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) |
Second Quarter |
|
Six Months Ended |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Sales |
$ |
13,074 |
|
|
$ |
13,072 |
|
|
$ |
26,697 |
|
|
$ |
26,391 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
$ |
100 |
|
|
$ |
312 |
|
|
$ |
680 |
|
|
$ |
543 |
|
|
Adjusted1 Operating Income (non-GAAP) |
$ |
515 |
|
|
$ |
406 |
|
|
$ |
1,174 |
|
|
$ |
817 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to Tyson |
$ |
0.02 |
|
|
$ |
0.41 |
|
|
$ |
1.03 |
|
|
$ |
0.71 |
|
|
Adjusted1 Net Income Per Share Attributable to Tyson
(non-GAAP) |
$ |
0.92 |
|
|
$ |
0.62 |
|
|
$ |
2.06 |
|
|
$ |
1.31 |
|
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 (loss) 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.
First Six Months Highlights
- Sales of $26,697 million, up
1.2% from prior year; legal contingency accruals
reduced sales by $343 million, or
1.3%
- GAAP operating income of $680 million,
up 25% from prior year
- Adjusted operating income of $1,174
million, up 44% from prior year
- GAAP EPS of $1.03, up 45%
from prior year
- Adjusted EPS of $2.06, up 57%
from prior year
- Total Company GAAP operating margin of
2.5%
- Total Company adjusted operating margin (non-GAAP)
of 4.3%
- Cash provided by operating activities of
$846 million, down $331 million from prior
year
- Free cash flow (non-GAAP) of $382
million, down $174 million from prior
year
Second Quarter Highlights
- Sales of $13,074 million, flat from prior
year; legal contingency accruals reduced sales
by $343 million, or 2.6%
- GAAP operating income of $100 million, down 68% from
prior year
- Adjusted operating income of $515 million, up 27% from
prior year
- GAAP EPS of $0.02, down 95% from prior
year
- Adjusted EPS of $0.92, up 48% from prior
year
- Total Company GAAP operating margin of
0.8%
- Total Company adjusted operating margin (non-GAAP) of
3.8%
- Liquidity of $3.2 billion as of March 29, 2025; reduced
total debt $738 million during the quarter
"We delivered another solid quarter with growth in
both sales and adjusted operating income, driven by strong
execution across the business. Our consistent focus on operational
excellence, winning with customer and consumers, leveraging data
and digital, and enhancing our financial strength has resulted in
four consecutive quarters of year-over-year improvements in our top
and adjusted bottom lines," stated Donnie King, President & CEO
of Tyson Foods. "Looking ahead, our diversified multi-channel,
multi-protein portfolio positions us well to capitalize on consumer
demand for high-quality protein and deliver continued value to our
shareholders."
SEGMENT RESULTS (in millions)
|
Sales |
|
(for the second quarter and six months ended March 29, 2025, and
March 30, 2024) |
|
|
Second Quarter |
Six Months Ended |
|
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
|
|
2025 |
|
|
2024 |
|
Change |
Change2 |
|
2025 |
|
|
2024 |
|
Change |
Change2 |
|
Beef |
$ |
5,196 |
|
$ |
4,954 |
|
(1.4 |
)% |
8.2 |
% |
$ |
10,531 |
|
$ |
9,977 |
|
2.0 |
% |
4.5 |
% |
|
Pork |
|
1,244 |
|
|
1,486 |
|
(3.8 |
)% |
4.3 |
% |
|
2,861 |
|
|
3,003 |
|
(2.1 |
)% |
5.7 |
% |
|
Chicken |
|
4,141 |
|
|
4,065 |
|
3.0 |
% |
(1.1 |
)% |
|
8,206 |
|
|
8,098 |
|
2.2 |
% |
(0.9 |
)% |
|
Prepared Foods |
|
2,396 |
|
|
2,404 |
|
(2.6 |
)% |
2.3 |
% |
|
4,869 |
|
|
4,947 |
|
(2.9 |
)% |
1.3 |
% |
|
International/Other |
|
566 |
|
|
580 |
|
(1.5 |
)% |
(0.9 |
)% |
|
1,150 |
|
|
1,162 |
|
1.4 |
% |
(2.4 |
)% |
|
Intersegment Sales |
|
(469 |
) |
|
(417 |
) |
n/a |
n/a |
|
(920 |
) |
|
(796 |
) |
n/a |
n/a |
|
Total |
$ |
13,074 |
|
$ |
13,072 |
|
— |
% |
