Tyson Foods CEO Donnie King said the company has a three-pronged strategy to help it improve its financial situation.
The company on May 8 reported that during the second quarter, which ended on April 1, it experienced a $91 million net loss. Meanwhile, it reported an adjusted operating loss of $166 million for its chicken segment during the quarter.
King, during an earnings call with analysts that day, described those financial results as “weaker than expected.”
But he is optimistic about the prospects of a rebound, as the company is implementing a strategy to lead to continued growth and improved margins. There are three basic pillars to the strategy. Those are:
1. Fresh meat
“We will drive growth in our core protein platform where we harvest and process fresh meat across a diverse portfolio,” said King.
The CEO expects global demand for protein to continue to grow in the coming years because of population growth and increased per capita income.
“Tyson is well positioned with the capacity in place to meet demand,” he said.
2. Branded foods
The company also plans to drive growth through its branded food portfolio.
Tyson Foods has more than 30 prepared food and snack food brands, including the highly recognized Tyson, Jimmy Dean and Hillshire Farm.
“Branded food is our best opportunity to drive faster growth, higher margins and stronger results,” King said.
3. International operations
King said another key component to growth is outside of the United States.
“We will expand internationally where it makes sense. Most of the growth in protein consumption is expected to take place outside of the U.S. We can capture this significant opportunity by scaling our existing business, expanding our customer base and exploring new markets,” King said.
A separate article where King outlined the main challenges that led to a lackluster performance in its chicken segment during the past quarter appears on WATTPoultry.com.
