The financial results of Tyson Foods’ chicken business segment improved substantially in the first quarter of fiscal year 2022, when compared to the first quarter of the previous year.
The company reported the results of the most recent quarter – which ended on January 1 – on February 7.
The company’s chicken segment saw its operating income reach $140 million, rebounding from a loss of $216 million during the first quarter of 2021. Its sales also saw a huge increase on a year-over-year basis, with sales reach $3.89 billion, more than $1 billion more than the $2.83 billion reported a year ago.
Tyson’s pork and beef segments also saw meaningful improvement in both sales and operating income when compared to one year ago.
“We’re pleased with the results of the first quarter and of the steps that we are taking to improve productivity,” said Donnie King, president and CEO of Tyson Foods. “Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers and winning with excellence. We have the right team who are taking the right actions and as a result, we believe our future is bright.”
According to a press release from Tyson Foods, the sales volume increase in the chicken segment was primarily due to the effects of an inflationary cost environment, while the operating income increased largely because of increased sales volume and higher average sales prices. However, those increases were partially offset by the impact os inflationary market conditions, including $185 million related to higher feed ingredient costs.
Additionally, operating income in the first quarter of fiscal 2022 was impacted by $23 million of insurance proceeds, net of costs incurred related to a fire at a production facility and was impacted in the first quarter of fiscal 2021 by a $320 million loss from the recognition of a legal contingency accrual, the company stated.