2.6 |
% |
$ |
26,697 |
|
$ |
26,391 |
|
0.8 |
% |
1.7 |
% |
|
Operating Income (Loss) |
|
(for the second quarter and six months ended March 29, 2025, and
March 30, 2024) |
|
|
Second Quarter |
Six Months Ended |
|
|
|
|
Operating Margin |
|
|
Operating Margin |
|
|
|
2025 |
|
|
2024 |
|
2025 |
|
2024 |
|
|
2025 |
|
|
2024 |
|
2025 |
|
2024 |
|
|
Beef |
$ |
(258 |
) |
$ |
(35 |
) |
(5.0 |
)% |
(0.7 |
)% |
$ |
(322 |
) |
$ |
(241 |
) |
(3.1 |
)% |
(2.4 |
)% |
|
Pork |
|
(195 |
) |
|
(1 |
) |
(15.7 |
)% |
(0.1 |
)% |
|
(136 |
) |
|
38 |
|
(4.8 |
)% |
1.3 |
% |
|
Chicken |
|
262 |
|
|
158 |
|
6.3 |
% |
3.9 |
% |
|
613 |
|
|
335 |
|
7.5 |
% |
4.1 |
% |
|
Prepared Foods |
|
244 |
|
|
230 |
|
10.2 |
% |
9.6 |
% |
|
453 |
|
|
473 |
|
9.3 |
% |
9.6 |
% |
|
International/Other |
|
47 |
|
|
(40 |
) |
n/a |
n/a |
|
72 |
|
|
(62 |
) |
n/a |
n/a |
|
Total |
$ |
100 |
|
$ |
312 |
|
0.8 |
% |
2.4 |
% |
$ |
680 |
|
$ |
543 |
|
2.5 |
% |
2.1 |
% |
ADJUSTED SEGMENT RESULTS (in
millions)
|
Adjusted Operating Income (Loss)
(Non-GAAP)1 |
|
(for the second quarter and six months ended March 29, 2025, and
March 30, 2024) |
|
|
Second Quarter |
Six Months Ended |
|
|
|
|
Adjusted OperatingMargin (Non-GAAP) |
|
|
Adjusted OperatingMargin (Non-GAAP) |
|
|
|
2025 |
|
|
2024 |
|
20252 |
|
2024 |
|
|
2025 |
|
|
2024 |
|
20252 |
|
2024 |
|
|
Beef |
$ |
(149 |
) |
$ |
(34 |
) |
(2.8 |
)% |
(0.7 |
)% |
$ |
(181 |
) |
$ |
(151 |
) |
(1.7 |
)% |
(1.5 |
)% |
|
Pork |
|
55 |
|
|
33 |
|
3.7 |
% |
2.2 |
% |
|
114 |
|
|
101 |
|
3.7 |
% |
3.4 |
% |
|
Chicken |
|
312 |
|
|
160 |
|
7.5 |
% |
3.9 |
% |
|
680 |
|
|
352 |
|
8.3 |
% |
4.3 |
% |
|
Prepared Foods |
|
244 |
|
|
233 |
|
10.2 |
% |
9.7 |
% |
|
478 |
|
|
497 |
|
9.8 |
% |
10.0 |
% |
|
International/Other |
|
53 |
|
|
14 |
|
n/a |
n/a |
|
83 |
|
|
18 |
|
n/a |
n/a |
|
Total |
$ |
515 |
|
$ |
406 |
|
3.8 |
% |
3.1 |
% |
$ |
1,174 |
|
$ |
817 |
|
4.3 |
% |
3.1 |
% |
2 Average Price Change and Adjusted Operating
Margin (Non-GAAP) for the Beef and Pork segments and Total Company
for the three and six months ended March 29, 2025 exclude the
impact of $93 million, $250 million and $343 million, respectively,
of legal contingency accruals recognized as reductions to
Sales.
OUTLOOK 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 be relatively flat 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 slightly 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, which
includes the $343 million reduction due to the recognition of legal
contingency accruals in the second quarter of fiscal 2025.
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 $3.2 billion as of March 29, 2025, 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 |
|
Six Months Ended |
|
|
March 29, 2025 |
|
March 30, 2024 |
|
March 29, 2025 |
|
March 30, 2024 |
|
Sales |
$ |
13,074 |
|
|
$ |
13,072 |
|
|
$ |
26,697 |
|
|
$ |
26,391 |
|
|
Cost of Sales |
|
12,474 |
|
|
|
12,206 |
|
|
|
25,002 |
|
|
|
24,702 |
|
|
Gross Profit |
|
600 |
|
|
|
866 |
|
|
|
1,695 |
|
|
|
1,689 |
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative |
|
500 |
|
|
|
554 |
|
|
|
1,015 |
|
|
|
1,146 |
|
|
Operating Income |
|
100 |
|
|
|
312 |
|
|
|
680 |
|
|
|
543 |
|
|
Other (Income) Expense: |
|
|
|
|
|
|
|
|
Interest income |
|
(17 |
) |
|
|
(14 |
) |
|
|
(42 |
) |
|
|
(24 |
) |
|
Interest expense |
|
110 |
|
|
|
111 |
|
|
|
230 |
|
|
|
216 |
|
|
Other, net |
|
(23 |
) |
|
|
12 |
|
|
|
(16 |
) |
|
|
(13 |
) |
|
Total Other (Income) Expense |
|
70 |
|
|
|
109 |
|
|
|
172 |
|
|
|
179 |
|
|
Income before Income Taxes |
|
30 |
|
|
|
203 |
|
|
|
508 |
|
|
|
364 |
|
|
Income Tax Expense |
|
16 |
|
|
|
55 |
|
|
|
128 |
|
|
|
102 |
