Tyson Foods Reports Third Quarter 2024 Results

Core Insights - Tyson Foods, Inc. reported a positive turnaround in its financial performance for the third quarter and the first nine months of fiscal 2024, with significant increases in sales, operating income, and earnings per share compared to the previous year [1][2][3]. Financial Performance - Third Quarter Results: - Sales reached $13,353 million, up 1.6% from $13,140 million in the same quarter last year [3]. - GAAP operating income was $341 million, a substantial increase of $691 million from a loss of $350 million in the prior year [3]. - Adjusted operating income was $491 million, up 174% from $179 million [3]. - GAAP earnings per share (EPS) was $0.54, compared to a loss of $1.18 in the previous year [3]. - Adjusted EPS was $0.87, up 480% from $0.15 [3]. - Nine Months Results: - Total sales for the nine months were $39,744 million, a slight increase of 0.5% from $39,533 million [2]. - GAAP operating income was $884 million, up $816 million from $68 million [2]. - Adjusted operating income was $1,308 million, an increase of 88% from $697 million [2]. - GAAP EPS was $1.25, up from a loss of $0.56 [2]. - Adjusted EPS was $2.18, a 125% increase from $0.97 [2]. Segment Performance - Beef Segment: - Third quarter sales were $5,241 million, up 4.4% from $4,956 million [4]. - Nine-month sales were $15,218 million, a 0.9% increase from $14,296 million [4]. - Pork Segment: - Third quarter sales reached $1,462 million, up 12.6% from $1,324 million [4]. - Nine-month sales were $4,465 million, a 4.0% increase from $4,274 million [4]. - Chicken Segment: - Third quarter sales were $4,076 million, down 3.7% from $4,212 million [4]. - Nine-month sales were $12,174 million, down 2.7% from $12,905 million [4]. - Prepared Foods Segment: - Third quarter sales were $2,432 million, a slight increase of 0.1% from $2,383 million [5]. - Nine-month sales were $7,379 million, up 1.7% from $7,343 million [5]. - International/Other Segment: - Third quarter sales were $582 million, down 14.6% from $633 million [5]. - Nine-month sales were $1,744 million, down 11.1% from $1,879 million [5]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months was $1,973 million, up 38% from the previous year [2]. - Free cash flow was $1,089 million, a significant increase of $1,224 million from the prior year [2]. - As of June 29, 2024, total liquidity was approximately $4.8 billion, well above the minimum liquidity target of $1.0 billion [3][17]. Outlook - For fiscal 2024, the USDA projects a slight increase in domestic protein production compared to fiscal 2023 [8]. - Tyson anticipates total company adjusted operating income of $1.6 billion to $1.8 billion for fiscal 2024 [13]. - Sales are expected to remain relatively flat compared to fiscal 2023 [14]. - Capital expenditures are projected to be between $1.2 billion and $1.3 billion, focusing on profit improvement and maintenance projects [15].