SPRINGDALE, Ark. — Tyson Foods Inc. has reported its first quarter 2023 the following results. Some of the highlights include: sales of $13.260 billion up 2.5 percent from prior year; GAAP operating income of $467 million, down 68 percent from prior year; adjusted operating income of $453 million, down 68 percent from prior year; GAAP EPS of 88 cents, down 71 percent from prior year; Adjusted EPS of 85 cents, down 70 percent from prior year; total company GAAP operating margin of 3.5 percent; adjusted operating margin (non-GAAP) of 3.4 percent; repurchased 4.9 million shares for $313 million; and liquidity of $2.9 billion at Dec. 31, 2022.
“We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health,” said Tyson Foods President and CEO Donnie King. “The strength of our retail brands, including Tyson®, Jimmy Dean®, Hillshire Farm®, and Ball Park, was demonstrated by the growth in Prepared Foods, most notably with Jimmy Dean ending the quarter at its all-time highest volume share. Our advantaged brands in advantaged categories uniquely position us to win in the marketplace.”
“We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability,” King said. “We expect to improve our performance through the back half of fiscal 2023 and into the future, as we strive to execute with excellence and work to become best in class in our industry.”
“We are optimistic about the long-term outlook for Tyson,” he added. “We have the world’s greatest protein brands, an incredible team, and a sound strategy to serve our customers and delight consumers with high-quality, sustainable, affordable protein.”
USDA projects chicken production will increase approximately 3 percent in fiscal 2023 as compared to fiscal 2022. Tyson Foods reports that it anticipates an adjusted operating margin of 2 percent to 4 percent for fiscal 2023.
- New team member benefits
Tyson Foods also announced new changes and investments aimed at further intensifying U.S. team members relationships and enhancing workplace culture. Specifically, the company is making changes to U.S. based policies and practices related to healthcare and overall wellness.
The company’s new policies and investments are in addition to recent compensation benefits. Tyson recently announced it invested more than $50 million in thank you bonuses and $100 million in wage increases for U.S. hourly workers over the past year.
Tyson Foods has invested more than $20 million this year to offer longer parental leave, additional mental health support and other wellness and health plan benefits at no additional cost to team members to further enhance Team Member wellbeing as part of the company’s caring and inclusive culture. The company increased its parental leave program to include eight weeks paid leave for mothers and two weeks paid leave for U.S. team members whose spouse or partner gave birth to provide bonding time with their new family member. The company also continues to offer four weeks of paid parental leave for adoptive parents.
“This is yet another step that Tyson Foods is taking to show how we align our actions with our values and prioritize the health and wellbeing of our team members,” said Johanna Soderstrom, chief people officer, Tyson Foods. “The new offerings reinforce our commitment to ensuring we offer equitable and market competitive programs to our team members and align with our vision to become the most sought-after place to work.”
This spring, Tyson team members will also have access to a personalized well-being portal to help manage their health and wellbeing. The feature will included physical, emotional, financial, and social well-being benefits and resources team members can access to guide them on their health journey.
Tyson adds that it also provides a whole range of competitive benefits like access to full health care on day one of employment, opportunities for education and life-skill development through the Tyson Immigration Partnership (TIP) as well as the company’s Upward Academy program, which also offers free and accessible classes in English as a Second Language (ESL), High School Equivalency (HSE), financial literacy and digital literacy.
In 2022, Tyson expanded Upward Academy to provide free education for U.S. team members. The company’s investment covers 100 percent of all tuition, books and fees and will include access to more than 200 programs from over 35 top universities and learning providers. They are also addressing the barriers of transportation through a growing ride-share program that provides a low-cost way to commute to work at Tyson.
To learn more about all the benefits Tyson Foods offers its team members, visit www.tysonfoods.com.