|
|
Net Income |
|
14 |
|
|
|
148 |
|
|
|
380 |
|
|
|
262 |
|
|
Less: Net Income Attributable to Noncontrolling Interests |
|
7 |
|
|
|
3 |
|
|
|
14 |
|
|
|
10 |
|
|
Net Income Attributable to Tyson |
$ |
7 |
|
|
$ |
145 |
|
|
$ |
366 |
|
|
$ |
252 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to Tyson: |
|
|
|
|
|
|
|
|
Class A Basic |
$ |
0.02 |
|
|
$ |
0.42 |
|
|
$ |
1.05 |
|
|
$ |
0.73 |
|
|
Class B Basic |
$ |
0.01 |
|
|
$ |
0.37 |
|
|
$ |
0.94 |
|
|
$ |
0.65 |
|
|
Diluted |
$ |
0.02 |
|
|
$ |
0.41 |
|
|
$ |
1.03 |
|
|
$ |
0.71 |
|
|
Dividends Declared Per Share: |
|
|
|
|
|
|
|
|
Class A |
$ |
0.500 |
|
|
$ |
0.490 |
|
|
$ |
1.010 |
|
|
$ |
0.990 |
|
|
Class B |
$ |
0.450 |
|
|
$ |
0.441 |
|
|
$ |
0.909 |
|
|
$ |
0.891 |
|
|
|
|
|
|
|
|
|
|
|
Sales Growth |
|
— |
% |
|
|
|
|
1.2 |
% |
|
|
|
Margins: (Percent of Sales) |
|
|
|
|
|
|
|
|
Gross Profit |
|
4.6 |
% |
|
|
6.6 |
% |
|
|
6.3 |
% |
|
|
6.4 |
% |
|
Operating Income |
|
0.8 |
% |
|
|
2.4 |
% |
|
|
2.5 |
% |
|
|
2.1 |
% |
|
Net Income Attributable to Tyson |
|
0.1 |
% |
|
|
1.1 |
% |
|
|
1.4 |
% |
|
|
1.0 |
% |
|
Effective Tax Rate |
|
51.0 |
% |
|
|
26.9 |
% |
|
|
25.1 |
% |
|
|
28.0 |
% |
|
|
|
TYSON FOODS, INC. CONSOLIDATED CONDENSED
BALANCE SHEETS (In millions)
(Unaudited) |
|
|
|
|
March 29, 2025 |
|
September 28, 2024 |
|
Assets |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
992 |
|
|
$ |
1,717 |
|
|
Accounts receivable, net |
|
2,385 |
|
|
|
2,406 |
|
|
Inventories |
|
5,395 |
|
|
|
5,195 |
|
|
Other current assets |
|
396 |
|
|
|
433 |
|
|
Total Current Assets |
|
9,168 |
|
|
|
9,751 |
|
|
Net Property, Plant and Equipment |
|
9,278 |
|
|
|
9,442 |
|
|
Goodwill |
|
9,805 |
|
|
|
9,819 |
|
|
Intangible Assets, net |
|
5,740 |
|
|
|
5,875 |
|
|
Other Assets |
|
2,289 |
|
|
|
2,213 |
|
|
Total Assets |
$ |
36,280 |
|
|
$ |
37,100 |
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
Current Liabilities: |
|
|
|
|
Current debt |
$ |
896 |
|
|
$ |
74 |
|
|
Accounts payable |
|
2,350 |
|
|
|
2,402 |
|
|
Other current liabilities |
|
2,248 |
|
|
|
2,311 |
|
|
Total Current Liabilities |
|
5,494 |
|
|
|
4,787 |
|
|
Long-Term Debt |
|
8,172 |
|
|
|
9,713 |
|
|
Deferred Income Taxes |
|
2,240 |
|
|
|
2,285 |
|
|
Other Liabilities |
|
1,843 |
|
|
|
1,801 |
|
|
|
|
|
|
|
Total Tyson Shareholders’ Equity |
|
18,400 |
|
|
|
18,390 |
|
|
Noncontrolling Interests |
|
131 |
|
|
|
124 |
|
|
Total Shareholders’ Equity |
|
18,531 |
|
|
|
18,514 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
$ |
36,280 |
|
|
$ |
37,100 |
|
|
|
|
TYSON FOODS, INC. CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS (In millions)
(Unaudited) |
|
|
|
|
Six Months Ended |
|
|
March 29, 2025 |
|
March 30, 2024 |
|
Cash Flows From Operating Activities: |
|
|
|
|
Net income |
$ |
380 |
|
|
$ |
262 |
|
|
Depreciation and amortization |
|
700 |
|
|
|
722 |
|
|
Deferred income taxes |
|
(41 |
) |
|
|
(21 |
) |
|
Other, net |
|
146 |
|
|
|
142 |
|
|
Net changes in operating assets and liabilities |
|
(339 |
) |
|
|
72 |
|
|
Cash Provided by Operating Activities |
|
846 |
|
|
|
1,177 |
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
Additions to property, plant and equipment |
|
(464 |
) |
|
|
(621 |
) |
|
Purchases of marketable securities |
|
(33 |
) |
|
|
(13 |
) |
|
Proceeds from sale of marketable securities |
|
30 |
|
|
|
12 |
|
|
Acquisition of equity investments |
|
(2 |
) |
|
|
(26 |
) |
|
Other, net |
|
55 |
|
|
|
27 |
|
|
Cash Used for Investing Activities |
|
(414 |
) |
|
|
(621 |
) |
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
Proceeds from issuance of debt |
|
31 |
|
|
|
2,327 |
|
|
Payments on debt |
|
(816 |
