Tyson Foods Inc. of Springdale (NYSE:TSN) on Monday reported fiscal first-quarter net income of $1.12 billion, up from the $472 million it reported in the same quarter a year ago.
The company said it had profit of $3.07 per share. Earnings, adjusted for non-recurring gains, came to $2.87 per share.
The results beat Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.90 per share.
The meat producer, with brands including Jimmy Dean, Hillshire Farm and Ball Park, posted revenue of $12.93 billion in the period.
Sales volume for chicken increased 3.6% in the quarter, which Tyson attributed to more live production and higher demand. The average sales price increased 19.9%. Tyson linked the price increase to inflationary costs. It said higher income in the segment was partially offset by higher prices for feed ingredients, higher costs associated with the supply chain and labor challenges.
Sales volume increased just 0.2% for pork. Income for the segment was higher due to strong demand and reduced expenses. The average sales price was up 12.8% compared to the same period a year ago.
The company reported a 6.2% decrease in sales volume for beef, pointing to labor challenges and increased supply chain constraints. But income for the segment increased, which Tyson attributed to strong demand and reduced expenses. Gains were offset by higher costs for live cattle, labor and transportation. The average sales price surged 31.7%.
Prepared foods was the company's only segment to see a decrease in income. Tyson cited inflationary costs, including higher prices for raw materials. Sales for the segment declined 2.6% due to the divestiture of Tyson's pet treats business in the fourth quarter of fiscal 2021. The average sales price increase 13%.
“We’re pleased with the results of the first quarter and of the steps that we are taking to improve productivity,” Donnie King, president and CEO of Tyson Foods, said in an earnings report. “Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers and winning with excellence. We have the right team who are taking the right actions and as a result, we believe our future is bright.”
Tyson expects full-year revenue in the range of $49 billion to $51 billion.
In fiscal 2022, Tyson launched a productivity program designed to make the company "better, faster and more agile," the company said in a news release. It's targeting $1 billion in productivity savings by the end of fiscal 2024 and $300 million to $400 million in fiscal 2022. Tyson is also investing $1.3 billion in automation over next three years to increase volume and drive safety and reliability.
The company said it has provided more than $500 million in wage increases over the past year, raising the average hourly pay for U.S. workers to $24 with benefits.
The Associated Press contributed to this report.