Meat processing powerhouse Tysons Foods reported strong earnings and beat fourth quarter revenue expectations, the company reported Monday. Buoyed by "a record year in its beef segment and looking to the future with a plan to deliver more than $1 billion in productivity gains over the next three years,” the report shows signs of broad strength for the company.
Tyson earned $12.81 billion in revenue, beating estimates and increasing from $11.46 billion in the third quarter of 2020. Year-to-date, Tysons (TSN) has risen from $63.50 a share to $81.00 a share as of November 15.
Tyson reported positive operating income data as well, noting that its adjusted operating income of $1.15 billion in the quarter is 26% higher than the $911 million reported at the same period last year”. For fiscal year 2021, Tyson took in $47.05 billion in sales, compared to $42.37 billion in fiscal 2020. The company expects sales of $49 billion to $51 billion in fiscal 2022.
Tysons CFO Stewart Glendenning announced on the investors' earnings call that the food processing company expects to pass increasing costs along to its customers. "We expect to take continued pricing actions to ensure that any inflationary cost increases ... are passed along. Our pricing has lagged inflation, but we expect to recover those cost increases during fiscal '22."
Executives also said Tyson is trying to revamp its image as a more inviting workplace. Tysons has long been criticized for its working conditions, but new initiatives, partially aimed at easing a labor shortage, have recently been announced. Initiatives for employees such as childcare benefits, raising average hourly wages to $24, sick pay and a wider range of health benefits have been announced, alongside the new hiring of a chief diversity officer to increase efforts of inclusion.
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