Tyson Foods closed out the 2024 fiscal year with a substantially improved financial performance for its chicken business segment.
The company on November 12 reported the results for the fourth quarter and entire fiscal year, both of which ended on September 28.
Tyson’s chicken segment reported an adjusted operating income (AOI) of $356 million for the quarter and $1.015 billion for the full year, compared to $75 million for the fourth quarter and a loss of $77 million for the full year.
The performance during the most recent quarter and fiscal year has been a significant turnaround for Tyson’s chicken business, which has struggled during recent fiscal years.
“While we benefitted from lower grain prices, our focus on the fundamentals of live operations, where hatch and livability again improved year over year in Q4 and plant efficiencies also contributes to the strong results for the quarter and year. It’s clear that we’ve built a fundamentally stronger chicken business, as evidenced by the significant turnaround in AOI performance in the past seven years,” Donnie King, president and CEO of Tyson Foods, said during an earnings call with analysts.
“When our live operations are running well and our demand plan is more accurate, we can operate more efficiently while better servicing our customers.”
Also figuring into the 2024 figures are the impacts of a fire at a company poultry plant in the Netherlands during the first quarter, and the company’s subsequent decision to sell the facility.
Looking forward
King noted that the chicken business can look to “more stable and predictable” results. He also stressed the importance of its commitment to fostering long-term relationships with key customers, helping create a stable demand for Tyson products.
Curt Calaway, chief financial officer of Tyson Foods, added, “We plan to sustain and build on these operational improvements we put in place in fiscal ’24.”
Tyson is also “reinvesting a portion of these benefits” into its value-added chicken portfolio, said Calaway.
