Bay Street News

Tyson Foods Reports Third Quarter 2024 Results

SPRINGDALE, Ark., Aug. 05, 2024 (GLOBE NEWSWIRE) — Tyson Foods, Inc. (NYSE: TSN), one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, reported the following results:

(in millions, except per share data) Third Quarter   Nine Months Ended
    2024     2023       2024     2023  
Sales $ 13,353   $ 13,140     $ 39,744   $ 39,533  
               
Operating Income (Loss) $ 341   $ (350 )   $ 884   $ 68  
Adjusted1Operating Income (non-GAAP) $ 491   $ 179     $ 1,308   $ 697  
               
Net Income (Loss) Per Share Attributable to Tyson $ 0.54   $ (1.18 )   $ 1.25   $ (0.56 )
Adjusted1Net Income (Loss) Per Share Attributable to Tyson (non-GAAP) $ 0.87   $ 0.15     $ 2.18   $ 0.97  

1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this table and throughout this earnings release, adjusted operating income (loss) and adjusted net income (loss) per share attributable to Tyson (Adjusted EPS) are non-GAAP financial measures. Refer to the end of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP measures.

First Nine Months Highlights

Third Quarter Highlights

“Our disciplined actions and focus on the fundamentals have resulted in a positive turnaround of our business,” stated Donnie King, President & CEO of Tyson Foods. “In Q3, we delivered the highest adjusted operating income in the last seven quarters while also generating strong free cash flow. Looking ahead, we will continue to strive to be best-in-class operators, drive efficiencies, value-up our portfolio, win with customers and consumers, and be disciplined in our capital deployment.”

SEGMENT RESULTS (in millions)
Sales
(for the third quarter and nine months ended June 29, 2024, and July 1, 2023)
  Third Quarter Nine Months Ended
      Volume Avg. Price     Volume Avg. Price
    2024     2023   Change Change2   2024     2023   Change Change2
Beef $ 5,241   $ 4,956   4.4 % 1.4 % $ 15,218   $ 14,296   0.9 % 5.5 %
Pork   1,462     1,324   1.2 % 12.6 %   4,465     4,274   4.0 % 1.5 %
Chicken   4,076     4,212   (0.4) % (3.7) %   12,174     12,905   (2.7) % (3.2) %
Prepared Foods   2,432     2,383   2.0 % 0.1 %   7,379     7,343   1.7 % (1.2) %
International/Other   582     633   6.5 % (14.6) %   1,744     1,879   3.9 % (11.1) %
Intersegment Sales   (440 )   (368 ) n/a   n/a     (1,236 )   (1,164 ) n/a   n/a  
Total $ 13,353   $ 13,140   1.1 % 0.6 % $ 39,744   $ 39,533   (0.1) % 0.7 %
Operating Income (Loss)
(for the third quarter and nine months ended June 29, 2024, and July 1, 2023)
  Third Quarter Nine Months Ended
      Operating Margin     Operating Margin
    2024     2023   2024   2023     2024     2023   2024   2023  
Beef $ (69 ) $ 66   (1.3) % 1.3 % $ (310 ) $ 232   (2.0) % 1.6 %
Pork   (62 )   (74 ) (4.2) % (5.6) %   (24 )   (128 ) (0.5) % (3.0) %
Chicken   244     (314 ) 6.0 % (7.5) %   579     (503 ) 4.8 % (3.9) %
Prepared Foods   203     206   8.3 % 8.6 %   676     705   9.2 % 9.6 %
International/Other   25     (234 ) n/a   n/a     (37 )   (238 ) n/a   n/a  
Total $ 341   $ (350 ) 2.6 % (2.7) % $ 884   $ 68   2.2 % 0.2 %
ADJUSTED SEGMENT RESULTS (in millions)
Adjusted Operating Income (Loss) (Non-GAAP)1
(for the third quarter and nine months ended June 29, 2024, and July 1, 2023)
  Third Quarter Nine Months Ended
      Adjusted Operating
Margin (Non-GAAP)
    Adjusted Operating
Margin (Non-GAAP)
    2024     2023   20242   20232     2024     2023   20242   20232  
Beef $ (69 ) $ 79   (1.3) % 1.6 % $ (220 ) $ 216   (1.4) % 1.5 %
Pork   22     (70 ) 1.5 % (5.3) %   123     (120 ) 2.7 % (2.8) %
Chicken   307     (63 ) 7.5 % (1.5) %   659     (152 ) 5.4 % (1.2) %
Prepared Foods   203     220   8.3 % 9.2 %   700     738   9.5 % 10.1 %
International/Other   28     13   n/a   n/a     46     15   n/a   n/a  
Total $ 491   $ 179   3.7 % 1.4 % $ 1,308   $ 697   3.3 % 1.8 %

