01—Abstract
Summary
Summary of the 10-K filed November 12, 2024. Cited figures are marked; the original filing is the authoritative source.
Tyson Foods, Inc. (NYSE: TSN), a protein company headquartered in Springdale, Arkansas, reported fiscal 2024 (ended September 28, 2024) sales of $53.3 billiona versus $52.9 billion in fiscal 2023, with operating income of $1,409 million compared with an operating loss of $395 million a year earlier.
The improvement was driven by higher operating income in every segment other than Beef, which posted an operating loss of $381 millionb amid higher cattle costs and a legal contingency accrual. Net income attributable to Tyson was $800 million, or $2.25 per diluted share, against a loss of $648 million in fiscal 2023, which included a $781 million goodwill impairment. Fiscal 2024 results also absorbed $182 million of plant closure and disposal charges and $174 million of legal contingency accruals.
Cash flow from operations rose to $2,590 millionc from $1,752 million, and capital expenditures fell to $1,132 million from $1,939 million. Net debt to EBITDA improved to 2.8x from 9.1x, with total liquidity of $3,977 million at year end. The company expects fiscal 2025 capital expenditures of $1.0 billion to $1.2 billion and net interest expense of approximately $380 million.
Walmart Inc. accounted for 18.4% of fiscal 2024 consolidated sales. The Tyson Limited Partnership controls approximately 71.70% of total voting power, and the Board raised the quarterly dividend to $0.50d per Class A share effective November 8, 2024.
02—Key points
Key Highlights
- Sales of $53,309 million in fiscal 2024, up from $52,881 million, with higher average sales prices in the Beef segment driving the increase.
- Operating income of $1,409 million versus an operating loss of $395 million in fiscal 2023; the total operating margin was 2.6%.
- Segment operating margins: Chicken 6.0%, Prepared Foods 8.9%, while Beef (1.9)% and Pork (0.7)% were negative.
- Net income attributable to Tyson of $800 million ($2.25 per diluted share) compared with a net loss of $648 million in fiscal 2023, which included a $781 million goodwill impairment.
- Cash provided by operating activities of $2,590 million, up from $1,752 million, and capital expenditures of $1,132 million, down from $1,939 million.
- Net debt to EBITDA improved to 2.8x from 9.1x; total liquidity was $3,977 million at September 28, 2024, including a $2,250 million undrawn revolving credit facility.
- Ongoing legal exposure includes an Oklahoma environmental case seeking injunctive relief and multiple antitrust matters, with a $174 million legal contingency accrual recognized in fiscal 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Tyson Foods kept $0.02.
- Revenue$53.31B100.0%
- Cost of revenue−$49.68B93.2%
- Gross profit$3.63B6.8%
- Operating costs−$2.22B4.2%
- Operating income$1.41B2.6%
- Interest, other & tax−$609.0M1.1%
- Net income$800.0M1.5%
Where FY2024 revenue went
$53.31B- Cost of revenue: $49.68B, 93% of revenue
- Net income: $800.0M, 1.5% of revenue
- R&D: $106.0M, 0.2% of revenue
- SG&A: $2.22B, 4.2% of revenue
- Interest, other & tax: $609.0M, 1.1% of revenue
Kept 1.5% as net incomeNet income $800.0M · 1.5%R&D $106.0M · 0.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed November 12, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $53.31B$52.88B | +0.8% |
| Cost of Revenue | $49.68B$50.25B | −1.1% |
| Gross Profit | $3.63B$2.63B | +37.9% |
| R&D Expenses | $106.00M$114.00M | −7.0% |
| SG&A Expenses | $2.22B$2.25B | −1.2% |
| Operating Income | $1.41B-$395.00M | +456.7% |
| Net Income | $800.00M-$648.00M | +223.5% |
| EPS (Diluted) | $2.25$-1.87 | +220.3% |
| Shares Outstanding (Diluted) | 356.00M284.00M | +25.4% |
05—Questions
Frequently Asked Questions
How did Tyson Foods perform in fiscal 2024 compared with fiscal 2023?
Sales rose slightly to $53.3 billion from $52.9 billion. Operating income was $1,409 million, compared with an operating loss of $395 million in fiscal 2023, which had included a $781 million goodwill impairment. Net income attributable to Tyson was $800 million, or $2.25 per diluted share, versus a loss of $648 million the prior year.
Which segments drove results, and which lost money?
Chicken reported operating income of $988 million (6.0% margin) and Prepared Foods reported $879 million (8.9% margin). Beef reported an operating loss of $381 million, citing compressed margins, a legal contingency accrual and plant closure charges. Pork reported an operating loss of $40 million.
How strong is Tyson's balance sheet and liquidity?
Cash and cash equivalents were $1,717 million at September 28, 2024, and total liquidity was $3,977 million. Total debt was $9,787 million, and the ratio of net debt to EBITDA was 2.8x, down from 9.1x. The company stated it was in compliance with all debt covenants.
What are the main risks and legal matters disclosed?
Risks include commodity and feed grain price volatility, livestock disease outbreaks such as African swine fever and avian influenza, customer concentration with Walmart at 18.4% of sales, and product liability. Legal matters include broiler, pork and beef antitrust litigation, a wage rate litigation settlement of $115.5 million, and a long-running Oklahoma environmental case with an evidentiary hearing scheduled for December 2024.
Who controls Tyson Foods, and what is the dividend outlook?
The Tyson Limited Partnership and members of the Tyson family control approximately 71.70% of total voting power. The Board increased the quarterly dividend to $0.50 per Class A share and $0.45 per Class B share, effective November 8, 2024, and the company anticipates an annual fiscal 2025 dividend rate of $2.00 for Class A shares.
06—Continue