However, GAAP operating income was US$467 million down 68% compared with the prior year and operating margins were 3.5%. The company also repurchased 4.9 million shares for US$313 million.

“We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health,” said Tyson Foods President and CEO Donnie King. “The strength of our retail brands, including Tyson, Jimmy Dean, Hillshire Farm, and Ball Park, was demonstrated by the growth in Prepared Foods, most notably with Jimmy Dean ending the quarter at its all-time highest volume share. Our advantaged brands in advantaged categories uniquely position us to win in the marketplace.”

For fiscal 2023, the United States Department of Agriculture (USDA) indicates domestic protein production (beef, pork, chicken and turkey) should be relatively flat compared to fiscal 2022 levels. The USDA projects domestic beef production will decrease approximately 5% in fiscal 2023 as compared to fiscal 2022. Tyson anticipate an adjusted operating margin of 2% to 4% in fiscal 2023 as margins are expected to decrease from historically high levels.