Tyson Foods(TSN) - 2024 Q4 - Annual Results

Financial Performance - Sales for fiscal 2024 reached $53,309 million, up 0.8% from the prior year[3] - Adjusted operating income for fiscal 2024 was $1,820 million, a 95% increase from the prior year[3] - Adjusted EPS for fiscal 2024 was $3.10, up 131% from the prior year[3] - Fourth quarter sales were $13,565 million, up 1.6% from the prior year[4] - Fourth quarter adjusted operating income was $512 million, up 117% from the prior year[4] - Sales for the twelve months ended September 28, 2024, increased to $53,309 million, up 0.8% from $52,881 million in the previous year[13] - Gross profit for the twelve months ended September 28, 2024, was $3,627 million, representing a gross margin of 6.8%, compared to $2,631 million and 5.0% in the previous year[13] - Net income attributable to Tyson for the twelve months ended September 28, 2024, was $800 million, compared to a net loss of $648 million in the previous year[13] - Adjusted operating income for the twelve months ended September 28, 2024, was $1,820 million, up from the reported operating income of $1,409 million[29] - Net income for the twelve months ended September 28, 2024, was $822 million, compared to a net loss of $649 million for the same period in 2023[34] - Adjusted EBITDA for the twelve months ended September 28, 2024, was $3,120 million, up from $2,149 million in 2023[34] Segment Performance - Beef segment sales for the fourth quarter were $5,261 million, up 3.7% in volume and 0.9% in price from the prior year[5] - Chicken segment adjusted operating income for the fourth quarter was $356 million, up from $75 million in the prior year[7] Cash Flow and Capital Expenditures - Cash and cash equivalents increased significantly to $1,717 million as of September 28, 2024, from $573 million in the previous year[15] - Cash provided by operating activities for the twelve months ended September 28, 2024, was $2,590 million, compared to $1,752 million in the previous year[19] - Additions to property, plant, and equipment for the twelve months ended September 28, 2024, were $1,132 million, down from $1,939 million in the previous year[18] - Free cash flow, defined as cash provided by operating activities minus payments for property, plant, and equipment, was $1,458 million for the twelve months ended September 28, 2024[19][18] - Free cash flow for the twelve months ended September 28, 2024, was $1,458 million, a significant improvement from a negative $187 million in 2023[35] Debt and Financial Ratios - Long-term debt increased to $9,713 million as of September 28, 2024, from $7,611 million in the previous year[16] - Gross debt to EBITDA ratio improved to 3.4x in 2024 from 9.7x in 2023[34] - Net debt to EBITDA ratio improved to 2.8x in 2024 from 9.1x in 2023[34] Non-GAAP and Adjusted Metrics - Adjusted non-GAAP net income attributable to Tyson for the twelve months ended September 28, 2024, was $329 million, with an adjusted EPS of $0.92[25] - Tyson Foods reported a GAAP net loss of $450 million for the fourth quarter ended September 30, 2023, with an EPS impact of $(1.31)[26] - Adjusted Non-GAAP net income for the fourth quarter was $133 million, with an EPS impact of $0.37[26] - For the twelve months ended September 28, 2024, Tyson Foods reported a GAAP net income of $800 million, with an EPS impact of $2.25[27] - Adjusted Non-GAAP net income for the twelve months ended September 28, 2024, was $1,103 million, with an EPS impact of $3.10[27] Impairments and Contingencies - Tyson Foods recorded a goodwill impairment of $333 million in the fourth quarter of 2023[26] - Legal contingency accruals amounted to $118 million in the fourth quarter of 2023[26] Restructuring and Plant Closures - Plant closures and disposals contributed $215 million to operating income in the fourth quarter of 2023[26] - Restructuring and related charges for the twelve months ended September 28, 2024, were $31 million, down from $124 million in 2023[34] - Plant closures and disposals for the twelve months ended September 28, 2024, were $182 million, down from $322 million in 2023[34] Operational Highlights - The Netherlands facility contributed $86 million to adjusted operating income for the twelve months ended September 28, 2024[29] - Brand discontinuation added $8 million to adjusted operating income for the twelve months ended September 28, 2024[29] - The company had approximately 138,000 team members as of September 28, 2024[37] Future Outlook - The company anticipates total adjusted operating income for fiscal 2025 to be between $1.8 billion and $2.2 billion[11] - Capital expenditures for fiscal 2025 are expected to be between $1.0 billion and $1.2 billion[11] - The company expects free cash flow to exceed dividends for fiscal 2025[11] Depreciation and Amortization - Depreciation expense for the twelve months ended September 28, 2024, was $1,159 million, up from $1,100 million in 2023[34] - Amortization expense for the twelve months ended September 28, 2024, was $229 million, consistent with 2023[34]