Tyson Foods posts US$13.8 billion in Q3 revenue

USA – Tyson Foods has released its third-quarter earnings for the period ending June 28, reporting mixed results across its key business units.

The company recorded a net income of US$61 million, or 18 cents per share, down from US$191 million in the same period a year earlier.

Quarterly revenue rose to US$13.8 billion, compared to US$13.4 billion the year before.

In its updated guidance, Tyson now expects full-year sales to grow between 2 and 3 percent in fiscal 2025, up from the earlier forecast of flat to 1 percent growth.

CEO Donnie King told analysts the company marked its fifth consecutive quarter of year-over-year growth in sales, adjusted operating income, and earnings per share.

He attributed this to targeted efficiency improvements across Tyson’s operations and a focus on customer value and innovation.

Adjusted operating income rose slightly to US$505 million from US$491 million in the prior-year quarter.

Chicken and prepared foods drive performance

Sales in the chicken segment increased 1.1 percent to US$4.22 billion, up from US$4.08 billion, while operating income rose to US$367 million from US$244 million.

King said the unit saw its third straight quarter of volume growth, with value-added products expanding at a faster rate than total segment volume.

Prepared foods also delivered stronger results, with sales rising to US$2.51 billion from US$2.43 billion and operating income increasing to US$302 million from US$203 million.

King said the segment returned to top-line growth and improved margins despite facing higher input costs.

Beef losses widen

The beef division posted sales of US$5.60 billion, up from US$5.24 billion, but reported an operating loss of US$494 million, compared to a loss of US$69 million last year.

The segment’s adjusted operating income showed a loss of US$151 million, and the company also recorded a US$343 million goodwill impairment charge tied to the unit.

King noted that cattle availability remains at historic lows, though signs of recovery in the herd are beginning to emerge.

Meanwhile, the pork segment reported an operating income of US$36 million, reversing a US$62 million loss the previous year, with sales rising to US$1.50 billion.

International sales dropped slightly to US$557 million from US$582 million, although operating income nearly doubled to US$49 million from US$25 million.

CFO Curt Calaway said Tyson expects a 2 percent drop in domestic beef production in 2025 and projects a beef operating loss between US$375 million and US$475 million.

He added that capital expenditures for fiscal 2025 are projected to stay at or below US$1 billion.

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