) |
|
|
(308 |
) |
|
Proceeds from issuance of commercial paper |
|
— |
|
|
|
1,649 |
|
|
Repayments of commercial paper |
|
— |
|
|
|
(2,240 |
) |
|
Purchases of Tyson Class A common stock |
|
(16 |
) |
|
|
(31 |
) |
|
Dividends |
|
(349 |
) |
|
|
(342 |
) |
|
Stock options exercised |
|
19 |
|
|
|
8 |
|
|
Other, net |
|
(1 |
) |
|
|
(12 |
) |
|
Cash (Used for) Provided by Financing Activities |
|
(1,132 |
) |
|
|
1,051 |
|
|
Effect of Exchange Rate Changes on Cash |
|
(25 |
) |
|
|
2 |
|
|
(Decrease) Increase in Cash and Cash Equivalents and Restricted
Cash |
|
(725 |
) |
|
|
1,609 |
|
|
Cash and Cash Equivalents and Restricted Cash at Beginning of
Year |
|
1,717 |
|
|
|
573 |
|
|
Cash and Cash Equivalents and Restricted Cash at End of Period |
|
992 |
|
|
|
2,182 |
|
|
Less: Restricted Cash at End of Period |
|
— |
|
|
|
— |
|
|
Cash and Cash Equivalents at End of Period |
$ |
992 |
|
|
$ |
2,182 |
|
|
|
|
|
|
Non-GAAP Financial Measures
Adjusted Operating Income (Loss), Adjusted Income
before Income Taxes, Adjusted Income Tax Expense, Adjusted Net
Income Attributable to Tyson and Adjusted EPS, EBITDA, Adjusted
EBITDA, net debt to EBITDA, net debt to Adjusted EBITDA and Free
Cash Flow are presented as supplemental financial measures in the
evaluation of our business that are not required by, or presented
in accordance with GAAP. The non-GAAP financial measures are tools
intended to assist our management and investors in comparing our
performance on a consistent basis for purposes of business
decision-making by removing the impact of certain items that
management believes do not directly reflect our core operations on
an ongoing basis. These non-GAAP measures should not be a
substitute for their comparable GAAP financial measures. Investors
should rely primarily on our GAAP results and use non-GAAP
financial measures only supplementally in making investment
decisions. We believe the presentation of these non-GAAP financial
measures helps management and investors to assess our operating
performance from period to period, including our ability to
generate earnings sufficient to service our debt, enhances
understanding of our financial performance and highlights
operational trends. These measures are widely used by investors and
rating agencies in the valuation, comparison, rating and investment
recommendations of companies. Our calculation of non-GAAP measures
may not be comparable to similarly titled measures reported by
other companies and other companies may not define these non-GAAP
financial measures in the same way, which may limit their
usefulness of comparative measures.
Definitions
EBITDA is defined as net income
before interest, income taxes, depreciation and amortization. Net
debt to EBITDA (Adjusted EBITDA) represents the ratio of our debt,
net of cash, cash equivalents and short-term investments, to EBITDA
(and to Adjusted EBITDA). EBITDA, Adjusted EBITDA, net debt to
EBITDA and net debt to Adjusted EBITDA are presented as
supplemental financial measurements in the evaluation of our
business.
Adjusted EBITDA, Adjusted Operating Income
(Loss), Adjusted Income before Income Taxes, Adjusted Income Tax
Expense, Adjusted Net Income Attributable to Tyson and Adjusted
EPS are defined as EBITDA, Operating Income (Loss), Income
before Income Taxes, Income Tax Expense, Net Income Attributable to
Tyson and diluted earnings per share, respectively, excluding the
impacts of any items that management believes do not directly
reflect our core operations on an ongoing basis.
Free Cash Flow is defined as Cash
Provided by Operating Activities minus payments for Property, Plant
and Equipment.