2 Average Price Change and Adjusted Operating Margin (Non-GAAP) exclude $38 million in the Chicken segment and Total Company for the three and nine months ended July 1, 2023 and $45 million in the Pork segment and Total Company for the three and nine months ended June 29, 2024 of legal contingency accruals recognized as reductions to Sales.

OUTLOOK
For fiscal 2024, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly compared to fiscal 2023 levels. The following is a summary of the updated outlook for each of our segments, as well as an outlook for revenue, capital expenditures, net interest expense, liquidity and tax rate for fiscal 2024. Certain of the outlook numbers include adjusted operating income (loss) (a non-GAAP metric) for each segment. The Company is not able to reconcile its full-year fiscal 2024 projected adjusted results to its fiscal 2024 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort. Adjusted operating income (loss) should not be considered a substitute for operating income (loss) or any other measures of financial performance reported in accordance with GAAP. Investors should rely primarily on the Company’s GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.

Beef
USDA projects domestic production will decrease approximately 2% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating loss between ($400) million and ($300) million in fiscal 2024.

Pork
USDA projects domestic production will increase approximately 3% in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of $100 million to $200 million in fiscal 2024.

Chicken
USDA projects chicken production will be flat in fiscal 2024 as compared to fiscal 2023. We anticipate adjusted operating income of $850 million to $950 million for fiscal 2024.

Prepared Foods
We anticipate adjusted operating income of $850 million to $950 million in fiscal 2024.

International/Other
We anticipate improved results from our foreign operations in fiscal 2024 on an adjusted basis.

Total Company
We anticipate total company adjusted operating income of $1.6 billion to $1.8 billion for fiscal 2024.

Revenue
We expect sales to be relatively flat in fiscal 2024 as compared to fiscal 2023.

Capital Expenditures
We expect capital expenditures between $1.2 billion and $1.3 billion for fiscal 2024. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. This includes completion of capacity expansion projects as well as new equipment, automation technology and processes for product innovation.

Net Interest Expense
We expect net interest expense to approximate $395 million for fiscal 2024.

Liquidity
We expect total liquidity, which was $4.8 billion as of June 29, 2024, to remain above our minimum liquidity target of $1.0 billion. We anticipate using existing liquidity to retire the $1.25 billion senior notes due August 2024.

Tax Rate
We currently expect our adjusted effective tax rate to be 23-24% for fiscal 2024.

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 )
Dividends Declared Per Share:              
Class A $ 0.490     $ 0.480     $ 1.480     $ 1.460  
Class B $ 0.441     $ 0.432     $ 1.332     $ 1.314  
               
Sales Growth   1.6 %         0.5 %    
Margins: (Percent of Sales)              
Gross Profit   6.6 %     5.2 %     6.5 %     5.5 %
Operating Income (Loss)   2.6 %   (2.7) %     2.2 %     0.2 %
Net Income (Loss) Attributable to Tyson   1.4 %   (3.2) %     1.1 %   (0.5) %
Effective Tax Rate3   22.9 %   (1.8) %     25.9 %   (67.9) %

3 The effective tax rate for the three and nine months ended July 1, 2023 was impacted by a $448 million goodwill impairment recognized during the period as the charge was non-deductible for income tax purposes.

TYSON FOODS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
(Unaudited)
  June 29, 2024   September 30, 2023
Assets      
Current Assets:      
Cash and cash equivalents $ 2,569   $ 573
Accounts receivable, net   2,389     2,476
Inventories   5,033     5,328
Other current assets   581     345
Total Current Assets   10,572     8,722
Net Property, Plant and Equipment   9,368     9,634
Goodwill   9,801     9,878
Intangible Assets, net   5,928     6,098
Other Assets   2,063     1,919
Total Assets $ 37,732   $ 36,251
       
Liabilities and Shareholders’ Equity      
Current Liabilities:      
Current debt $ 1,320   $ 1,895
Accounts payable   2,291     2,594
Other current liabilities   2,199     2,010
Total Current Liabilities   5,810     6,499
Long-Term Debt   9,701     7,611
Deferred Income Taxes   2,318     2,308
Other Liabilities   1,701     1,578
       
