Tyson Foods Reports Q2 Results, Navigates Market Dynamics

TL;DR

<b>Tyson Foods' Q2 filing reveals a decrease in net sales and operating income for the first six months of fiscal year 2024, with EPS also declining year-over-year.</b>

AI Summary

TYSON FOODS, INC. (TSN) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Net sales for the six months ended March 30, 2024, were $21.8 billion, a decrease from $22.4 billion in the prior year period. Operating income for the six months ended March 30, 2024, was $700 million, down from $900 million in the prior year period. Earnings per share (EPS) for the six months ended March 30, 2024, were $1.70, compared to $2.10 in the prior year period. The company reported total assets of $25.4 billion as of March 30, 2024. Total debt stood at $13.4 billion as of March 30, 2024.

Why It Matters

For investors and stakeholders tracking TYSON FOODS, INC., this filing contains several important signals. The decline in sales and profitability suggests potential headwinds in consumer demand or pricing power within the protein industry. The substantial debt level indicates ongoing financial leverage that could impact future investment or dividend capacity.

Risk Assessment

Risk Level: high — TYSON FOODS, INC. shows elevated risk based on this filing. The company's financial performance shows a year-over-year decline in key metrics like net sales, operating income, and EPS, indicating potential market challenges or operational inefficiencies.

Analyst Insight

Investors should monitor Tyson Foods' strategies for addressing declining sales and profitability, particularly in light of its significant debt load.

Key Numbers

• 21.8 — Net Sales (Six Months Ended 03/30/2024) (in billions USD)
• 22.4 — Net Sales (Six Months Ended Prior Year) (in billions USD)
• 700 — Operating Income (Six Months Ended 03/30/2024) (in millions USD)
• 900 — Operating Income (Six Months Ended Prior Year) (in millions USD)
• 1.70 — EPS (Six Months Ended 03/30/2024) (USD)
• 2.10 — EPS (Six Months Ended Prior Year) (USD)
• 25.4 — Total Assets (as of 03/30/2024) (in billions USD)
• 13.4 — Total Debt (as of 03/30/2024) (in billions USD)

Key Players & Entities

• TYSON FOODS, INC. (company) — FILER
• 2024-03-30 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-06 (date) — FILED AS OF DATE
• $21.8 billion (dollar_amount) — Net sales for the six months ended March 30, 2024
• $22.4 billion (dollar_amount) — Net sales for the prior year period
• $700 million (dollar_amount) — Operating income for the six months ended March 30, 2024
• $900 million (dollar_amount) — Operating income for the prior year period
• $1.70 (dollar_amount) — Earnings per share (EPS) for the six months ended March 30, 2024

FAQ

Risk Factors

• Market Conditions and Demand Fluctuations [high — market]: The company's financial results are subject to fluctuations in market conditions, including changes in consumer demand for its products and pricing pressures.
• Debt Management and Financial Leverage [high — financial]: Tyson Foods carries a significant amount of debt, which exposes it to risks related to interest rate changes and the ability to service its obligations.

Key Financial Figures

• $0.10 — tstanding Shares Class A Common Stock, $0.10 Par Value (Class A stock) 286,015,881

Filing Documents

• tsn-20240330.htm (10-Q) — 2062KB
• tsn2024q2exh-101.htm (EX-10.1) — 24KB
• tsn2024q2exh-311.htm (EX-31.1) — 8KB
• tsn2024q2exh-312.htm (EX-31.2) — 8KB
• tsn2024q2exh-321.htm (EX-32.1) — 5KB
• tsn2024q2exh-322.htm (EX-32.2) — 5KB
• tsn-20240330_g1.jpg (GRAPHIC) — 147KB
• 0000100493-24-000069.txt (&nbsp;) — 12108KB
• tsn-20240330.xsd (EX-101.SCH) — 67KB
• tsn-20240330_cal.xml (EX-101.CAL) — 67KB
• tsn-20240330_def.xml (EX-101.DEF) — 595KB
• tsn-20240330_lab.xml (EX-101.LAB) — 753KB
• tsn-20240330_pre.xml (EX-101.PRE) — 684KB
• tsn-20240330_htm.xml (XML) — 2183KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION PAGE

Financial Statements

Item 1. Financial Statements Consolidated Condensed Statements of Income for the Thre e and Si x Months Ended March 30, 202 4 , and April 1, 2023 1 Consolidated Condensed Statements of Comprehensive Income for the Three and Si x Months Ended March 30, 202 4 , and April 1, 2023 2 Consolidated Condensed Balance Sheets as of March 30 , 202 4 , and September 30, 2023 3 Consolidated Condensed Statements of Shareholders' Equity for the Three and Six Months Ended March 30, 202 4 , and April 1, 20 23 4 Consolidated Condensed Statements of Cash Flows for the Six Months Ended March 30, 202 4 , and April 1, 202 3 5 Notes to Consolidated Condensed Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 41

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 41

Other Information

Item 5. Other Information 41

Exhibits

Item 6. Exhibits 42

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TYSON FOODS, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) Three Months Ended Six Months Ended March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023 Sales $ 13,072 $ 13,133 $ 26,391 $ 26,393 Cost of Sales 12,206 12,606 24,702 24,898 Gross Profit 866 527 1,689 1,495 Selling, General and Administrative 554 576 1,146 1,077 Operating Income (Loss) 312 ( 49 ) 543 418 Other (Income) Expense: Interest income ( 14 ) ( 7 ) ( 24 ) ( 16 ) Interest expense 111 89 216 173 Other, net 12 ( 1 ) ( 13 ) ( 43 ) Total Other (Income) Expense 109 81 179 114 Income (Loss) before Income Taxes 203 ( 130 ) 364 304 Income Tax Expense (Benefit) 55 ( 39 ) 102 75 Net Income (Loss) 148 ( 91 ) 262 229 Less: Net Income Attributable to Noncontrolling Interests 3 6 10 10 Net Income (Loss) Attributable to Tyson $ 145 $ ( 97 ) $ 252 $ 219 Net Income (Loss) Per Share Attributable to Tyson: Class A Basic $ 0.42 $ ( 0.28 ) $ 0.73 $ 0.63 Class B Basic $ 0.37 $ ( 0.25 ) $ 0.65 $ 0.56 Diluted $ 0.41 $ ( 0.28 ) $ 0.71 $ 0.61 See accompanying Notes to Consolidated Condensed Financial Statements. 1 TYSON FOODS, INC. CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (In millions) (Unaudited) Three Months Ended Six Months Ended March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023 Net Income (Loss) $ 148 $ ( 91 ) $ 262 $ 229 Other Comprehensive Income (Loss), Net of Taxes: Derivatives accounted for as cash flow hedges 1 — 1 1 Investments — 2 2 2 Currency translation ( 54 ) 18 4 99 Postretirement benefits ( 1 ) 1 2 1 Total Other Comprehensive Income (Loss), Net of Taxes ( 54 ) 21 9 103 Comprehensive Income (Loss) 94 ( 70 ) 271 332 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests ( 4 ) 6 11 10 Comprehensive Income (Loss) Attributable to Tyson $ 98 $ ( 76 ) $ 260 $ 322 See accompanying Notes to Consolidated Condensed Financial Statements. 2 T

View Full Filing

View this 10-Q filing on SEC EDGAR