In a press release dated November 13th Tyson Foods Inc. (TSN) announced results for the 4th quarter and FY 2023 ending September 30th 2023. TSN posted lower revenue than anticipated but was higher on adjusted 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)
|
Fourth Quarter Ending
|
Sept. 30th 2023
|
Oct. 1st 2022
|
Difference (%)
|
|
Sales:
|
$13,348,000
|
$13,737,000
|
-2.8
|
|
Gross profit:
|
$459,000
|
$1,307,000
|
-64.9
|
|
Operating income (loss):
|
$(463,000)
|
$766,000
|
-160.0
|
|
Pre-tax income (loss)
Net income (loss)
|
$(556,000)
$(450,000)
|
$666,000
$537,000
|
-183.5
-182.5
|
|
Diluted earnings (loss) per share
Adjusted earnings per share
|
$(1.31)
$(0.37)
|
$1.50
$1.63
|
-186.7
-122.7
|
|
Gross Margin (%)
|
3.4
|
9.5
|
-64.2
|
|
Operating Margin (%)
|
-3.5
|
5.6
|
-162.5
|
|
Profit Margin (%)
|
-3.4
|
3.9
|
-187.2
|
|
Long-term Debt and other liabilities:
|
$9,189,000
|
$9,239,000
|
-0.5
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
0.9
|
|
|
|
Return on Equity (%)
|
-3.4
|
|
|
|
Operating Margin (%)
|
-1.2
|
|
|
|
Profit Margin (%)
|
-1.2
|
|
|
|
Total Assets: Sept. 30th ‘23/Oct. 1st 2022
|
$36,251,000
|
$36,821,000
|
-1.5
|
|
Intraday Market Capitalization November 17th
|
$17,310,000
|
|
|
* Tyson Foods registered a goodwill impairment charge of $333 million for the Beef Segment
For FY 2023 Tyson Foods posted a GAAP loss of $(648) on revenue of $52,881 million with a negative diluted EPS of $(1.87). For FY 2022 the Company earned $3,238 million on revenue of $53,282 million with a diluted EPS of $8.92
52-Week Range in Share Price of TSN: $44.94 to $67.87. 50-day Moving average, $48.63
Market Close: Friday November 10th $46.95. Monday November 13th post release, at market close $45.61 down 2.9 percent.
Forward P/E 22.9 Beta 0.8
The Chicken Segment attained sales of $4,155 million ($4,619 million in Q4 FY 2022) representing 31.1 percent of Company revenue. GAAP operating loss was $(267) million in Q4 representing 57.7 percent of total Company operating loss after a charge of $118 million. Operating income in Q4 FY 2022 was $340 million representing 44.3 percent of the Company total. For the Chicken Segment the report stated:- “The USDA projects chicken production will increase slightly in FY 2014. Anticipated adjusted operating income was forecast at $400 to $700 million for FY 2024.
For comparison among Tyson Foods’ business segments the adjusted operating income (loss) in Q4 2023 were respectively:- Pork, ($11) million; Beef, $(323) million; Prepared Foods $118 million and International $20 million.
In commenting on results Donnie King, president and CEO stated “While economic headwinds persist, we are moving in the right direction and managing what we can control”. He added, "The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”
Guidance for FY 2024 included Revenue unchanged from FY 2023. Adjusted operating margin for the Company was stated to be $1.0 to $1.5 billion. Capital expenditure was reduced to $1.0 to 1.5 billion. In the Q2 report Tyson Foods projected $1 billion in savings from the “Productivity Program” by the end of 2024 although this prediction was not confirmed in the most recent quarterly report.
Moody’s lowered the outlook for Tyson Foods but the credit rating was not changed at Baa2, slightly above ‘junk’ status. The Company has $1.25 billion maturing in August 2024. Net interest will amount to $400 million n FY 2024.