Springdale-based global food giant, Tyson Foods, released its third quarter 2022 report on Aug. 8, showing a decrease in operating income for the quarter, overall gains and debt reduction for the year, and an improving chicken segment.
“We delivered solid results during the third quarter, focusing on operational excellence and aggressive cost management,” said Donnie King, president and CEO of Tyson Foods. “The turnaround of our chicken business continues, and we continue to be the market share leader in many of our retail business lines.”
Tyson’s operating income for the third quarter was $1,033 million, down 3% from the previous year, with an adjusted operating income of $998 million, down 27% from last year. A view of operating income over the first nine months of the year, in contrast, showed operating income up 47% from the previous year, with adjusted operating income up 15% from last year. In addition, the company reported that it reduced its total debt by approximately $1 billion over the first nine months of the year.
King added, “I’m optimistic about our ability to win with our team members, win with our customers and consumers and win with excellence in execution.”
The company reported decreased sales volume in its beef, pork, chicken and prepared food segments in the third quarter. The report mentioned a variety of contributing factors, including a “challenging labor environment and supply chain constraints.” Also mentioned in the segment reports were inflationary market conditions and costs incurred due to a fire at a production facility.
Despite decreases in the short term, the chicken segment on the whole is showing improvement, with a slight increase in sales volume reported over the first nine months of 2022. Higher feed ingredient costs have contributed to losses compared to this quarter last year.
The report mentions USDA projections for an increase in domestic beef and chicken production in 2022 compared to 2021. As a result, Tyson anticipates “another strong year” in its beef segment. Expected sales for fiscal 2022 are set between $52 and $54 billion, and the company reported that it will “remain disciplined in [its] revenue management” for the rest of the year.
Read the full Tyson report here.