Tyson Foods’ first quarter of the 2023 fiscal year saw a significant decline in net income when compared to the first quarter of 2022, while operating income for four out of five business segments also dropped.
“We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability,” Tyson Foods CEO Donnie King said in a press release. “We expect to improve our performance through the back half of fiscal 2023 and into the future, as we strive to execute with excellence and work to become best in class in our industry.”
While companywide net sales rose on a year-over-year basis from $12.9 billion to $13.26 billion, the company’s net income declined from $3.07 million to $880,000 for the quarter.
Operating income by business segment
Prepared Foods was the only business segment to show an increase in operating income, achieving $258 million for the quarter, compared to $186 million during the first quarter of FY 2022.
The other segments’ incomes for the first quarter of 2022 and year-ago comparisons are:
- Chicken achieved an operating income of $69 million, down from the year-ago operating income of $140 million.
- Pork experienced a loss of $21 million, compared to an operating income of $164 million in the first quarter of fiscal year 2022.
- Beef recorded an operating income of $166 million, down from the $956 million one year ago.
- International/Other experienced a $5 million loss, compared to an operating income of $9 million in the first quarter of 2022.
Sales by business segment
Three business units increased sales for the first quarter: Chicken, Prepared Foods and International/Other, while beef and pork saw a decline in sales.
Broken down by segment, these are the sales numbers for the quarter, and the year-ago comparisons:
- Chicken achieved sales of $4.3 billion, up from year-ago sales of $3.9 billion.
- Beef achieved sales of $4.7 billion, down from $5 billion during the first quarter of 2022.
- Sales for pork dropped to $1.5 billion from $1.6 billion one year ago.
- Prepared Foods sales increased to $2.5 billion from $2.3 billion.
- International/other saw sales rise to 612 million, up from 550 million.
