01—Abstract
Summary
Summary of the 10-Q filed February 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Tyson Foods, Inc. reported its unaudited results for the first quarter of fiscal 2025, the three months ended December 28, 2024.
Sales were $13.62 billiona, up from $13.32 billion a year earlier, with the filing attributing the increase to higher sales in the Beef, Pork and Chicken segments, partially offset by lower Prepared Foods sales. Operating income rose to $580 million from $231 million, and net income attributable to Tyson was $359 million, or $1.01 per diluted share, compared with $107 million, or $0.30 per diluted share, in the prior-year quarter. The company cited $73 million of network optimization plan charges and $6 million of brand discontinuation charges in the quarter, while the prior-year quarter included $75 million of plant closure charges and $73 million of legal contingency accruals.
Segment results improved in Beef, where operating loss narrowed to $64 millionb from $206 million, Pork, Chicken and International/Other, while Prepared Foods operating income declined to $209 million from $243 million. Cash provided by operating activities was $1.03 billion, down from $1.30 billion, and cash and cash equivalents ended the quarter at $2.29 billion. Total debt was $9.81 billion.
After the quarter, on January 29, 2025, the company repaid its $750 millionc term loan due May 2026 using cash on hand. The filing also highlights ongoing contingencies, including broiler, pork and beef antitrust matters, a poultry wage rate litigation settlement of $115.5 million pending court approval, and a Mexican tax assessment of approximately $448 million that the company does not believe has merit and for which it has not recorded a liability. The company stated it expects capital expenditures of $1 billion to $1.2 billion and net interest expense of about $375 million for fiscal 2025.
02—Key points
Key Highlights
- Sales rose to $13.62 billion from $13.32 billion, driven by Beef, Pork and Chicken, partially offset by Prepared Foods.
- Operating income increased to $580 million from $231 million; total operating margin was 4.3%.
- Net income attributable to Tyson was $359 million, or $1.01 per diluted share, versus $107 million, or $0.30 per diluted share, a year earlier.
- Beef segment operating loss narrowed to $64 million from $206 million, with operating margin of (1.2)%.
- Chicken segment operating income more than doubled to $351 million from $177 million, with operating margin of 8.6%.
- Prepared Foods operating income fell to $209 million from $243 million on lower sales volume and higher raw material costs.
- Cash and cash equivalents rose to $2.29 billion, and the company repaid a $750 million term loan due May 2026 on January 29, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Tyson Foods kept $0.03.
- Revenue$13.62B100.0%
- Cost of revenue−$12.53B92.0%
- Gross profit$1.09B8.0%
- Operating costs−$515.0M3.8%
- Operating income$580.0M4.3%
- Interest, other & tax−$221.0M1.6%
- Net income$359.0M2.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed February 3, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $13.62B$13.32B | +2.3% |
| Cost of Revenue | $12.53B$12.50B | +0.3% |
| Gross Profit | $1.09B$823.00M | +33.0% |
| SG&A Expenses | $515.00M$592.00M | −13.0% |
| Operating Income | $580.00M$231.00M | +151.1% |
| Net Income | $359.00M$107.00M | +235.5% |
| EPS (Diluted) | $1.01$0.30 | +236.7% |
| Shares Outstanding (Diluted) | 357.00M355.00M | +0.6% |
05—Questions
Frequently Asked Questions
How did Tyson Foods perform in the first quarter of fiscal 2025?
Sales were $13.62 billion, up from $13.32 billion, and operating income was $580 million compared with $231 million a year earlier. Net income attributable to Tyson was $359 million, or $1.01 per diluted share, versus $107 million, or $0.30 per diluted share, in the prior-year quarter.
Which segments drove the improvement, and which declined?
Beef, Pork, Chicken and International/Other all improved operating income. Chicken rose to $351 million and Beef's loss narrowed to $64 million. Prepared Foods declined to $209 million from $243 million, reflecting lower sales volume and higher raw material costs.
What restructuring charges did Tyson record this quarter?
The company recognized $73 million of network optimization plan charges, including closures of two Prepared Foods facilities, a Beef non-harvesting facility closure and Chicken asset write-offs. It expects a total of $93 million of charges for actions approved to date, and it said it is unable to estimate the cost of the entire plan.
What are the main legal and tax risks disclosed?
The filing describes broiler, pork and beef antitrust litigation and related government investigations, along with a poultry wage rate settlement of $115.5 million that remains subject to court approval. Tyson also disclosed a Mexican tax assessment of about $448 million, which it believes has no merit and for which it has not recorded a liability.
How strong is the company's liquidity and what are its fiscal 2025 expectations?
Total liquidity was $4.54 billion, including $2.29 billion of cash and a $2.25 billion undrawn revolving credit facility. The company expects capital expenditures of $1 billion to $1.2 billion and net interest expense of about $375 million for fiscal 2025.
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