Tyson Foods Q2 report shows strong branded food performance
Continues focus on growth strategyTyson Foods reported its second quarter results yesterday. Highlights include sales of $13,133 million flat from prior year. The company also reported a GAAP operating loss of $49 million, down 104% from prior year; Adjusted operating income of $65 million, down 94% from 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,” said Donnie King, president and CEO of Tyson Foods. “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.”
Looking forward, USDA projects domestic beef production to decrease approximately 4% in fiscal 2023 as compared to fiscal 2022. Tyson Foods anticipates an adjusted operating margin of (1)% to 1% in fiscal 2023 as margins are expected to decrease.
USDA projects domestic pork production to be relatively flat in fiscal 2023 as compared to fiscal 2022. As a result, Tyson Foods anticipates adjusted operating margin of (2)% to 0% in fiscal 2023.
USDA projects chicken production will increase approximately 3% in fiscal 2023 as compared to fiscal 2022. Tyson Foods anticipates an adjusted operating margin of (1)% to 1% for fiscal 2023.