Tyson Foods Reports Fourth Quarter And Fiscal 2024 Results
SPRINGDALE, Ark., Nov. 12, 2024 (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)
Fourth Quarter
Twelve Months Ended
2024
2023
2024
2023
Sales
$
13,565
$
13,348
$
53,309
$
52,881
Operating Income (Loss)
$
525
$
(463
)
$
1,409
$
(395
)
Adjusted1 Operating Income (non-GAAP)
$
512
$
236
$
1,820
$
933
Net Income (Loss) Per Share Attributable to Tyson
$
1.00
$
(1.31
)
$
2.25
$
(1.87
)
Adjusted1 Net Income Per Share Attributable to Tyson (non-GAAP)
$
0.92
$
0.37
$
3.10
$
1.34
1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this table and throughout this earnings release, adjusted operating income and adjusted net income per share attributable to Tyson (Adjusted EPS) are non-GAAP financial measures. Refer to the end of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP measures.
Fiscal 2024 Highlights
Sales of $53,309 million, up 0.8% from prior year
GAAP operating income of $1,409 million, up $1,804 million from prior year
Adjusted operating income of $1,820 million, up 95% from prior year
GAAP EPS of $2.25, up $4.12 from prior year
Adjusted EPS of $3.10, up 131% from prior year
Total Company GAAP operating margin of 2.6%
Total Company adjusted operating margin (non-GAAP) of 3.4%
Cash provided by operating activities of $2,590 million, up 48% from prior year
Free cash flow (non-GAAP) of $1,458 million, up $1,645 million from prior year
Fourth Quarter Highlights
Sales of $13,565 million, up 1.6% from prior year
GAAP operating income of $525 million, up $988 million from prior year
Adjusted operating income of $512 million, up 117% from prior year
GAAP EPS of $1.00, up $2.31 from prior year
Adjusted EPS of $0.92, up 149% from prior year
Total Company GAAP operating margin of 3.9%
Total Company adjusted operating margin (non-GAAP) of 3.8%
Liquidity of approximately $4.0 billion as of September 28, 2024
"We delivered significant improvement in profitability for the fourth quarter and full year. We also strengthened our financial position, with solid cash flow generation and a substantial reduction of our net leverage ratio," stated Donnie King, President & CEO of Tyson Foods. "Looking ahead, we are optimistic about our outlook and our ability to deliver long-term value to our shareholders. Our multi-protein, multi-channel portfolio, combined with our best-in-class team, iconic brands and focus on operational excellence positions us well for Fiscal 2025 and beyond."
SEGMENT RESULTS (in millions)
Sales
(for the fourth quarter and twelve months ended September 28, 2024, and September 30, 2023)
Fourth Quarter
Twelve Months Ended
Volume
Avg. Price
Volume
Avg. Price
2024
2023
Change
Change2
2024
2023
Change
Change2
Beef
$
5,261
$
5,029
3.7
%
0.9
%
$
20,479
$
19,325
1.6
%
4.4
%
Pork
1,438
1,494
3.2
%
(6.9
)%
5,903
5,768
3.8
%
(0.7
)%
Chicken
4,251
4,155
(0.7
)%
0.2
%
16,425
17,060
(2.2
)%
(2.4
)%
Prepared Foods
2,472
2,502
(1.4
)%
0.2
%
9,851
9,845
0.9
%
(0.8
)%
International/Other
609
636
1.3
%
(5.5
)%
2,353
2,515
3.2
%
(9.6
)%
Intersegment Sales
(466
)
(468
)
n/a
n/a
(1,702
)
(1,632
)
n/a
n/a
Total
$
13,565
$
13,348
0.5
%
0.2
%
$
53,309
$
52,881
,
%
0.6
%
Operating Income (Loss)
(for the fourth quarter and twelve months ended September 28, 2024, and September 30, 2023)
Fourth Quarter
Twelve Months Ended
Operating Margin
Operating Margin
2024
2023
2024
2023
2024
2023
2024
2023
Beef
$
(71
)
$
(323
)
(1.3
)%
(6.4
)%
$
(381
)
$
(91
)
(1.9
)%
(0.5
)%
Pork
(16
)
(11
)
(1.1
)%
(0.7
)%
(40
)
(139
)
(0.7
)%
(2.4
)%
Chicken
409
(267
)
9.6
%
(6.4
)%
988
(770
)
6.0
%
(4.5
)%
Prepared Foods
203
118
8.2
%
4.7
%
879
823
8.9
%
8.4
%
International/Other
—
20
n/a
n/a
(37
)
(218
)
n/a
n/a
Total
$
525
$
(463
)
3.9
%
(3.5) %
$
1,409
$
(395
)
2.6
%
(0.7) %
ADJUSTED SEGMENT RESULTS (in millions)
Adjusted Operating Income (Loss) (Non-GAAP)1
(for the fourth quarter and twelve months ended September 28, 2024, and September 30, 2023)
Fourth Quarter
Twelve Months Ended
Adjusted Operating Margin (Non-GAAP)
Adjusted Operating Margin (Non-GAAP)
2024
2023
20242
20232
2024
2023
20242
20232
Beef
$
(71
)
$
17
(1.3
)%
0.3
%
$
(291
)
$
233
(1.4
)%
1.2
%
Pork
19
(8
)
1.3
%
(0.5
)%
142
(128
)
2.4
%
(2.2
)%
Chicken
356
75
8.4
%
1.8
%
1,015
(77
)
6.2
%
(0.4
)%
Prepared Foods
205
151
8.3
%
6.0
%
905
889
9.2
%
9.0
%
International/Other
3
1
n/a
n/a
49
16
n/a
n/a
Total
$
512
$
236
3.8
%
1.8
%
$
1,820
$
933
3.4
%
1.8
%
2 Average Price Change and Adjusted Operating Margin (Non-GAAP) exclude $118 million and $156 million in the Chicken segment and Total Company for the three and twelve months ended September 30, 2023, respectively, and $45 million in the Pork segment and Total Company for the twelve months ended September 28, 2024 of legal contingency accruals recognized as reductions to Sales.
