Tyson Foods increased quarterly revenue due to higher meat prices

Tyson Foods увеличила квартальную выручку за счет роста цен на мясо

Meat producer Tyson Foods has published financial report for the fourth quarter of fiscal 2021. Compared to the same quarter last year:

  • revenue increased by 12%, up to $12.8 billion;
  • operating profit increased by 98%, up to 1.9 billion;
  • net profit increased by 107%, up to 1.4 billion.

Like the others, Tyson Foods is in trouble, caused by COVID-19. But unlike many, the company operates in a decline-resistant segment., after all, the demand for its products always remains high. And in case of problems, Tyson Foods can always raise prices.. That's what she does..

Revenue. Sales volume of all types of meat - beef, pork and chicken - fell compared to last year. The first of the reasons is accounting. The fourth quarter of fiscal 2020 was a week longer.. The second is disruptions due to staff shortages and supply problems.. As a result, quarterly sales decreased by 11%.

But, as the company notes, demand for meat remained high throughout the period. To reduce the rising costs of wages and transportation, Tyson Foods raised prices. So, for the year beef has risen in price by 33%, pork — on 38%, chicken — on 19%. As a result, it was possible not only to compensate for the costs, but also to increase quarterly revenue by 12%.

Profit. In the fourth quarter, Tyson Foods sold the business of producing treats for animals. This added approximately $0.8 billion to operating profit.. Therefore, adjusted operating profit did not double, as according to accounting standards, and on 26%, up to $1.2 billion. Again, due to rising prices.

Forecast. In 2020, when the demand for public catering for meat fell, Tyson Foods' revenue grew by only 2%. In the same year, due to the effect of a low base, revenue increased by 9%, up to $ 47 billion. According to company forecasts, in the next, 2022 revenue will grow by 6%, up to $50 billion. On average, in the last five years, Tyson Foods' revenue has grown by 5% in year.

Квартальная выручка по ключевым сегментам, million dollars

Revenue Volume of sales average price
Beef 5012 (+17%) −15% +33%
Pork 1614 (+20%) −18% +38%
Chicken 3873 (+13%) −6% +19%
Foods 2253 (−1%) −12% +11%
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