Vending

Tyson Foods lifts Q2 2022 sales, earnings

Image provided by iStock.

May 9, 2022

Tyson Foods Inc., which owns Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, idp and State Fair brands, lifted its Q2 2022 sales and earnings over the prior year period, according to an earnings report. Highlights include:

• Sales rose from $11.3 billion in Q2 2021 to $13.12 billion for the quarter ending April 2, 2022.
• Net income rose from $477 million to $833 million in the comparative quarters.
• Class A basic shares rose from $1.34 to $2.34 while diluted shares rose 75% from $1.30 to $2.28 in the comparative quarters. Adjusted EPS rose 71% from $1.34 to $2.29.
• Sales fell from $21.7 billion in the first half of 2021 to $26.04 billion in the first half of 2022.
• Net income rose from $949 million to $1.96 billion in the comparative half-year periods.
• Class A basic shares rose from $2.65 to $5.50 and diluted shares rose from $2.58 to $5.35 in the comparative half year periods. Adjusted EPS rose from $3.28 to $5.16.
• Beef sales volume was up slightly in the second quarter of fiscal 2022 driven by strong global demand, partially offset by a challenging labor environment and continued supply chain constraints.
• Pork sales volume decreased in the second quarter and first six months of fiscal 2022 primarily due to the impacts associated with a challenging labor environment.
• Chicken sales volume increased in the second quarter and first six months primarily due to a strong demand environment partially offset by continued supply chain constraints.
• Prepared food sales volume decreased in the second quarter and first six months due to lower production throughput primarily associated with a challenging labor and supply environment, uneven foodservice recovery and the divestiture of the pet treats business in the fourth quarter of fiscal 2021.

Shares traded today at $91.53 against a 52-week range of $69.88-$100.72.

The quarterly revenue of $13.12 billion beat analyst expectations by $280 million while the non-GAAP EPS of $2.29 beat expectations by 41 cents according to Seeking Alpha.

"Our performance in the first half of the year reflects our improving operational execution and strong customer and consumer demand for our brands and products," Donnie King, president and CEO, said in the press release. "Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, productivity and bringing more capacity on line."

The company expects 2022 fiscal sales to be $52 billion to $54 billion and anticipates an adjusted operating margin of 5% to 7% as it continues to expect stronger performance in the second half of the fiscal year.