OUTLOOKFor fiscal 2025, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should increase 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, tax rate and dividends 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.
BeefUSDA projects domestic production will decrease approximately 2% in fiscal 2025 as compared to fiscal 2024. We anticipate adjusted operating loss between $(0.4) billion and $(0.2) billion in fiscal 2025.
PorkUSDA 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.
ChickenUSDA projects chicken production will increase approximately 3% in fiscal 2025 as compared to fiscal 2024. We anticipate adjusted operating income of $1.0 billion to $1.2 billion for fiscal 2025.
Prepared FoodsWe anticipate adjusted operating income of $0.9 billion to $1.1 billion in fiscal 2025.
International/OtherWe anticipate improved results from our foreign operations in fiscal 2025 on an adjusted basis.
Total CompanyWe anticipate total company adjusted operating income of $1.8 billion to $2.2 billion for fiscal 2025.
RevenueWe expect sales to be down 1% to flat in fiscal 2025 as compared to fiscal 2024.
Capital ExpendituresWe 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 ExpenseWe expect net interest expense to approximate $380 million for fiscal 2025.
LiquidityWe expect total liquidity, which was $4.0 billion as of September 28, 2024, to remain above our minimum liquidity target of $1.0 billion.
Free Cash FlowWe expect free cash flow to be greater than dividends for fiscal 2025.
Tax RateWe currently expect our adjusted effective tax rate to be 24% to 25% for fiscal 2025
DividendsEffective November 8, 2024, the Board of Directors increased the quarterly dividend previously declared on August 8, 2024, to $0.50 per share on our Class A common stock and $0.45 per share on our Class B common stock. The increased quarterly dividend is payable on December 13, 2024, to shareholders of record at the close of business on November 29, 2024. The Board also declared on November 8, 2024 a quarterly dividend of $0.50 per share on our Class A common stock and $0.45 per share on our Class B common stock, payable on March 14, 2025, to shareholders of record at the close of business on February 28, 2025. We anticipate the remaining quarterly dividends in fiscal 2025 will be $0.50 and $0.45 per share of our Class A and Class B common stock, respectively. This results in an annual dividend rate in fiscal 2025 of $2.00 for Class A shares and $1.80 for Class B shares, or a 2% increase compared to the fiscal 2024 annual dividend rate.
TYSON FOODS, INC.CONSOLIDATED CONDENSED STATEMENTS OF INCOME(In millions, except per share data)(Unaudited)
Three Months Ended
Twelve Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
Sales
$
13,565
$
13,348
$
53,309
$
52,881
Cost of Sales
12,505
12,889
49,682
50,250
Gross Profit
1,060
459
3,627
2,631
Selling, General and Administrative
535
589
2,218
2,245
Goodwill Impairment
—
333
—
781
Operating Income (Loss)
525
(463
)
1,409
(395
)
Other (Income) Expense:
Interest income
(29
)
(8
)
(89
)
(30
)
Interest expense
130
93
481
355
Other, net
(51
)
8
(75
)
(42
)
Total Other (Income) Expense
50
93
317
283
Income (Loss) before Income Taxes
475
(556
)
1,092
(678
)
Income Tax Expense (Benefit)
111
(113
)
270
(29
)
Net Income (Loss)
364
(443
)
822
(649
)
Less: Net Income (Loss) Attributable to Noncontrolling Interests
7
7
22
(1
)
Net Income (Loss) Attributable to Tyson
$
357
$
(450
)
$
800
$
(648
)
Net Income (Loss) Per Share Attributable to Tyson:
Class A Basic
$
1.03
$
(1.31
)
$
2.31
$
(1.87
)
Class B Basic
$
0.92
$
(1.17
)
$
2.06
$
(1.68
)
Diluted
$
1.00
$
(1.31
)
$
2.25
$
(1.87
)
Dividends Declared Per Share:
Class A
$
0.490
$
0.480
$
1.970
$
1.940
Class B
$
0.441
$
0.432
$
1.773
$
1.746
