Tyson Foods has reported an increase in Q3 net revenue from $12.48 billion in fiscal 2021 to $13.5 billion in fiscal 2022, but warned of supply constraints.
The meat giant has posted GAAP operating income of $1.03 billion, a 3% decrease from the year-ago period, while its adjusted operating income declined 27% to $998 million.
In the first nine months of fiscal 2022, sales volume decreased across all of Tyson Foods’ meat segments with the exception of chicken, due variously to the impacts of supply chain constraints, reduced global demand, increased pricing and reduction in volumes of chicken related to a fire at a production facility in 2021.
However, sales volume for Tyson Foods’ beef segment increased by 1.3% in the third quarter, driven by a strong global demand environment, partially offset by a challenging labour environment and continued supply chain constraints.
For fiscal 2022, the United States Department of Agriculture has indicated domestic protein production (beef, pork, chicken and turkey) should be relatively flat compared with fiscal 2021 levels.
Donnie King, president and CEO of Tyson Foods, said: “We delivered solid results during the third quarter, focusing on operational excellence and aggressive cost management. The turnaround of our chicken business continues, and we continue to be the market share leader in many of our retail business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands.”
King continued: “We maintained double-digit sales and earnings growth year to date as well as progressing toward our goal of delivering more than $1 billion in recurring productivity savings by the end of fiscal 2024. I’m optimistic about our ability to win with our team members, win with our customers and consumers and win with excellence in execution.”
© FoodBev Media Ltd 2022
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