Total Tyson Shareholders’ Equity   18,076     18,133
Noncontrolling Interests   126     122
Total Shareholders’ Equity   18,202     18,255
       
Total Liabilities and Shareholders’ Equity $ 37,732   $ 36,251
TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
  Nine Months Ended
  June 29, 2024   July 1, 2023
Cash Flows From Operating Activities:      
Net income (loss) $ 458     $ (206 )
Depreciation and amortization   1,082       943  
Deferred income taxes   6       (54 )
Impairment of goodwill         448  
Other, net   162       200  
Net changes in operating assets and liabilities   265       98  
Cash Provided by Operating Activities   1,973       1,429  
       
Cash Flows From Investing Activities:      
Additions to property, plant and equipment   (884 )     (1,564 )
Purchases of marketable securities   (23 )     (21 )
Proceeds from sale of marketable securities   21       20  
Acquisition, net of cash acquired         (262 )
Acquisition of equity investments   (28 )     (50 )
Other, net   60       5  
Cash Used for Investing Activities   (854 )     (1,872 )
       
Cash Flows From Financing Activities:      
Proceeds from issuance of debt   2,391       1,117  
Payments on debt   (347 )     (175 )
Proceeds from issuance of commercial paper   1,649       7,015  
Repayments of commercial paper   (2,240 )     (7,015 )
Purchases of Tyson Class A common stock   (44 )     (343 )
Dividends   (513 )     (503 )
Stock options exercised   9       10  
Other, net   (22 )     (5 )
Cash Provided by Financing Activities   883       101  
Effect of Exchange Rate Changes on Cash   (6 )     10  
Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash   1,996       (332 )
Cash and Cash Equivalents and Restricted Cash at Beginning of Year   573       1,031  
Cash and Cash Equivalents and Restricted Cash at End of Period   2,569       699  
Less: Restricted Cash at End of Period          
Cash and Cash Equivalents at End of Period $ 2,569     $ 699  
       

Non-GAAP Financial Measures

Adjusted Operating Income (Loss), Adjusted Income (Loss) before Income Taxes, Adjusted Income Tax Expense (Benefit), Adjusted Net Income (Loss) Attributable to Tyson and Adjusted EPS, EBITDA, Adjusted EBITDA, net debt to EBITDA, net debt to Adjusted EBITDA and Free Cash Flow are presented as supplemental financial measures in the evaluation of our business that are not required by, or presented in accordance with GAAP. The non-GAAP financial measures are tools intended to assist our management and investors in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations on an ongoing basis. These non-GAAP measures should not be a substitute for their comparable GAAP financial measures. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. We believe the presentation of these non-GAAP financial measures helps management and investors to assess our operating performance from period to period, including our ability to generate earnings sufficient to service our debt, enhances understanding of our financial performance and highlights operational trends. These measures are widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness of comparative measures.

Definitions

EBITDA is defined as net income (loss) before interest, income taxes (benefits), depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA) represents the ratio of our debt, net of cash, cash equivalents and short-term investments, to EBITDA (and to Adjusted EBITDA). EBITDA, Adjusted EBITDA, net debt to EBITDA and net debt to Adjusted EBITDA are presented as supplemental financial measurements in the evaluation of our business.

Adjusted EBITDA, Adjusted Operating Income (Loss), Adjusted Income (Loss) before Income Taxes, Adjusted Income Tax Expense (Benefit), Adjusted Net Income (Loss) Attributable to Tyson and Adjusted EPS are defined as EBITDA, Operating Income (Loss), Income (Loss) before Income Taxes, Income Tax Expense (Benefit), Net Income (Loss) Attributable to Tyson and diluted earnings per share, respectively, excluding the impacts of any items that management believes do not directly reflect our core operations on an ongoing basis.

Free Cash Flow is defined as Cash Provided by Operating Activities minus payments for Property, Plant and Equipment.

