Tyson Foods enjoy a positive kick-off in the financial year. The US giant made public their results achieved in the first quarter of the year: from October to December 2019, revenues reached 10.8 billion dollars (that is, +6%). Therefore, Tyson Foods have augmented both operating profits and net earnings.
Tyson Foods enjoy a good start
As we just said, in the first quarter Tyson Foods revenues amounted to 10.8 billion US dollars. Operating earnings increased by +2%, as they reached 826 million dollars. Net profits went up to 561 million dollars: last year, in the first quarter, they amounted to 552 million dollars. Once again, bovine meat turned out to be the bestseller product, despite a 2% downturn on annual basis. The segment overall revenues amounted to 3.8 billion dollars. The company stressed the fact that such situation mostly depends on the big blaze that partly blew apart a slaughterhouse in Kansas. Yet, the plant is running again now. However, the segment still enjoys a positive profitability thanks to competitive selling prices, driven by heavy demand.
The United States Department of Agriculture (USDA) estimates that in 2020 domestic production of animal proteins (all types of meat therefore) will supposedly increase by 3% to 4% approximately. Taking such forecast into consideration, commented Tyson’s top managers, “export markets will hold manufacturing growth”. More specifically, bovine meat supply will expectedly increase by 1%. Because of it, operating margins are likely to range from 6.5% to 7.5%.
“The accomplishments we achieved in the first quarter are in line with our expectations – remarked in a press release Noel White, Tyson Foods chief executive officer –. As regards bovine and porcine meat segments, we achieved a good performance; meanwhile, we start facing the effects of Africa’s porcine plague”. In White’s opinion, newly implemented commercial development is going to ensure faster access to global markets. Hence, “we can be optimistic about 2020 business year, and further beyond. Our sound position on worldwide market will enable us to benefit from several opportunities – he wrapped up –. We are gearing up to deal with some challenges, including volatility, in the second financial quarter. Despite that, our long-term outlooks keep being positive”.
Picture taken from Tyson foods