Shares of Tyson Foods, Inc. (NYSE: TSN) were down 2% on Monday following its latest earnings announcement. The food company delivered mixed results for the fourth quarter of 2022, as revenue exceeded expectations while adjusted EPS fell short of estimates. Here’s a look at what the company has outlined for the upcoming year:
Revenue
Tyson reported total sales of $13.7 billion for the fourth quarter of 2022, which was up 7% from the same period a year ago and ahead of market estimates. The top line growth was driven by momentum in the Chicken, Prepared Foods and International segments. For the full year of 2023, Tyson expects sales to range between $55-57 billion.
Segment performance
Tyson reported sales of $4.8 billion in the Beef segment in Q4, which was down 4% from the year-ago quarter. Sales volume increased during the quarter while average sales price decreased due to lower demand for premium cuts of beef. For fiscal year 2023, Tyson expects adjusted operating margin for the segment to be at or below the low end of its long-term range of 5-7%.
Net sales in the Pork segment declined 2% year-over-year to $1.60 billion in Q4. For FY2023, adjusted operating margin is expected to be 2-4% in this segment. Sales in the Chicken segment increased 21% to $4.6 billion in Q4, with average price rising 18.2% and volume gaining 1.1%. Adjusted operating margin is expected to be 6-8% for this segment in FY2023.
Sales in the Prepared Foods segment increased 14% YoY to $2.5 billion in Q4. Sales volume remained relatively flat during the quarter while average price increased 11.4%. The company expects adjusted operating margin of 8-10% for this segment in FY2023.
Productivity savings
At the start of fiscal year 2022, Tyson launched a new productivity program and set a target for $1 billion in savings by the end of fiscal year 2024, including over $400 million in FY2022. The company has realized more than $700 million in productivity savings in FY2022 and now believes it can exceed its $1 billion target in FY2023.
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