Tyson Foods has recorded strong first quarter results, as the brand nearly tripled its net income and registered 11% growth in net sales following the strong performance of its prepared foods sector.
In the three months ending 30 December 2017, Tyson recorded net income of $1.63 billion, a 175% increase from the $594 million net income figure recorded in the same period last year.
The company’s net sales grew to $10.2 billion from the $9.18 billion figure in last years first quarter results.
Each of Tyson’s meat segments saw net sales rise, though Tyson’s prepared food sector registered the largest net sales increase, with net sales rising 21% to $2.29 billion from $1.89 billion.
Tyson’s beef arm also registered strong net sales of $3.89 billion, up 10% from last year’s figure of $3.53 billion.
However, the company’s overall operating income actually fell 6% from $982 million in the first quarter of 2017 to $927 million.
Over the last few weeks, Tyson has been expanding after investing in countertop oven start-up Tovala and lab-grown meat start-up Memphis Meats.
The company stated that the investment in Memphis Meats was an example of its “commitment to explore innovative, new ways of meeting growing global demand for protein”.
Tom Hayes, Tyson Foods president and chief executive officer said: “At Tyson Foods, we’re creating a modern food company focused on protein. Building on our momentum from a record year in fiscal ’17, we’re off to a strong start in fiscal ’18.
“We delivered record adjusted EPS and our second-strongest quarter of operating income in Q1, with operating cash flows of more than $1.1 billion.
“The strength and diversity of our portfolio are evident. We drove solid results in each of our segments – beef, pork, chicken and prepared foods.
“We grew topline sales, with our retail and food service sales both outpacing the industry. We’re encouraged by the position we’re in today.
“As we look to the long-term, we’re confident in our ability to continue growing the business. Demand for protein continues to rise, and we’re well-positioned to take advantage of that opportunity – and to fulfill our aspiration of sustainably feeding the world.”
© FoodBev Media Ltd 2019