Tyson Foods Q3 Earnings Show Sales Dip, Profit Squeeze

TL;DR

**Tyson Foods Q3: Sales down, profits crushed. Watch out.**

AI Summary

Tyson Foods, Inc. filed its 10-Q for the period ending June 29, 2024. The company reported net sales of $13.7 billion for the first nine months of fiscal year 2024, a slight decrease from the prior year. Operating income for the same period was $468 million, down from $1.1 billion in the prior year, reflecting challenges in the company's operations.

Why It Matters

This filing provides insight into Tyson Foods' financial performance, indicating potential challenges in the food processing industry and impacting investor confidence.

Risk Assessment

Risk Level: medium — The decrease in operating income and sales suggests potential headwinds for Tyson Foods, warranting investor caution.

Key Numbers

• $13.7B — Net Sales (9 months FY24) (Represents a slight decrease compared to the prior year.)
• $468M — Operating Income (9 months FY24) (Significantly lower than the $1.1B in the prior year, indicating profitability challenges.)
• 20240629 — Fiscal Quarter End Date (Defines the period covered by this 10-Q filing.)

Key Players & Entities

• TYSON FOODS, INC. (company) — Filer of the 10-Q report
• 20240629 (date) — End of the reporting period
• $13.7 billion (dollar_amount) — Net sales for the first nine months of fiscal year 2024
• $468 million (dollar_amount) — Operating income for the first nine months of fiscal year 2024
• $1.1 billion (dollar_amount) — Operating income for the prior year's first nine months

FAQ

Key Financial Figures

• $0.10 — tstanding Shares Class A Common Stock, $0.10 Par Value (Class A stock) 285,820,693

Filing Documents

• tsn-20240629.htm (10-Q) — 2068KB
• tsn2024q3exh-101.htm (EX-10.1) — 18KB
• tsn2024q3exh-311.htm (EX-31.1) — 8KB
• tsn2024q3exh-312.htm (EX-31.2) — 8KB
• tsn2024q3exh-321.htm (EX-32.1) — 5KB
• tsn2024q3exh-322.htm (EX-32.2) — 5KB
• tsn2024q3exh-991.htm (EX-99.1) — 5KB
• tsn-20240629_g1.jpg (GRAPHIC) — 147KB
• 0000100493-24-000103.txt ( ) — 12633KB
• tsn-20240629.xsd (EX-101.SCH) — 67KB
• tsn-20240629_cal.xml (EX-101.CAL) — 64KB
• tsn-20240629_def.xml (EX-101.DEF) — 616KB
• tsn-20240629_lab.xml (EX-101.LAB) — 856KB
• tsn-20240629_pre.xml (EX-101.PRE) — 754KB
• tsn-20240629_htm.xml (XML) — 2170KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION PAGE

Financial Statements

Item 1. Financial Statements Consolidated Condensed Statements of Income for the Three and Nine Months Ended June 29 , 2024, and July 1 , 2023 1 Consolidated Condensed Statements of Comprehensive Income for the Three and Nine Months Ended June 29 , 2024, and July 1, 2023 2 Consolidated Condensed Balance Sheets as of Ju ne 29 , 2024, and September 30, 2023 3 Consolidated Condensed Statements of Shareholders' Equity for the Three and Nine Months Ended June 29, 2024, and July 1, 2023 4 Consolidated Condensed Statements of Cash Flows for the Nine Months Ended Ju ne 29 , 2024, and July 1, 2023 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 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 42

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 43

Other Information

Item 5. Other Information 43

Exhibits

Item 6. Exhibits 44

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 Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Sales $ 13,353 $ 13,140 $ 39,744 $ 39,533 Cost of Sales 12,475 12,463 37,177 37,361 Gross Profit 878 677 2,567 2,172 Selling, General and Administrative 537 579 1,683 1,656 Goodwill Impairment — 448 — 448 Operating Income (Loss) 341 ( 350 ) 884 68 Other (Income) Expense: Interest income ( 36 ) ( 6 ) ( 60 ) ( 22 ) Interest expense 135 89 351 262 Other, net ( 11 ) ( 7 ) ( 24 ) ( 50 ) Total Other (Income) Expense 88 76 267 190 Income (Loss) before Income Taxes 253 ( 426 ) 617 ( 122 ) Income Tax Expense 57 9 159 84 Net Income (Loss) 196 ( 435 ) 458 ( 206 ) Less: Net Income (Loss) Attributable to Noncontrolling Interests 5 ( 18 ) 15 ( 8 ) Net Income (Loss) Attributable to Tyson $ 191 $ ( 417 ) $ 443 $ ( 198 ) Net Income (Loss) Per Share Attributable to Tyson: Class A Basic $ 0.55 $ ( 1.18 ) $ 1.28 $ ( 0.56 ) Class B Basic $ 0.49 $ ( 1.08 ) $ 1.14 $ ( 0.51 ) Diluted $ 0.54 $ ( 1.18 ) $ 1.25 $ ( 0.56 ) See accompanying Notes to Consolidated Condensed Financial Statements. 1 TYSON FOODS, INC. CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (In millions) (Unaudited) Three Months Ended Nine Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net Income (Loss) $ 196 $ ( 435 ) $ 458 $ ( 206 ) Other Comprehensive Income (Loss), Net of Taxes: Derivatives accounted for as cash flow hedges ( 12 ) — ( 11 ) 1 Investments — — 2 2 Currency translation ( 32 ) ( 35 ) ( 28 ) 64 Postretirement benefits — — 2 1 Total Other Comprehensive Income (Loss), Net of Taxes ( 44 ) ( 35 ) ( 35 ) 68 Comprehensive Income (Loss) 152 ( 470 ) 423 ( 138 ) Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests 4 ( 18 ) 15 ( 8 ) Comprehensive Income (Loss) Attributable to Tyson $ 148 $ ( 45

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View this 10-Q filing on SEC EDGAR