Tyson Foods recorded a 2% increase in net sales during its third quarter as it benefited from the acquisition of prepared foods supplier AdvancePierre Foods.
Tyson, which owns brands such as Hillshire Farm, Ball Park and State Fair, recorded a turnover of $10.95 billion for the quarter. Operating income was up 15% to $802 million.
In its chicken and prepared foods segments, net sales were up in part thanks to the AdvancePierre deal, which had its results incorporated into the two units. However, chicken sales volumes decreased “due to sluggish demand for certain chicken products”. The company’s beef and pork units both posted a decrease in sales.
Tyson Foods CEO Tom Hayes said: “We continued to grow our business in Q3, even with the headwinds we faced related to oversupply and pricing. In this challenging environment, we delivered a solid quarter overall, growing earnings, operating income and margins.
“Our diverse portfolio continues to be a key advantage for us. Our beef and prepared foods segments had a strong quarter, helping to balance the results in our chicken and pork segments, which faced stiff headwinds.
“We have a sound strategy and a solid foundation, which will continue to serve our business and shareholders well. We remain confident in our ability to create long-term value.”
Tyson Foods has increasingly restructured its business to focus on its core protein unit. In June it announced it would sell its Sara Lee Frozen Bakery and Van’s business to private equity firm Kohlberg & Company.
It has also shifted its focus to alternative protein companies, with investments in biotechnology company Future Meat Technologies, lab-grown meat start-up Memphis Meats and part-funded a $55 million investment in meat alternative company Beyond Meat in December 2017.
For the full year, Tyson said it expects sales to grow approximately 6% to between $40-$41 billion, which is attributed to incremental AdvancePierre sales of $1.1 billion.
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