Operating income for the protein to hides processor was US$231 million, which was down 51% from the same period a year earlier. Adjusted operating income was US$411 million, down 9%. Total company adjusted operating margin was 3.1% (non-GAAP).

“Our team executed well in the quarter and delivered tangible results, including our third sequential quarter of adjusted operating income growth,” said Donnie King, President & CEO, Tyson Foods. “We saw the benefits of our diverse protein portfolio and realisation of operational efficiencies from the strategic decisions we made in the past year.”

Over the first quarter of fiscal 2024, beef sales were worth US$5.02 billion of the total revenue. However, operating margins for beef were negative (-4.1%), leaving an operating margin deficit of US$206 million. It was a positive US$135 million a year prior.

In the company outlook, Tyson said: “For fiscal 2024, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should increase slightly compared with fiscal 2023 levels. USDA projects domestic production will decrease approximately 2% in fiscal 2024 as compared with fiscal 2023. We anticipate adjusted operating income (loss) between (US$400) million and breakeven in fiscal 2024.”