Sales for the second quarter were flat at US$13.13 billion, with a GAAP operating loss of US$49 million, a drop of 104% year-on-year, and adjusted operating income of US$65 million, down 94%.

For the first six months of the year as a whole, Tyson Foods reported US$26.39 billion in sales, an increase of 1.3% year-on-year. Meanwhile, GAAP operating income was down 84% at US$418 million while adjusted operating income was down 80% to US$518 million.

Sales in the company’s beef segment were down by 2.9% in the second quarter to US$4.62 billion, with an average price fall of 5.4%. For the first half of the year, sales were down 6.9% to US$9.34 billion, with average price falling by 6.9%.

Looking forward to the full year, Tyson noted that the United States Department of Agriculture (USDA) has indicated that domestic protein production (beef, pork, chicken and turkey) should increase slightly compared to fiscal 2022 levels.

Meanwhile, the USDA projects that domestic beef production in particularly will fall by around 4% year-on-year in fiscal 2023. Tyson therefore anticipates an adjusted operating margin of –1% to 1% as margins are expected to decrease.

For the full financial year, the meatpacker has also forecast sales in the region of US$53-54 million.

President and CEO Donnie King said: “While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook. We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them.

“Through our growth strategy, focus on margin improvement, and proven leadership team, I am confident in our ability to capture the opportunities in front of us and create long-term value for customers, team members and shareholders.”