Tyson Foods ( NYSE: TSN ) sees remained profitability improvements into 2023 as management focuses on cost-savings efforts.
The Arkansas-based protein giant notched $1.63 in adjusted EPS for the fiscal fourth quarter, down 29% from prior year, and $13.74B in revenue. Analysts had expected about a 25% decline in EPS to $1.72 alongside about a 5% jump in revenue from the prior year to $13.49B.
“We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein,” CEO Donnie King said. "Our results were supported by historically strong operations in our Beef segment and improved performance in our Chicken segment. We also experienced share gains in both our foodservice Focus 6 categories and retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands.”
Full-year sales of $53.28B edged out analyst expectations of $52.89B while $8.73 in adjusted EPS for the full year came up just short of the $8.78 expectation. Elsewhere, the company highlighted $1B in debt reduction as cost-savings programs bore fruit in fiscal 2022.
“We realized more than $700M of productivity savings in fiscal 2022, which partially offset the impacts of inflationary market conditions, and we now believe we will exceed our $1B target in fiscal 2023,” the earnings release stated.
Forecasting for the 2023 fiscal year, management expects $55B to $57B in sales, above the $54B consensus. The company expects capital expenditures to reach $2.5B for the fiscal year, aimed at “capacity expansion and utilization, automation to alleviate labor challenges and brand and product innovation.”
An earnings presentation projects “solid profitability in fiscal year 2023” despite a challenging macroeconomic environment and persistent supply chain problems which are particularly pronounced for pork products.
Shares of Tyson Foods ( TSN ) rose 1% in premarket trading on light volume shortly after the print .
For further details see:
Tyson Foods projects ‘strong profitability’ in 2023 despite macro pressures