Delivers Year-Over-Year Top and Bottom-Line Growth; Raises Fiscal Year 2025 Guidance
SPRINGDALE, Ark., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN), one of the world's largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, reported the following results:
| (in millions, except per share data) | First Quarter | ||||
| 2025 | 2024 | ||||
| Sales | $ | 13,623 | $ | 13,319 | |
| Operating Income | $ | 580 | $ | 231 | |
| Adjusted1 Operating Income (non-GAAP) | $ | 659 | $ | 411 | |
| Net Income Per Share Attributable to Tyson | $ | 1.01 | $ | 0.30 | |
| Adjusted1 Net Income Per Share Attributable to Tyson (non-GAAP) | $ | 1.14 | $ | 0.69 | |
First Quarter Highlights
- Sales of $13,623 million, up 2.3% from prior year
- GAAP operating income of $580 million, up 151% from prior year
- Adjusted operating income of $659 million, up 60% from prior year
- GAAP EPS of $1.01, up 237% from prior year
- Adjusted EPS of $1.14, up 65% from prior year
- Total Company GAAP operating margin of 4.3%
- Total Company adjusted operating margin (non-GAAP) of 4.8%
- Liquidity of $4.5 billion as of December 28, 2024
- Cash provided by operating activities of $1,031 million, down $269 million from prior year
- Free cash flow (non-GAAP) of $760 million, down $186 million from prior year
SEGMENT RESULTS (in millions)
| Sales | ||||||||||
| (for the first quarter ended December 28, 2024, and December 30, 2023) | ||||||||||
| First Quarter | ||||||||||
| Volume | Avg. Price | |||||||||
| 2025 | 2024 | Change | Change | |||||||
| Beef | $ | 5,335 | $ | 5,023 | 5.6 | % | 0.6 | % | ||
| Pork | 1,617 | 1,517 | (0.4) % | 7.0 | % | |||||
| Chicken | 4,065 | 4,033 | 1.5 | % | (0.7) % | |||||
| Prepared Foods | 2,473 | 2,543 | (3.2) % | 0.4 | % | |||||
| International/Other | 584 | 582 | 4.3 | % | (4.0) % | |||||
| Intersegment Sales | (451 | ) | (379 | ) | n/a | n/a | ||||
| Total | $ | 13,623 | $ | 13,319 | 1.6 | % | 0.7 | % | ||
| Operating Income (Loss) | ||||||||||
| (for the first quarter ended December 28, 2024, and December 30, 2023) | ||||||||||
| First Quarter | ||||||||||
| Operating Margin | ||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||
| Beef | $ | (64 | ) | $ | (206 | ) | (1.2) % | (4.1) % | ||
| Pork | 59 | 39 | 3.6 | % | 2.6 | % | ||||
| Chicken | 351 | 177 | 8.6 | % | 4.4 | % | ||||
| Prepared Foods | 209 | 243 | 8.5 | % | 9.6 | % | ||||
| International/Other | 25 | (22 | ) | n/a | n/a | |||||
| Total | $ | 580 | $ | 231 | 4.3 | % | 1.7 | % | ||
| Adjusted Operating Income (Loss) (Non-GAAP)1 | ||||||||||
| (for the first quarter ended December 28, 2024, and December 30, 2023) | ||||||||||
| First Quarter | ||||||||||
| Adjusted Operating Margin (Non-GAAP) | ||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||
| Beef | $ | (32 | ) | $ | (117 | ) | (0.6) % | (2.3) % | ||
| Pork | 59 | 68 | 3.6 | % | 4.5 | % | ||||
| Chicken | 368 | 192 | 9.1 | % | 4.8 | % | ||||
| Prepared Foods | 234 | 264 | 9.5 | % | 10.4 | % | ||||
| International/Other | 30 | 4 | n/a | n/a | ||||||
| Total | $ | 659 | $ | 411 | 4.8 | % | 3.1 | % | ||
For fiscal 2025, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) will increase approximately 1% compared to fiscal 2024 levels. The following is a summary of the updated outlook for each of our segments, as well as an outlook for revenue, capital expenditures, net interest expense, liquidity, free cash flow and tax rate for fiscal 2025. Certain of the outlook numbers include adjusted operating income (loss) (a non-GAAP metric) for each segment. The Company is not able to reconcile its full-year fiscal 2025 projected adjusted results to its fiscal 2025 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating income (loss) should not be considered a substitute for operating income (loss) or any other measures of financial performance reported in accordance with GAAP. Investors should rely primarily on the Company's GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.
Beef
USDA projects domestic production will decrease approximately 1% in fiscal 2025 as compared to fiscal 2024. We anticipate adjusted operating loss between $(0.4) billion and $(0.2) billion in fiscal 2025.
Pork
USDA projects domestic production will increase approximately 2% in fiscal 2025 as compared to fiscal 2024. We anticipate adjusted operating income of $0.1 billion to $0.2 billion in fiscal 2025.
Chicken
USDA projects chicken production will increase approximately 2% in fiscal 2025 as compared to fiscal 2024. We anticipate adjusted operating income of $1.0 billion to $1.3 billion for fiscal 2025.
Prepared Foods
We anticipate adjusted operating income of $0.9 billion to $1.1 billion in fiscal 2025.
International/Other
We anticipate improved results from our foreign operations in fiscal 2025 on an adjusted basis.
Total Company
We anticipate total company adjusted operating income of $1.9 billion to $2.3 billion for fiscal 2025.
Revenue
We expect sales to be flat to up 1% in fiscal 2025 as compared to fiscal 2024.
Capital Expenditures
We expect capital expenditures between $1.0 billion and $1.2 billion for fiscal 2025. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair.
Net Interest Expense
We expect net interest expense to approximate $375 million for fiscal 2025.
Liquidity
We expect total liquidity, which was $4.5 billion as of December 28, 2024, to remain above our minimum liquidity target of $1.0 billion.
Free Cash Flow
We expect free cash flow to be between $1.0 billion and $1.6 billion for fiscal 2025.
Tax Rate
We currently expect our adjusted effective tax rate to approximate 25% for fiscal 2025.
| TYSON FOODS, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) | |||||||
| Three Months Ended | |||||||
| December 28, 2024 | December 30, 2023 | ||||||
| Sales | $ | 13,623 | $ | 13,319 | |||
| Cost of Sales | 12,528 | 12,496 | |||||
| Gross Profit | 1,095 | 823 | |||||
| Selling, General and Administrative | 515 | 592 | |||||
| Operating Income | 580 | 231 | |||||
| Other (Income) Expense: | |||||||
| Interest income | (25 | ) | (10 | ) | |||
| Interest expense | 120 | 105 | |||||
| Other, net | 7 | (25 | ) | ||||
| Total Other (Income) Expense | 102 | 70 | |||||
| Income before Income Taxes | 478 | 161 | |||||
| Income Tax Expense | 112 | 47 | |||||
| Net Income | 366 | 114 | |||||
| Less: Net Income Attributable to Noncontrolling Interests | 7 | 7 | |||||
| Net Income Attributable to Tyson | $ | 359 | $ | 107 | |||
| Net Income Per Share Attributable to Tyson: | |||||||
| Class A Basic | $ | 1.03 | $ | 0.31 | |||
| Class B Basic | $ | 0.93 | $ | 0.28 | |||
| Diluted | $ | 1.01 | $ | 0.30 | |||
| Dividends Declared Per Share: | |||||||
| Class A | $ | 0.510 | $ | 0.500 | |||
| Class B | $ | 0.459 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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