Tyson Foods this week announced Q2 2023 earnings results, including increased sales and share repurchases.
The company reported sales of $26.393 billion over the first six months of FY2023, up 1.3 percent from the prior year. Sales in second quarter of $13.133 billion were roughly flat from the prior year.
“While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” Tyson Foods CEO Donnie King said. “We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them. Through our growth strategy, focus on margin improvement, and proven leadership team, I am confident in our ability to capture the opportunities in front of us and create long-term value for customers, team members, and shareholders.”
Tyson noted that USDA is projecting chicken production to increase three percent in FY2023 as compared to FY2022. The Prepared Foods Segment anticipated an adjusted operating margin of eight to 10 percent in FY2023 “driven by volume growth, productivity, and disciplined revenue management.”
The company also announced approximately $2.2 billion in liquidity, above the minimum target of $1 billion, and an agreement from May 3 for a new $1.75 billion term loan facility. The overall adjusted effective tax rate is expected to be approximately 22 percent in FY2023.
“Beginning in fiscal 2022, we launched a new productivity program,” the company said, “which is designed to drive a better, faster, and more agile organization that is supported by a culture of continuous improvement and faster decision making. We targeted an aggregate $1 billion in productivity savings by the end of fiscal 2024 relative to fiscal 2021 cost baseline. We realized more than $700 million of productivity savings in fiscal 2022, which partially offset the impacts of inflationary market conditions, and we have surpassed our aggregate $1 billion target as of the end of the second quarter of fiscal 2023, more than a year ahead of our plan.”
