The company reported a sales result of US$13.74 billion for the fourth quarter of 2022, up 7.2% year-on-year, with a total of US$53.28 billion for the year as a whole, up by 13.2%.

Net income for the fourth quarter came in at US$537 million, a drop of 60.5% year-on-year. However, net income for the year as a whole was up by 6.2% to US$3.25 billion.

For the company’s beef segment, sales for the fourth quarter were US$4.86 billion with a volume increase of 5.1% and average price down by 8.2%. The full 2022 sales result was US$19.85 billion, with a volume increase of 0.1% and average price up by 10.2% year-on-year.

Tyson notes that sales volume was relatively flat in fiscal 2022, increasing in the fourth quarter driven by improved operational performance. Meanwhile, the average sales price increased in the year as a whole as input costs increased alongside strong demand but was down in the fourth quarter due to reduced demand for premium cuts of beef compared with exceptionally high demand in the corresponding quarter of 2022.

Looking forward to fiscal 2023, Tyson noted that the USDA reports that domestic protein production is expected to decrease around 1%. For beef alone, the USDA projects domestic production to drop by 6%. Tyson, therefore, expects an adjusted operating margin at or below the low end of its long-term range of 5-7% in fiscal 2023 as margins are expected to decrease from historically high levels.

The company also noted its new productivity program, launched in 2022, which targeted US$1 billion in productivity savings by the end of 2023. The company realised savings of more than US$700 million in fiscal 2022 and now expects to exceed its US$1 billion target before the end of fiscal 2023. Sales for the 2023 financial year are forecast in the range of US$55-57 billion.

“We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein,” said Donnie King, President and CEO of Tyson Foods.

“Our results were supported by historically strong operations in our beef segment and improved performance in our chicken segment. We also experienced share gains in both our foodservice Focus 6 categories and retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands.”