Tyson Foods nearly tripled its net earnings and saw a meaningful increase in net sales during the first quarter of fiscal year 2018.
The company released its quarterly financial results on February 8.
The company’s net income for the quarter was $1.6 billion, compared to a net income of 594 million for the same quarter of the 2017 fiscal year. In addition, Tyson Foods’ net sales for the quarter were $10.2 billion, compared to $9.2 billion for the first quarter of fiscal year 2017.
“At Tyson Foods, we’re creating a modern food company focused on protein,” Tom Hayes, Tyson Foods president and chief executive officer, stated in a press release. “Building on our momentum from a record year in fiscal ’17, we’re off to a strong start in fiscal ’18. We delivered record adjusted EPS and our second-strongest quarter of operating income in Q1, with operating cash flows of more than $1.1 billion.”
Tyson Foods also improved its financial situation by reducing its debt by more than $500 million.
Strong performance in each segment
Tyson Foods saw sales increase during the quarter for each of its four segments: chicken, pork, beef and prepared foods, although its pork volume declined by 2.6 percent on a year-over-year basis.
The chicken and prepared foods segments both saw improved operating income for the quarter. Both segments saw an increase in volume on a year-over-year basis, following the June 2017 acquisition of AdvancePierre Foods.
For the chicken segment, volume was up due to strong demand for Tyson chicken products along with the incremental volume from the AdvancePierre acquisition. Average sales price increased due to sales mix changes. Operating income benefited from $14 million of Financial Fitness Program cost savings, the positive incremental impact of AdvancePierre and slightly lower feed costs, partially offset by increased labor, freight and growout expenses.
Sales volume for the prepared foods segment increased primarily from incremental volumes from the AdvancePierre acquisition. Average sales price increased from higher input costs of $45 million and product mix which was positively impacted by the acquisition of AdvancePierre. Operating income increased due to $24 million of Financial Fitness Program cost savings, improved mix and the positive incremental impact of AdvancePierre, partially offset by higher input and freight costs.
“The strength and diversity of our portfolio are evident,” said Hayes. “We drove solid results in each of our segments - beef, pork, chicken and prepared foods. We grew topline sales, with our retail and food service sales both outpacing the industry. We’re encouraged by the position we’re in today.”
