Tyson Foods’ chicken business, after experiencing a major slump during fiscal year 2021, bounced back in 2022.
The company announced its financial results for the full fiscal year on November 14. The fiscal year ended on October 1.
Tyson’s chicken segment for the fourth quarter saw its sales volume increase by 1.1% when compared to the fourth quarter of FY 2021, while the average price improved 18.2%. That translated to net sales of $4.6 billion, compared to net sales of $3.9 billion for the fourth quarter of 2021. For the full year, the chicken segment saw net sales of nearly $17 billion, compared to net sales of $13.7 billion for FY 2021.
The sales volume increased primarily due to improved domestic production partially offset by inventory growth and strategic initiative mix impacts, while the the average sales price increased largely because of the effects of pricing initiatives in an inflationary cost environment.
The gains from increased volumes and prices were partially offset by the impacts of inflationary market conditions including increased supply chain and labor costs, as well as higher feed costs.
These gains helped the company’s chicken business rebound from a loss of $136 million in the fourth quarter of 2021 to an operating income of $340 million in the fourth quarter of 2022. For the full year, the company achieved an operating income of $955 million, bouncing back from an operating loss of $625 million in 2021.
All other Tyson Foods segments – beef, pork, prepared foods and international/other, saw an increase in sales for FY 2022, although the beef and pork segments both saw a small drop in sales during the fourth quarter. The operating income for the prepared foods and international segments improved for the full fiscal year, while they slipped for the beef and pork segments.
“We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein,” Donnie King, president and CEO of Tyson Foods said in a perss release. "Our results were supported by historically strong operations in our beef segment and improved performance in our chicken segment. We also experienced share gains in both our foodservice Focus 6 categories and retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands.”“Our productivity program, announced one year ago and designed to deliver more than $1 billion in recurring annual savings by the end of 2024, has accelerated ahead of schedule and is now expected to be achieved by the end of FY23. The focus of this plan includes operational and functional excellence, digital solutions, and automation and advanced technologies.”