News Meat
Tyson also sees margins on meat shooting up
The American Tyson Foods has seen its margins improve strongly in the first quarter of the current financial year. Although the company warned last May of pressure on the result due to cost increases, rising meat prices have caused the result to rise sharply.
Turnover increased by no less than 24% and amounted to $12,93 billion. That was also higher than the analysts' average forecast of $12,18 billion. Tyson's net income was $1,12 billion. That put net income about $650 million, or 140% higher than a year earlier.
Volume stable
The turnover and profit increase is almost entirely due to higher selling prices. The volume sold remained virtually unchanged. Rising prices for the beef sold (+31,7%) in particular benefited the company. However, realized prices for poultry meat (+19,9%) and pork (+12,8%) also rose sharply. Operating margins averaged 11,3% and were highest for beef: 19,1%. Tyson also realized strong margins of around 10,1% on pork.
Tyson forecasts revenue for fiscal year 2022 at the high end of the $49 billion to $51 billion range previously mentioned. The company assumes the flat development of meat production in the United States in 2022, according to the forecast of the United States Department of Agriculture. Beef production will shrink 1%, pork production 2%. The total production of poultry meat will increase by 2%.
Steve Wissink
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