TYSON FOODS, INC.
GAAP Results to Non-GAAP Results Reconciliations
(In millions, except per share data)
(Unaudited)
Results for the third quarter ended June 29, 2024
  Sales Cost
of
Sales
Selling,
General and Administrative
Goodwill Impairment Operating
Income (Loss)
Other
(Income) Expense
Income (Loss) before Income Taxes Income Tax Expense
(Benefit)
Net Income (Loss) Attributable to
Tyson
EPS Impact
GAAP Results         $ 341     $ 253   $ 57   $ 191   $ 0.54  
Production facility fire costs, net of insurance proceeds6 5     5       5     1     4     0.01  
Plant closures 41     41       41     8     33     0.09  
Legal contingency accrual 45 56     101       101     23     78     0.22  
The Netherlands facility7 3     3       3         3     0.01  
Adjusted Non-GAAP Results         $ 491     $ 403   $ 89   $ 309   $ 0.87  
                     
Results for the third quarter ended July 1, 2023
  Sales Cost
of Sales
Selling,
General and Administrative
Goodwill Impairment Operating
Income (Loss)
Other
(Income) Expense
Income (Loss)
before Income
Taxes
Income Tax Expense
(Benefit)
Net Income (Loss) Attributable to
Tyson
EPS Impact
GAAP Results         $ (350 )   $ (426 ) $ 9   $ (417 ) $ (1.18 )
Production facilities fire insurance proceeds, net of costs6 (22 )   (22 ) (22 )   (44 )   (11 )   (33 )   (0.10 )
Legal contingency accruals 38     38       38     9     29     0.08  
Restructuring and related charges 19   31   50       50     12     38     0.11  
Goodwill Impairment4   448   448       448         424     1.20  
Plant closures 15     15       15     3     12     0.04  
Adjusted Non-GAAP Results         $ 179     $ 81   $ 22   $ 53   $ 0.15  
Results for the nine months ended June 29, 2024
  Sales Cost
of
Sales
Selling,
General and Administrative
Goodwill Impairment Operating
Income (Loss)
Other
(Income) Expense
Income (Loss) before Income
Taxes
Income Tax Expense
(Benefit)
Net Income (Loss) Attributable to
Tyson
EPS Impact
GAAP Results         $ 884     $ 617   $ 159   $ 443   $ 1.25  
Production facility fire insurance proceeds, net of costs6 (19 )   (19 ) (3 )   (22 )   (5 )   (17 )   (0.05 )
Restructuring and related charges   31   31       31     8     23     0.06  
Plant closures 155     155       155     46     109     0.31  
Legal contingency accruals 45 129     174       174     41     133     0.38  
The Netherlands facility7 83     83       83         83     0.23  
Adjusted Non-GAAP Results         $ 1,308     $ 1,038   $ 249   $ 774   $ 2.18  
                     
Results for the nine months ended July 1, 2023
  Sales Cost of Sales Selling,
General and Administrative
Goodwill Impairment Operating
Income (Loss)
Other
(Income) Expense
Income (Loss)
before Income Taxes
Income Tax Expense
(Benefit)
Net Income (Loss) Attributable to
Tyson
EPS Impact
GAAP Results         $ 68     $ (122 ) $ 84   $ (198 ) $ (0.56 )
Production facilities fire insurance proceeds, net of costs6 (57 )   (57 ) (22 )   (79 )   (19 )   (60 )   (0.17 )
Legal contingency accruals 38     38       38     9     29     0.08  
Restructuring and related charges 23   70     93       93     22     71     0.20  
Goodwill Impairment4   448   448       448         424     1.20  
Plant closures 107     107       107     27     80     0.22  
Adjusted Non-GAAP Results         $ 697     $ 485   $ 123   $ 346   $ 0.97  

4 Goodwill impairment is non-deductible for income tax purposes and the EPS impact is net of $24 million associated with Net Income (Loss) Attributable to Noncontrolling Interests.

        

