01 December, 2020 - 02 December, 2020
09 December, 2020 - 10 December, 2020
15 December, 2020 -
United States (Eastern time)
11 January, 2021 - 13 January, 2021
Sao Paulo, Brazil
16 January, 2021 - 19 January, 2021
Riva Del Garda (TN), Italy
Tyson Foods has reported strong fourth quarter and fiscal 2020 results, with sales volume in the beef segment up 11.8% in the last quarter.
For the fourth quarter of its fiscal year 2020, Tyson Foods posted a GAAP EPS of US$1.90, up 88% from the same quarter in 2019. GAAP operating income totalled US$1,012 million in the period, up 68% year-on-year, and total company GAAP operating margin was 8.8%. Tyson said it reduced total debt by US$690 million and that the results were negatively impacted by approximately US$200 million of direct incremental expenses related to Covid-19.
For fiscal 2020, GAAP EPS was US$5.86, up 6% from the previous fiscal year, and GAAP operating income amounted to US$3,114 million, up 10%. Total Company GAAP operating margin was 7.2% and the results were negatively impacted by approximately US$540 million of direct incremental expenses related to Covid-19, according to Tyson Foods.
In the beef segment, sales volume increased 11.8% in the fourth quarter, or +3.8% after removing the impact of an additional week, primarily due to a fire that caused the temporary closure of a production facility during the fourth quarter of fiscal 2019. For fiscal year 2020, sales volume decreased 4.5%, or -6.5% after removing the impact of an additional week, due to lower production throughput associated with the impact of Covid-19 during portions of fiscal 2020 and a reduction in live cattle harvest capacity as a result of a fire that caused the temporary closure of a production facility for the majority of the first quarter of fiscal 2020.
Average beef sales price decreased in the fourth quarter, attributed to increased availability of live cattle supply and lower livestock cost. For the fiscal year, average sales price is reported to have increased as beef demand remained strong amid supply disruptions related to the impact of Covid-19. Tyson Foods said the operating income increased primarily due to market conditions, including Covid-19 disruptions, which increased the spread between preexisting contractual agreements and the cost of fed cattle, and the impact of an additional week in fiscal 2020, partially offset by price reductions offered to customers, as well as production inefficiencies and direct incremental expenses related to Covid-19.
For fiscal 2021, Tyson said the U.S. Department of Agriculture (USDA) projects that domestic production will increase approximately 2% in fiscal 2021, compared with a Covid-19 impacted fiscal 2020. The meat processor also expects sufficient supplies in regions where it operates its plants