Tyson Foods shares rose by 9% after quarterly report

One of the world's largest suppliers of meat Tyson Foods (NYSE: TSN) published financial report for the third quarter 2021 of the year:

• revenue increased by 24,5%, to 12,5 billion dollars;
• operating profit increased by 37,4%, to 1,1 billion;
• adjusted operating income increased by 81%, to 1,4 billion;
• net profit increased by 42,4%, to 749 million.

"During 12 quarters in a row we have increased our share in our core business. Sales volume increased, as the restaurant industry began to recover. We have increased meat production, to meet the strong demand in the US and abroad for better products. We reduce our financial debt and invest in future growth, developing plans to expand our business ", Tyson Foods CEO Donnie King.

Revenue. Compared to last year, the company increased sales in all segments. The largest increase in sales of beef and pork - by 24 And 14,5%. Sales of chicken and ready-to-eat foods have increased 3,3 And 4,5%. The company increased revenue due to recovery in the food service industry, as well as higher selling prices. Coronavirus restrictions and labor shortages negatively impacted revenue.

COVID-19. Tyson Foods does not give specific forecasts, but allow, that the pandemic will continue to negatively impact sales and operating costs in the short term. According to the company's estimates, in 2021 year, additional costs due to COVID-19 will amount to 325 million dollars.

Forecast. USDA forecast, in 2021 year meat production, i.e. beef, pork and poultry, in the country will grow by less than 1%. The company itself expects annual revenue growth of 7.5-8%, up to 46-47 billion dollars.

Promotions. On Monday, after the report, Tyson Foods shares added 8,7%. In total, since the beginning of the year, the company's securities have grown by 21,7%, to 77,3 $. Tyson Foods Raises Dividends for Nine Years. Годовая доходность — 2,3%.

Tyson Foods revenue, million dollars