A diverse portfolio and strong consumer demand for protein helped Tyson Foods delivers record sales and earnings for the full year, according to Donnie King, company president and chief executive officer. Despite lower Q4 earnings, the company reported an adjusted operating income of $4.4 billion, up 3% over the prior year.
"Our results were supported by historically strong operations in our beef segment and improved performance in our chicken segment. We also experienced share gains in both our foodservice Focus 6 categories and retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands,” he said.
The company’s productivity program, which was announced one year ago and designed to deliver more than $1 billion in recurring annual savings by the end of 2024, has accelerated ahead of schedule and is now expected to be achieved by the end of FY23, King added.
Beginning in fiscal 2022, Tyson launched a new productivity program, which is designed to drive a better, faster and more agile organization that is supported by a culture of continuous improvement and faster decision making. The focus of the plan, King said, includes operational and functional excellence, digital solutions, and automation and advanced technologies.
The company is targeting $1 billion in productivity savings by the end of fiscal 2024, including more than $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline. King reported that the plan has accelerated ahead of schedule and is now expected to be achieved by the end of FY23. More than $700 million of productivity savings was realized in fiscal 2022, which partially offset the impacts of inflationary market conditions.
Looking ahead, King said he is excited about the momentum in Tyson’s branded retail business. Nielsen data revealed Tyson’s core business lines outpaced total food and beverage and our peers in growth up 18% in volume sales in the last 13 weeks compared to pre-pandemic levels. “It is evident that we are delivering the brands and the products that consumers want.”
Incident under review
Newly appointed chief financial officer and executive vice president John Tyson, 32, the great-grandson of the Tyson Foods’ founder, addressed during the company’s earnings call an incident that led to him being charged with public intoxication and criminal trespassing.
“I'm embarrassed and I want to let you know that I take full responsibility for my actions. I also want to apologize to our investors as I have to our employees,” he said. “This was an incident inconsistent with our company values as well as my personal values. I just wanted you guys to hear this directly from me and to know that I'm committed to making sure this never happens again.”
King added that the matter is being taken seriously and that the company’s independent board of directors is overseeing a thorough review of the incident.