Dive Brief:
- Tyson Foods reported record sales in its first-quarter earnings results, according to a company release. Net income increased $1.59 per share, up to $593 million. New income increased 27% to $982 million.
- Total company sales volume increased 2.4% year-over year, to $9.9 billion, with all segments sales volume up from the same time period last year.
- Tysons also saw record operating cash flows of more than $1.1 billion.
Dive Insight:
With the U.S. Department of Agriculture forecasting domestic protein production growth of somewhere between 2% to 3% in 2017, Tyson's numbers should stay strong throughout the year.
Tyson’s recent acquisition of Hillshire Brands and its strategy to look to “protein-centric, branded, value-added” products and categories is paying off, with expectations of earning around $675 million from these acquisitions in 2017.
Tom Hayes, Tyson Foods’s president and chief executive officer, announced on the earnings call that the large returns seen from the Beef and Pork segments are providing fuel for growth in the company’s value-added Chicken and Prepared Foods segments.
“Due to our outstanding performance in Beef and Pork and strong market conditions in the first quarter, we are raising our annual earnings guidance to $4.90 to $5.05 per share,” he said. “We expect the earnings cadence for the remainder of the fiscal year to follow more normal patterns, including the seasonality typical of our second quarter.”
The company is also working to expand its Prepared Foods category, which saw an increase in sales volume.