20 percent less profit for meat giant Tyson

Tyson Foods, one of the largest meat processors in the United States, saw profits fall 2019% in the third quarter of the broken 20/22 fiscal year to $527 million. The company is suffering from the corona crisis.

Sales fell to a whopping $10 billion between April and July, about 8% less than in the same period last year. The corona measures that the meat processor had to take were a hefty cost of $340 million.

Of this, $114 million was a thank you bonus for the staff who kept the company afloat during the pandemic. This works out to about $500 per employee. Noel White, outgoing CEO of Tyson Foods, reflects on the most volatile and uncertain times in his meat career to date. White will be succeeded by Dean Banks in October.

Beef sales down by a quarter
The beef branch, by far the most important branch for the company, was particularly hard hit. Revenue fell by nearly a quarter to $3,6 billion. Pork sales also fell sharply, by more than 15% to $1,1 billion. The company also bought considerably less poultry meat. Tyson Foods foresees continued volatility in the global meat market for the coming months. Demand will recover in the long run, however, is the idea.

Despite the sharply lower profit, analysts had expected a larger decline. The share price rebounded slightly on Monday (August 3) and rose to over $62 each.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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