TYSON FOODS, INC. GAAP
Results to Non-GAAP Results Reconciliations (In
millions, except per share data)
(Unaudited)
|
Results for the second quarter ended March 29,
2025 |
|
|
Sales |
Cost ofSales |
Selling,General andAdministrative |
OperatingIncome |
Other(Income)Expense |
Income beforeIncome Taxes |
Income TaxExpense |
Net IncomeAttributableto Tyson |
EPSImpact |
|
GAAP Results |
|
|
|
$ |
100 |
|
$ |
30 |
$ |
16 |
$ |
7 |
$ |
0.02 |
|
Brand discontinuation |
— |
— |
|
6 |
|
6 |
— |
|
6 |
|
1 |
|
5 |
|
0.02 |
|
Network optimization plan charges |
— |
43 |
|
— |
|
43 |
— |
|
43 |
|
5 |
|
38 |
|
0.10 |
|
Legal contingency accruals |
343 |
— |
|
— |
|
343 |
— |
|
343 |
|
81 |
|
262 |
|
0.73 |
|
Plant closures and disposals |
— |
23 |
|
— |
|
23 |
— |
|
23 |
|
6 |
|
17 |
|
0.05 |
|
Adjusted Non-GAAP Results |
|
|
|
$ |
515 |
|
$ |
445 |
$ |
109 |
$ |
329 |
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
Results for the second quarter ended March 30,
2024 |
|
|
Sales |
Cost ofSales |
Selling,General andAdministrative |
OperatingIncome |
Other(Income)Expense |
Income beforeIncome Taxes |
Income TaxExpense |
Net IncomeAttributableto Tyson |
EPSImpact |
|
GAAP Results |
|
|
|
$ |
312 |
|
$ |
203 |
$ |
55 |
$ |
145 |
$ |
0.41 |
|
The Netherlands facility5 |
— |
54 |
|
— |
|
54 |
— |
|
54 |
|
— |
|
54 |
|
0.15 |
|
Restructuring and related charges |
— |
(3 |
) |
4 |
|
1 |
— |
|
1 |
|
— |
|
1 |
|
— |
|
Plant closures and disposals |
— |
39 |
|
— |
|
39 |
— |
|
39 |
|
19 |
|
20 |
|
0.06 |
|
Adjusted Non-GAAP Results |
|
|
|
$ |
406 |
|
$ |
297 |
$ |
74 |
$ |
220 |
$ |
0.62 |
|
Results for the six months ended March 29,
2025 |
|
|
Sales |
Cost ofSales |
Selling,General andAdministrative |
OperatingIncome |
Other(Income) Expense |
Income beforeIncome Taxes |
Income TaxExpense |
Net IncomeAttributableto Tyson |
EPSImpact |
|
GAAP Results |
|
|
|
$ |
680 |
|
|
$ |
508 |
|
$ |
128 |
|
$ |
366 |
|
$ |
1.03 |
|
|
Production facility fire insurance proceeds, net of costs
incurred4 |
— |
— |
|
— |
|
— |
|
(7 |
) |
|
(7 |
) |
|
(2 |
) |
|
(5 |
) |
|
(0.01 |
) |
|
Brand discontinuation |
— |
— |
|
12 |
|
12 |
|
— |
|
|
12 |
|
|
3 |
|
|
9 |
|
|
0.03 |
|
|
Network optimization plan charges |
— |
114 |
|
2 |
|
116 |
|
— |
|
|
116 |
|
|
22 |
|
|
94 |
|
|
0.26 |
|
|
The Netherlands facility5 |
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
9 |
|
|
(9 |
) |
|
(0.03 |
) |
|
Legal contingency accruals |
343 |
— |
|
— |
|
343 |
|
— |
|
|
343 |
|
|
81 |
|
|
262 |
|
|
0.73 |
|
|
Plant closures and disposals |
— |
23 |
|
— |
|
23 |
|
— |
|
|
23 |
|
|
6 |
|
|
17 |
|
|
0.05 |
|
|
Adjusted Non-GAAP Results |
|
|
|
$ |
1,174 |
|
|
$ |
995 |
|
$ |
247 |
|
$ |
734 |
|
$ |
2.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Results for the six months ended March 30,
2024 |
|
|
Sales |
Cost ofSales |
Selling,General andAdministrative |
OperatingIncome |
Other (Income)Expense |
Income beforeIncome Taxes |
Income TaxExpense |
Net IncomeAttributableto Tyson |
EPSImpact |
|
GAAP Results |
|
|
|
$ |
543 |
|
|
$ |
364 |
|
$ |
102 |
|
$ |
252 |
|
$ |
0.71 |
|
|
Production facility fire insurance proceeds, net of costs
incurred4 |
— |
(24 |
) |
— |
|
(24 |
) |
(3 |
) |
|
(27 |
) |
|
(6 |
) |
|
(21 |
) |
|
(0.06 |
) |
|
The Netherlands facility5 |
— |
80 |
|
— |
|
80 |
|
— |
|
|
80 |
|
|
— |
|
|
80 |
|
|
0.22 |
|
|
Restructuring and related charges |
— |
— |
|
31 |
|
31 |
|
— |
|
|
31 |
|
|
8 |
|
|
23 |
|
|
0.06 |
|
|
Plant closures and disposals |
— |
114 |
|
— |
|
114 |
|
— |
|
|
114 |
|
|
38 |
|
|
76 |
|
|
0.22 |
|
|
Legal contingency accruals |
— |
73 |
|
— |
|
73 |
|
— |
|
|
73 |
|
|
18 |
|
|
55 |
|
|
0.16 |
|
|
Adjusted Non-GAAP Results |
|
|
|
$ |
817 |
|
|
$ |
635 |
|
$ |
160 |
|
$ |
465 |
|
$ |
1.31 |
|
|
|
|
TYSON FOODS, INC. Adjusted Operating
