Vending

Tyson Foods boosts Q2 2021 sales, earnings

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May 10, 2021

Tyson Foods Inc.'s sales increased from $10.9 billion in Q2 2020 to $11.3 billion in Q2 2021, according to an earnings release.

Net income rose from $379 million in Q2 2020 to $477 million in Q2 2021.

GAAP earnings per share rose 26% from $1.03 in Q2 2020 to $1.30 in Q2 2021 while adjusted EPS rose 68% from 80 cents in Q2 2020 to $1.34 in Q2 2021.

The $11.3 billion in revenue beat analyst expectations by $110 million while the non-GAAP EPS of $1.34 beat expectations by 21 cents and the GAAP EPS of $1.30 beat expectations by 20 cents, according to Seeking Alpha.

"We delivered a very strong performance in a complex operating environment with continued success in retail and improvements in foodservice as the industry is recovering," Tyson Foods President and CEO Dean Banks said in the release. "We generated adjusted operating income growth of 32% for the first half of fiscal 2021, driven by solid results in beef and prepared foods."

Beef sales volume decreased during the second quarter of fiscal 2021 due to a reduction in live cattle processed partially associated with the impacts of severe winter weather and a challenging labor environment. Sales volume was relatively flat for the first six months of fiscal 2021 as the impacts in the second quarter were partially offset by strong domestic and export demand as well as the prior year impact of a fire which caused the temporary closure of a production facility for the majority of the first quarter of fiscal 2020.

Pork sales volume decreased during the second quarter and first six months of fiscal 2021 due to a reduction in live hogs processed primarily associated with severe winter weather, which was partially offset by strong demand. Average sales price increased in the second quarter and first six months of fiscal 2021 due to strong demand.

Chicken sales volume decreased during the second quarter and first six months of fiscal 2021 due to lower production throughput associated with COVID-19, disruptions due to severe winter weather, decline in hatch rate and a challenging labor environment.

Prepared foods sales volume decreased during the second quarter and first six months of fiscal 2021 as growth in volume across the retail channel was offset by a reduction in the foodservice channel related to lower demand from the impact of COVID-19.

On an adjusted basis, the company anticipates prepared foods results in fiscal 2021 to be similar to fiscal 2020, and pork results will likely be lower in fiscal 2021 as compared to fiscal 2020.

At current grain prices, chicken results will likely be lower in fiscal 2021 as compared to fiscal 2020, and because of stronger than expected performance in beef and current market conditions, the company expects beef to deliver improved fiscal 2021 results as compared to fiscal 2020.

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