Tyson Foods, one of the world’s largest food companies, reported increased sales, volume growth, and strong operating outcomes in its third quarter.
Compared to the last year's third quarter, the company's sales were up by nearly $2.5 billion, its GAAP operating income was up 37%, and its net income rose by $227 million. Further, Tyson reduced its total debt by approximately $1 billion.
The company’s gains occurred despite direct incremental expenses incurred as a result of COVID-19, which totaled $55 million for the third quarter and $270 million for the year. These costs were partially offset by CARES Act credits, the company said.
The report highlights that in the third quarter, Tyson's EPS (GAAP) were up 42% while their adjusted EPS (non-GAAP) were up 93% compared to 2020.
The company’s sales volumes for beef, pork, and chicken all increased as global demand for proteins was strong and production inefficiencies associated with COVID-19 in 2020 were reduced.
Compared to 2020, Tyson’s domestic production of beef is expected to increase by approximately 3%, domestic pork production is expected to hold relatively steady, and chicken production is expected to drop less than 1% .
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The food company predicts that they will hit around $46 to $47 billion in revenue in fiscal 2021.
“We delivered a strong performance in a strong protein market,” said Donnie King, president and CEO of Tyson. “With trusted brands that met strong consumer demand, we have delivered 12 consecutive quarters of share gains in core business lines at retail. Our foodservice volume improved as the restaurant industry began to reopen and recover ... And we continued to build financial strength, reducing our debt and investing in future growth by laying out plans to expand our business, both to address capacity constraints and meet growing demand.”
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