Income (Loss) Non-GAAP Reconciliations (In
millions) (Unaudited) |
|
|
|
Adjusted Operating Income (Loss) |
|
(for the second quarter ended March 29, 2025) |
|
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
|
Reported operating income (loss) |
$ |
(258 |
) |
$ |
(195 |
) |
$ |
262 |
|
$ |
244 |
|
$ |
47 |
|
$ |
100 |
|
|
Add: Brand discontinuation |
|
— |
|
|
— |
|
|
6 |
|
|
— |
|
|
— |
|
|
6 |
|
|
Add: Network optimization plan charges |
|
16 |
|
|
— |
|
|
21 |
|
|
— |
|
|
6 |
|
|
43 |
|
|
Add: Legal contingency accruals |
|
93 |
|
|
250 |
|
|
— |
|
|
— |
|
|
— |
|
|
343 |
|
|
Add: Plant closures and disposals |
|
— |
|
|
— |
|
|
23 |
|
|
— |
|
|
— |
|
|
23 |
|
|
Adjusted operating income (loss) |
$ |
(149 |
) |
$ |
55 |
|
$ |
312 |
|
$ |
244 |
|
$ |
53 |
|
$ |
515 |
|
|
Adjusted Operating Income (Loss) |
|
(for the second quarter ended March 30, 2024) |
|
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
|
Reported operating income (loss) |
$ |
(35 |
) |
$ |
(1 |
) |
$ |
158 |
|
$ |
230 |
|
$ |
(40 |
) |
$ |
312 |
|
|
Add: The Netherlands facility5 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
54 |
|
|
54 |
|
|
Add: Restructuring and related charges |
|
— |
|
|
— |
|
|
(2 |
) |
|
3 |
|
|
— |
|
|
1 |
|
|
Add: Plant closures and disposals |
|
1 |
|
|
34 |
|
|
4 |
|
|
— |
|
|
— |
|
|
39 |
|
|
Adjusted operating income (loss) |
$ |
(34 |
) |
$ |
33 |
|
$ |
160 |
|
$ |
233 |
|
$ |
14 |
|
$ |
406 |
|
|
Adjusted Operating Income (Loss) |
|
(for the six months ended March 29, 2025) |
|
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
|
Reported operating income (loss) |
$ |
(322 |
) |
$ |
(136 |
) |
$ |
613 |
|
$ |
453 |
|
$ |
72 |
|
$ |
680 |
|
|
Add: Brand discontinuation |
|
— |
|
|
— |
|
|
12 |
|
|
— |
|
|
— |
|
|
12 |
|
|
Add: Network optimization plan charges |
|
48 |
|
|
— |
|
|
32 |
|
|
25 |
|
|
11 |
|
|
116 |
|
|
Add: Legal contingency accruals |
|
93 |
|
|
250 |
|
|
— |
|
|
— |
|
|
— |
|
|
343 |
|
|
Add: Plant closures and disposals |
|
— |
|
|
— |
|
|
23 |
|
|
— |
|
|
— |
|
|
23 |
|
|
Adjusted operating income (loss) |
$ |
(181 |
) |
$ |
114 |
|
$ |
680 |
|
$ |
478 |
|
$ |
83 |
|
$ |
1,174 |
|
|
Adjusted Operating Income (Loss) |
|
(for the six months ended March 30, 2024) |
|
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
|
Reported operating income (loss) |
$ |
(241 |
) |
$ |
38 |
|
$ |
335 |
|
$ |
473 |
|
$ |
(62 |
) |
$ |
543 |
|
|
Less: Production facility fire insurance proceeds, net of costs
incurred4 |
|
— |
|
|
— |
|
|
(24 |
) |
|
— |
|
|
— |
|
|
(24 |
) |
|
Add: The Netherlands facility5 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
80 |
|
|
80 |
|
|
Add: Restructuring and related charges |
|
4 |
|
|
1 |
|
|
2 |
|
|
24 |
|
|
— |
|
|
31 |
|
|
Add: Plant closures and disposals |
|
41 |
|
|
34 |
|
|
39 |
|
|
— |
|
|
— |
|
|
114 |
|
|
Add: Legal contingency accruals |
|
45 |
|
|
28 |
|
|
— |
|
|
— |
|
|
— |
|
|
73 |
|
|
Adjusted operating income (loss) |
$ |
(151 |
) |
$ |
101 |
|
$ |
352 |
|
$ |
497 |
|
$ |
18 |
|
$ |
817 |
|
|
|
|
TYSON FOODS, INC. EBITDA and Adjusted
EBITDA Non-GAAP Reconciliations (In
millions) (Unaudited) |
|
|
|
|
Six Months Ended |
|
Fiscal Year Ended |
|
Twelve Months Ended |
|
|
March 29, 2025 |
|
March 30, 2024 |
|
September 28, 2024 |
|
March 29, 2025 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
380 |
|
|
$ |
262 |
|
|
$ |
822 |
|
|
$ |
940 |
|
|
Less: Interest income |
|
(42 |
) |
|
|
(24 |
) |
|
|
(89 |
) |
|
|
(107 |
) |
|
Add: Interest expense |
|
230 |
|
|
|
216 |
|
|
|
481 |
|
|
|
495 |
|
|
Add: Income tax expense |
|
128 |
|
|
|
102 |
|
|
|
270 |
|
|
|
296 |
|
|
Add: Depreciation |
|
566 |
|
|
|
602 |
|
|
|
1,159 |
|
|
|
1,123 |
|
|
Add: Amortization3 |
|
129 |
|
|
|
115 |
|
|
|
229 |
|
|
|
243 |
|
|
