Tyson’s GAAP operating income for the first quarter amounted to US$705 million, down 7% year-on-year, with an adjusted operating income of US$1,025 million, up 24%. Total Company GAAP operating margin was 6.7%, with an adjusted operating margin of 9.5%. As of January 2, Tyson’s liquidity was US$4.2 billion. The meatpacker said the results were impacted by approximately US$120 million of direct incremental expenses related to Covid-19. Tyson also repaid US$750 million of its US$1.5 billion outstanding term loan in February. 

In the beef segment, sales volume is said to have increased primarily due to strong domestic and export demand, as well as the prior year impact of a fire which caused the temporary closure of a production facility for the majority of the first quarter of fiscal 2020. Tyson reported a decrease in sales price primarily due to increased availability of market-ready live cattle. Operating income increased in the first quarter, attributed to strong demand as the company continued to optimise revenues relative to live cattle supply, partially offset by production inefficiencies and direct incremental expenses related to Covid-19.  

Additionally, operating income in the first quarter of fiscal 2021 was impacted by a cattle supplier’s misappropriation of Company funds, which resulted in a US$55 million gain related to the recovery of cattle inventory as compared to a US$68 million loss recognized in the first quarter of fiscal 2020. Read more here