Q3 2024 Tyson Foods Inc Earnings Call Transcript
Key Points
- Tyson Foods Inc (TSN) reported a significant increase in adjusted operating income (AOI) by more than $300 million, growing nearly 175% year-over-year.
- The company achieved the highest profitability in the last seven quarters, with adjusted EPS increasing by more than $0.70 or almost 500%.
- The chicken segment delivered its best third-quarter profit in eight years, with segment AOI exceeding $300 million.
- Year-to-date free cash flow improved by more than $1.2 billion compared to last year, driven by improved profitability and effective capital management.
- Tyson Foods Inc (TSN) raised its AOI guidance for the chicken segment for the third consecutive quarter, now expecting $850 million to $950 million.
- The beef segment faced challenges due to elevated cattle costs, leading to compressed spreads and a projected AOI loss between $400 million and $300 million.
- Despite overall revenue growth, the chicken segment saw a 3.2% decline in sales due to lower input costs and pricing.
- The company continues to navigate a challenging environment for beef, with no clear signs of meaningful herd rebuilding.
- Higher raw material costs in the prepared foods segment partially offset the benefits of operational efficiencies and top-line growth.
- The international segment faced macroeconomic and geopolitical headwinds, impacting its performance despite recent investments.
Good day, and welcome to the Tyson Foods third-quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Sean Cornett, VP, Investor Relations. Please go ahead.
Good morning, and welcome to Tyson Foods' fiscal third quarter 2024 earnings conference call. On this call, Tyson's President and Chief Executive Officer, Donnie King; and Interim Chief Financial Officer, Curt Calaway, will provide some prepared remarks followed by Q&A. Additionally, joining us today are Brady Stewart, Group President, Beef, Pork and Chief Supply Chain Officer; Melanie Boulden, Group President, Prepared Foods and Chief Growth Officer; Wes Morris, Group President Poultry; and Devin Cole, President, International and Golden McDonaldâs.
We have also provided a supplemental presentation, which may be referenced on today's call and is available on Tyson's Investor Relations website and via the link in our website.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