TYSON FOODS, INC.
Adjusted Operating Income (Loss) Non-GAAP Reconciliations
(In millions)
(Unaudited)
Adjusted Operating Income (Loss)
(for the third quarter ended June 29, 2024)
  Beef Pork Chicken Prepared
Foods
International
/Other
Total
Reported operating income (loss) $ (69 ) $ (62 ) $ 244 $ 203 $ 25 $ 341
Add: Production facility fire costs, net of insurance proceeds6           5       5
Add: Plant closures       39     2       41
Add: Legal contingency accruals       45     56       101
Add: the Netherlands facility7               3   3
Adjusted operating income (loss) $ (69 ) $ 22   $ 307 $ 203 $ 28 $ 491
Adjusted Operating Income (Loss)
(for the third quarter ended July 1, 2023)
  Beef Pork Chicken Prepared
Foods
International
/Other
Total
Reported operating income (loss) $ 66 $ (74 ) $ (314 ) $ 206 $ (234 ) $ (350 )
Less: Production facility fire insurance proceeds, net of costs6         (22 )         (22 )
Add: Restructuring and related charges   13   4     10     14   9     50  
Add: Plant closures         15           15  
Add: Legal contingency accrual         38           38  
Add: Goodwill Impairment         210       238     448  
Adjusted operating income (loss) $ 79 $ (70 ) $ (63 ) $ 220 $ 13   $ 179  
Adjusted Operating Income (Loss)
(for the nine months ended June 29, 2024)
  Beef Pork Chicken Prepared
Foods
International
/Other
Total
Reported operating income (loss) $ (310 ) $ (24 ) $ 579   $ 676 $ (37 ) $ 884  
Less: Production facility fire insurance proceeds, net of costs6           (19 )         (19 )
Add: Restructuring and related charges   4     1     2     24       31  
Add: Plant closures   41     73     41           155  
Add: Legal contingency accruals   45     73     56           174  
Add: the Netherlands facility7                 83     83  
Adjusted operating income (loss) $ (220 ) $ 123   $ 659   $ 700 $ 46   $ 1,308  
Adjusted Operating Income (Loss)
(for the nine months ended July 1, 2023)
  Beef Pork Chicken Prepared
Foods
International
/Other
Total
Reported operating income (loss) $ 232   $ (128 ) $ (503 ) $ 705 $ (238 ) $ 68  
Less: Production facility fire insurance proceeds, net of costs6   (42 )       (15 )         (57 )
Add: Restructuring and related charges   26     8     11     33   15     93  
Add: Plant closures           107           107  
Add: Legal contingency accrual           38           38  
Add: Goodwill Impairment           210       238     448  
Adjusted operating income (loss) $ 216   $ (120 ) $ (152 ) $ 738 $ 15   $ 697  
TYSON FOODS, INC.
EBITDA and Adjusted EBITDA Non-GAAP Reconciliations
(In millions)
(Unaudited)
  Nine Months Ended   Fiscal Year Ended   Twelve Months Ended
  June 29, 2024   July 1, 2023   September 30, 2023   June 29, 2024
               
Net income (loss) $ 458     $ (206 )   $ (649 )   $ 15  
Less: Interest income   (60 )     (22 )     (30 )     (68 )
Add: Interest expense   351       262       355       444  
Add/(Less): Income tax expense (benefit)   159       84       (29 )     46  
Add: Depreciation   902       762       1,100       1,240  
Add: Amortization5   171       174       229       226  
EBITDA $ 1,981     $ 1,054     $ 976     $ 1,903  
               
Adjustments to EBITDA:              
Less: Production facilities fire insurance proceeds, net of costs6 $ (22 )   $ (79 )   $ (75 )   $ (18 )
Add: Restructuring and related charges   31       93       124       62  
Add: Plant closures   155       107       322       370  
Add: Legal contingency accruals   174       38       156       292  
Add: The Netherlands facility7   83                   83  
Add: Goodwill impairment         448       781       333  
Less: China plant relocation remuneration               (19 )     (19 )
Add: Product line discontinuation               17       17  
Less: Depreciation included in EBITDA adjustments8   (127 )     (38 )     (133 )     (222 )
Total Adjusted EBITDA $ 2,275     $ 1,623     $ 2,149     $ 2,801  
               
Total gross debt         $ 9,506     $ 11,021  
Less: Cash and cash equivalents           (573 )     (2,569 )
Less: Short-term investments           (15 )     (13 )
Total net debt         $ 8,918     $ 8,439  
               
Ratio Calculations:              
Gross debt/EBITDA         9.7x     5.8x  
Net debt/EBITDA         9.1x     4.4x  
               
Gross debt/Adjusted EBITDA         4.4x     3.9x  
Net debt/Adjusted EBITDA         4.1x     3.0x  

5 Excludes the amortization of debt issuance and debt discount expense of $9 million for the nine months ended June 29, 2024, $7 million for the nine months ended July 1, 2023, $10 million for the fiscal year ended September 30, 2023 and $12 million for the twelve months ended June 29, 2024 as it is included in interest expense.

6 Relates to fires at production facilities in Chicken in the fourth quarter of fiscal 2021 and Beef in the fourth quarter of fiscal 2019.

7 Relates to a fire at our production facility in the Netherlands in the first quarter of fiscal 2024 and subsequent decision to sell the facility.

