “To foster continuous improvement and faster decision making, we are launching a new productivity program designed to deliver more than $1 billion in annual savings by the end of 2024. The focus of this plan includes operational and functional excellence, digital solutions and automation and advanced technologies.

 

King concluded, “We have tremendous opportunity ahead as we work to fulfill growing global demand for safe and nutritious protein products. We’re entering fiscal 2022 with great momentum and are committed to delivering strong returns for shareholders into the future.”

 

In addressing the Chicken Segment the Company statement included “Sales volume decreased 5.9% during the fourth quarter of fiscal 2021, or increased 1.3% after removing the impact of an additional week in 2020, primarily due to increased demand in the foodservice channel. Sales volume decreased 3.3% for fiscal 2021, or decreased 1.5% after removing the impact of an additional week in 2020.

 

Despite a strong demand environment, volume decreased due 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. Average sales price increased due to favorable sales mix and inflationary market conditions. Operating income decreased during the fourth quarter of fiscal 2021 primarily due to $325 million of higher feed ingredient costs, $75 million of net derivative losses in the fourth quarter of fiscal 2021 as compared to $45 million of net derivative gains in the fourth quarter of fiscal 2020, increased supply chain costs and a $23 million expense related to a fire at a production facility, partially offset by favorable product mix.

 

Operating income decreased during fiscal 2021 primarily due to a $626 million loss from the recognition of legal contingency accruals, $735 million of higher feed ingredient costs as compared to fiscal 2020, increased supply chain costs, $23 million of expenses related to a fire at a production facility, decline in hatch rate and disruptions due to severe weather. This was partially offset by favorable product mix, reduced direct incremental expense associated with COVID-19 and $65 million of net derivative gains in fiscal 2021 as compared to $50 million of net derivative losses in fiscal 2020”.


 
Copyright © 2021 Simon M. Shane