Corporate Profiles - 2023 - 110

COMPANY overview
Tyson Foods, Inc.
N
o safe haven for Tyson Foods, Inc. was
evident amid tough market conditions
during the past year. Three of the company's
four business units - Chicken, Beef and
Pork - faced pressure all year.
As a result, the company took several steps
to streamline the business. Most notably, Tyson
Foods has closed or is in the process of closing
six chicken processing plants. In March, plans
were revealed to shutter plants in Van Buren,
Ark., and Glen Allen, Va. Then, in August, the
company said it planned to close four more
chicken plants in North Little Rock, Ark.; Corydon,
Ind.; Dexter, Mo.; and Noel, Mo.
The closings were part of a strategy to improve
Tyson's Chicken segment's operating income
and a response to the expectation overall
Chicken, Beef and Pork business units under
pressure due to difficult market conditions
Pork business unit performance was hindered
by weak consumer demand. During the
third quarter of fiscal 2023, the Pork unit saw
sales fall 18% to $1.32 billion and recorded an
operating loss of $74 million. The results compared
unfavorably to the previous year when
the Pork unit had sales of $1.61 billion and an
operating income of $25 million. Mr. King said
market pressures in live operations, lower exports
and a fire at a processing plant in Madison,
Neb., weighed on Pork unit results.
Tyson's Prepared Foods unit continued to
be a bright spot for the company, with fiscal
2023 third-quarter operating income topping
$206 million, compared with $186 million in
the same quarter of fiscal 2022. Segment sales
lagged slightly at $2.38 billion compared with
$2.44 billion in 2022.
Year-to-date sales were leading last year's
with $7.34 billion through the most recent nine
months compared with $7.17 billion during the
same time last year.
Categorizing Prepared Foods as a growth
Chief executive officer -
Donnie King
company chicken production would decrease
3.5% when compared to 2022.
Additionally, Tyson Foods pivoted from its " no
antibiotics ever " production program to emphasizing
it was not using antibiotics important to
human medicine. Donnie King, president and
chief executive officer, said the change was
prompted by production issues that led to a
lack of consistency in chickens being processed.
Cattle herd liquidation in the United States
led to lower supply, which pushed cattle prices
higher and adversely affected Tyson's Beef
business unit performance.
110 \ October 2023
pillar, Mr. King said in August the unit delivered
better-than-anticipated margins, at 8.6%,
higher than any other business unit for the
quarter and 1% higher than last year's third
quarter. Stewart Glendinning, president of Prepared
Foods since October of 2022, planned
to resigned in September. Melanie Boulden
was promoted to the position as well as chief
growth officer.
For the first nine months of fiscal 2023,
ended July 1, Tyson Foods recorded a loss of
$198 million, which compared unfavorably to
the same period of the previous year when the
company earned $2.7 billion, equal to $7.64
per share on the common stock.
Sales for the period were flat at $39.53 billion
in fiscal 2023 compared with $39.55 billion
the year before.
The difficult market conditions were reflected
in the company's stock price, which fell 30%
from $75.56 per share at the close of business
on Sept. 12, 2022, to $52.38 per share at the
close of business on Sept. 8, 2023. CP
Tyson Foods, Inc.
net income
(fiscal years ended in September)
in millions
2022
2021
2020
$3,238
$3,047
$2,061
Source: Tyson Foods, Inc.
Tyson Foods, Inc.
net sales
(fiscal years ended in September)
in millions
2022
2021
2020
$53,282
$47,049
$43,185
Source: Tyson Foods, Inc.
Tyson Foods, Inc.
share price
Source: New York Stock Exchange
$42
$50
$58
$66
$74
Sept. Nov.
2022
TYSON FOODS, INC.
Jan.
2023
Sept. 15, 2023 = $54.54
HIGH =
Sept. 19, 2022 = $70.07
LOW =
May 10, 2023 = $46.43
March May
July
Sept.
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Corporate Profiles - 2023

Table of Contents for the Digital Edition of Corporate Profiles - 2023