In a press release dated February 6th Tyson Foods Inc. (TSN) announced results for the first quarter of FY 2023 ending December 31st 2022. TSN disappointed on revenue and earnings.
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)
|
First Quarter Ending
|
December 31st 2022
|
January 1st
2022
|
Difference (%)
|
|
Sales:
|
$13,260,000
|
$12,933,000
|
+2.5
|
|
Gross profit:
|
$968,000
|
$2,015,000
|
-51.0
|
|
Operating income:
|
$467,000
|
$1,455,000
|
-67.9
|
|
Pre-tax Income
Net Income
|
$434,000
$316,000
|
$1,410,000
$1,121,000
|
-69.2
-71.8
|
|
Diluted earnings per share:
|
$0.88
|
$3.07
|
-71.3
|
|
Gross Margin (%)
|
7.3
|
15.6
|
-53.2
|
|
Operating Margin (%)
|
3.5
|
11.3
|
-69.0
|
|
Profit Margin (%)
|
2.4
|
8.7
|
-72.4
|
|
Long-term Debt and other liabilities:
|
$9,304,000
|
$9,199,000
|
+1.1
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
7.5
|
|
|
|
Return on Equity (%)
|
17.3
|
|
|
|
Operating Margin (%)
|
8.3
|
|
|
|
Profit Margin (%)
|
6.1
|
|
|
|
Total Assets
|
$36,678,000
|
$36,821,000
|
-0.4
|
|
Intraday Market Capitalization February 6th
|
$23,310,000
|
|
|
52-Week Range in Share Price of TSN: $59.38 to $100.72. 50-day Moving average, $64.33
Market Close: Friday February 3rd $64.20. Open Monday February 6th post-release $60.44 down 5.1 percent.
TSN posted lower revenue against an estimate of $13,500 million and missed on earnings with a consensus GAAP EPS of $1.33.
Forward P/E 9.7 Beta 0.7
The Chicken Segment attained sales of $4,263 million ($3,890 million in Q1 FY 2022) representing 32.1 percent of Company revenue. Operating income was $69 million or 14.8 percent of the Company total. In Q1 of 2022 operating income was $140 million representing 9.6 percent of the Company total.
For comparison among Tyson Foods’ business segments the adjusted operating incomes in Q1 2023 were respectively:- Pork, ($21) million; Beef, $166 million; Prepared Foods $258 million and International ($5 million).
In commenting on results Donnie King, president and CEO stated “We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health,” He added “The strength of our retail brands, including Tyson®, Jimmy Dean®, Hillshire Farm®, and Ball Park, was demonstrated by the growth in Prepared Foods, most notably with Jimmy Dean ending the quarter at its all-time highest volume share. Our advantaged brands in advantaged categories uniquely position us to win in the marketplace.” King noted “We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability. We expect to improve our performance through the back half of fiscal 2023 and into the future, as we strive to execute with excellence and work to become best in class in our industry.”
He concluded “We are optimistic about the long-term outlook for Tyson. We have the world’s greatest protein brands, an incredible team, and a sound strategy to serve our customers and delight consumers with high-quality, sustainable, affordable protein.”
Guidance for FY 2023 included Revenue between $55 and $57 billion; Adjusted operating margin of 8 to 10 percent for FY 2023 but 2 to 4 percent for the Chicken Segment ; Capital expenditure of $2.5 billion Company wide. Tyson projects improved results from international operations.