Meat giant Tyson sees profit double

The sales figures of the American meat giant Tyson Foods have been hit hard by the labor shortage and lower animal numbers. Turnover and profit, on the other hand, profit from the shortage on the meat market.

Revenue rose more than 10% to $12,8 billion in its fiscal fourth quarter, which runs from July through September. Profit even doubled (+103%) and rose to $1,358 billion. Tyson Foods owes the good benefits to the record high meat prices in the United States.

Sales volumes down
The increase in turnover is remarkable at first, given the slowdown in sales volumes. Pork volumes sold in the fourth quarter were 17,7% lower than in the same period last year. The volumes of beef sold fell by 15,4%, while the sales of poultry meat decreased by 5,9%. It should be noted that the fourth quarter last year had an extra week.

But even if this is corrected for, sales in 2021 will lag considerably. In their own words, this is due to lower animal numbers in the United States and a tight labor market. The fact that turnover is considerably higher is due to the meat prices that have overall have increased by 22,5%.

Stock market listing on the rise
Fiscal year 2021 has ended with the completion of the fourth quarter. Revenue is $47 billion, compared to $43 billion in 2020. Profits increased nearly 50% to $3,06 billion. The good results are reflected in the stock price of Tyson Foods. The stock is already up 30% this year to $84.

The management is positive for fiscal year 2022. Sales are estimated to be between $49 million and $51 billion, as meat prices are likely to persist at high price levels. In addition, an austerity plan is ready with the aim of sanitizing $2024 billion annually by 1.

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

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.