EBITDA |
$ |
1,391 |
|
|
$ |
1,273 |
|
|
$ |
2,872 |
|
|
$ |
2,990 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
|
Less: Production facility fire insurance proceeds, net of costs
incurred4 |
$ |
(7 |
) |
|
$ |
(27 |
) |
|
$ |
(104 |
) |
|
$ |
(84 |
) |
|
Add: Brand discontinuation |
|
12 |
|
|
|
— |
|
|
|
8 |
|
|
|
20 |
|
|
Add: Network optimization plan charges |
|
116 |
|
|
|
— |
|
|
|
— |
|
|
|
116 |
|
|
Add: Legal contingency accruals |
|
343 |
|
|
|
73 |
|
|
|
174 |
|
|
|
444 |
|
|
Add: Plant closures and disposals |
|
23 |
|
|
|
114 |
|
|
|
182 |
|
|
|
91 |
|
|
Add: Restructuring and related charges |
|
— |
|
|
|
31 |
|
|
|
31 |
|
|
|
— |
|
|
Add: The Netherlands facility5 |
|
— |
|
|
|
80 |
|
|
|
86 |
|
|
|
6 |
|
|
Less: Depreciation and amortization included in EBITDA
adjustments6 |
|
(51 |
) |
|
|
(92 |
) |
|
|
(129 |
) |
|
|
(88 |
) |
|
Total Adjusted EBITDA |
$ |
1,827 |
|
|
$ |
1,452 |
|
|
$ |
3,120 |
|
|
$ |
3,495 |
|
|
|
|
|
|
|
|
|
|
|
Total gross debt |
|
|
|
|
$ |
9,787 |
|
|
$ |
9,068 |
|
|
Less: Cash and cash equivalents |
|
|
|
|
|
(1,717 |
) |
|
|
(992 |
) |
|
Less: Short-term investments |
|
|
|
|
|
(10 |
) |
|
|
— |
|
|
Total net debt |
|
|
|
|
$ |
8,060 |
|
|
$ |
8,076 |
|
|
|
|
|
|
|
|
|
|
|
Ratio Calculations: |
|
|
|
|
|
|
|
|
Gross debt/EBITDA |
|
|
|
|
3.4x |
|
3.0x |
|
Net debt/EBITDA |
|
|
|
|
2.8x |
|
2.7x |
|
|
|
|
|
|
|
|
|
|
Gross debt/Adjusted EBITDA |
|
|
|
|
3.1x |
|
2.6x |
|
Net debt/Adjusted EBITDA |
|
|
|
|
2.6x |
|
2.3x |
3 Excludes the amortization of debt issuance and
debt discount expense of $5 million for the six months ended
March 29, 2025 and March 30, 2024, and $12 million for
the fiscal year ended September 28, 2024 and the twelve months
ended March 29, 2025 as it is included in interest expense.4
Relates to a fire at a Chicken production facility in the fourth
quarter of fiscal 2021.5 Relates to a fire at our production
facility in the Netherlands in the first quarter of fiscal 2024 and
subsequent decision to sell the facility.6 Removal of accelerated
depreciation of $39 million related to network optimization
plan charges for the six and twelve months ended March 29,
2025, $92 million related to plant closures and disposals for
the six months ended March 30, 2024, $127 million related
to plant closures and disposals for the twelve months ended
September 28, 2024, and $35 million related to plant closures
and disposals for the twelve months ended March 29, 2025 as
they are already included in depreciation expense. Removal of
accelerated amortization of $12 million, $2 million and
$14 million related to brand discontinuation for the six
months ended March 29, 2025, the twelve months ended September
28, 2024 and the twelve months ended March 29, 2025,
respectively, as they are already included in amortization
expense.
|
|
|
TYSON FOODS, INC. Free Cash Flow Non-GAAP
Reconciliation (In millions)
(Unaudited) |
|
|
|
|
Six Months Ended |
|
|
March 29, 2025 |
|
March 30, 2024 |
|
Cash Provided by Operating Activities |
$ |
846 |
|
|
$ |
1,177 |
|
|
Additions to property, plant and equipment |
|
(464 |
) |
|
|
(621 |
) |
|
Free cash flow |
$ |
382 |
|
|
$ |
556 |
|
About Tyson Foods, Inc. Tyson
Foods, Inc. (NYSE: TSN) is a world-class food company and
recognized leader in protein. Founded in 1935 by John W. Tyson, it
has grown under four generations of family leadership. The Company
is unified by this purpose: Tyson Foods. We Feed the World Like
Family™ and has a broad portfolio of iconic products and brands
including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®,
Wright®, State Fair®, Aidells® and ibp®. Tyson Foods is dedicated
to bringing high-quality food to every table in the world, safely,
sustainably, and affordably, now and for future generations.