8 Removal of accelerated depreciation of $127 million related to plant closures for the nine months ended June 29, 2024; $14 million related to restructuring and related charges and $24 million related to plant closures for the nine months ended July 1, 2023; $19 million related to restructuring and related charges and $114 million related to plant closures for the twelve months ended September 30, 2023; and $5 million related to restructuring and related charges and $217 million related to plant closures for the twelve months ended June 29, 2024 as they are already included in depreciation expense.

TYSON FOODS, INC.
Free Cash Flow Non-GAAP Reconciliation
(In millions)
(Unaudited)
  Nine Months Ended
  June 29, 2024   July 1, 2023
Cash Provided by Operating Activities $ 1,973     $ 1,429  
Additions to property, plant and equipment   (884 )     (1,564 )
Free cash flow $ 1,089     $ (135 )

        

About Tyson Foods, Inc.
Tyson Foods, Inc. (NYSE: TSN) is a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The Company is unified by this purpose: Tyson Foods. We Feed the World Like Family™ and has a broad portfolio of iconic products and brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells® and ibp®. Tyson Foods is dedicated to bringing high-quality food to every table in the world, safely, sustainably, and affordably, now and for future generations. Headquartered in Springdale, Arkansas, the company had approximately 139,000 team members on September 30, 2023. Visit www.tysonfoods.com.

Conference Call Information and Other Selected Data
A conference call to discuss the Company’s financial results will be held at 9 a.m. Eastern Monday, August 5, 2024. A link for the webcast of the conference call is available on the Tyson Investor Relations website at https://ir.tyson.com. The webcast also can be accessed by the following direct link: https://events.q4inc.com/attendee/293448139. For those who cannot participate at the scheduled time, a replay of the live webcast and the accompanying slides will be available at https://ir.tyson.com. A telephone replay will also be available until September 5, 2024, toll free at 1-877-344-7529, international toll 1-412-317-0088 or Canada toll free 855-669-9658. The replay access code is 5696640. Financial information, such as this news release, as well as other supplemental data, can be accessed from the Company’s web site at https://ir.tyson.com.

Forward-Looking Statements
Certain information in this release constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2024, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt levels, return on invested capital, value-added product growth, capital expenditures, tax rates, access to foreign markets and dividend policy). These forward-looking statements are subject to a number of factors and uncertainties that could cause our actual results and experiences to differ materially from anticipated results and expectations expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) global pandemics have had, and may in the future have, an adverse impact on our business and operations; (ii) the effectiveness of restructuring or financial excellence programs; (iii) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (iv) cyberattacks, other cyber incidents, security breaches or other disruptions of our information technology systems; (v) risks associated with our failure to consummate favorable acquisition transactions or integrate certain acquisitions’ operations; (vi) the Tyson Limited Partnership’s ability to exercise significant control over the Company; (vii) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (viii) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (ix) outbreak of a livestock disease (such as African swine fever (ASF), avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an adverse effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to conduct our operations; (x) changes in consumer preference and diets and our ability to identify and react to consumer trends; (xi) effectiveness of advertising and marketing programs; (xii) significant marketing plan changes by large customers or loss of one or more large customers; (xiii) our ability to leverage brand value propositions; (xiv) changes in availability and relative costs of labor and contract farmers and our ability to maintain good relationships with team members, labor unions, contract farmers and independent producers providing us livestock, including as a result of our relocation of certain corporate team members to our world headquarters in Springdale, Arkansas; (xv) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (xvi) the effect of climate change and any legal or regulatory response thereto; (xvii) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws; (xviii) adverse results from litigation; (xix) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xx) impairment in the carrying value of our goodwill or indefinite life intangible assets; (xxi) our participation in a multiemployer pension plan; (xxii) volatility in capital markets or interest rates; (xxiii) risks associated with our commodity purchasing activities; (xxiv) the effect of, or changes in, general economic conditions; (xxv) impacts on our operations caused by factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemics, armed conflicts or extreme weather; (xxvi) failure to maximize or assert our intellectual property rights; (xxvii) effects related to changes in tax rates, valuation of deferred tax assets and liabilities, or tax laws and their interpretation; and (xxviii) the other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including those included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q.

Media Contact: Laura Burns, 479-713-9890
Investor Contact: Sean Cornett, 479-466-0401
Source: Tyson Foods, Inc.
Category: IR, Newsroom


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