Headquartered in Springdale, Arkansas, the company had
approximately 138,000 team members on September 28, 2024.
Visit www.tysonfoods.com.
Conference Call Information and Other
Selected Data A conference call to discuss the Company's
financial results will be held at 9 a.m. Eastern Monday, May 5,
2025. A link for the webcast of the conference call is available on
the Tyson Investor Relations website at https://ir.tyson.com. The
webcast also can be accessed by the following direct link:
https://events.q4inc.com/attendee/209117459. For those who cannot
participate at the scheduled time, a replay of the live webcast and
the accompanying slides will be available at https://ir.tyson.com.
A telephone replay will also be available until June 5, 2025, toll
free at 1-877-344-7529, international toll 1-412-317-0088 or Canada
toll free 855-669-9658. The replay access code is 2970433.
Financial information, such as this news release, as well as other
supplemental data, can be accessed from the Company's web site at
https://ir.tyson.com.
Forward-Looking Statements
Certain information in this release constitutes forward-looking
statements as contemplated by the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include, but
are not limited to, current views and estimates of our outlook for
fiscal 2025, other future economic circumstances, industry
conditions in domestic and international markets, our performance
and financial results (e.g., debt levels, return on invested
capital, value-added product growth, capital expenditures, tax
rates, access to foreign markets and dividend policy). These
forward-looking statements are subject to a number of factors and
uncertainties that could cause our actual results and experiences
to differ materially from anticipated results and expectations
expressed in such forward-looking statements. We wish to caution
readers not to place undue reliance on any forward-looking
statements, which are expressly qualified in their entirety by this
cautionary statement and speak only as of the date made. We
undertake no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Among the factors that may cause actual results and experiences to
differ from anticipated results and expectations expressed in such
forward-looking statements are the following: (i) global pandemics
have had, and may in the future have, an adverse impact on our
business and operations; (ii) the effectiveness of financial
excellence programs; (iii) access to, and inputs from, foreign
markets together with foreign economic conditions, including
currency fluctuations, import/export restrictions and foreign
politics; (iv) cyber attacks, other cyber incidents, security
breaches or other disruptions of our information technology
systems; (v) risks associated with our failure to consummate
favorable acquisition transactions or integrate certain
acquisitions’ operations; (vi) the Tyson Limited Partnership’s
ability to exercise significant control over the Company; (vii)
fluctuations in the cost and availability of inputs and raw
materials, such as live cattle, live swine, feed grains (including
corn and soybean meal) and energy; (viii) market conditions for
finished products, including competition from other global and
domestic food processors, supply and pricing of competing products
and alternative proteins and demand for alternative proteins; (ix)
outbreak of a livestock disease (such as African swine fever (ASF),
avian influenza (AI) or bovine spongiform encephalopathy (BSE)),
which could have an adverse effect on livestock we own, the
availability of livestock we purchase, consumer perception of
certain protein products or our ability to conduct our operations;
(x) changes in consumer preference and diets and our ability to
identify and react to consumer trends; (xi) effectiveness of
advertising and marketing programs; (xii) significant marketing
plan changes by large customers or loss of one or more large
customers; (xiii) our ability to leverage brand value propositions;
(xiv) changes in availability and relative costs of labor and
contract farmers and our ability to maintain good relationships
with team members, labor unions, contract farmers and independent
producers providing us livestock; (xv) issues related to food
safety, including costs resulting from product recalls, regulatory
compliance and any related claims or litigation; (xvi) compliance
with and changes to regulations and laws (both domestic and
foreign), including changes in accounting standards, tax laws,
environmental laws, agricultural laws and occupational, health and
safety laws; (xvii) the effect of climate change and any legal or
regulatory response thereto; (xviii) adverse results from
litigation; (xix) risks associated with leverage, including cost
increases due to rising interest rates or changes in debt ratings
or outlook; (xx) impairment in the carrying value of our goodwill
or indefinite life intangible assets; (xxi) our participation in a
multiemployer pension plan; (xxii) volatility in capital markets or
interest rates; (xxiii) risks associated with our commodity
purchasing activities; (xxiv) the effect of, or changes in, general
economic conditions; (xxv) impacts on our operations caused by
factors and forces beyond our control, such as natural disasters,
fire, bioterrorism, pandemics, armed conflicts or extreme weather;
(xxvi) failure to maximize or assert our intellectual property
rights; (xxvii) effects related to changes in tax rates, valuation
of deferred tax assets and liabilities, or tax laws and their
interpretation; and (xxviii) the other risks and uncertainties
detailed from time to time in our filings with the Securities and
Exchange Commission, including those included under the captions
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our most recent
Annual Report on Form 10-K and Quarterly reports on Form 10-Q.
|
Media Contact: Laura Burns, 479-713-9890 Investor Contact: Sean
Cornett, 479-466-0401 |
Source: Tyson Foods, Inc. Category: IR, Newsroom |
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