How did Tyson Foods perform in fiscal 2024 compared with fiscal 2023?

Sales were $53,309 million, up 0.8%. GAAP operating income improved to $1,409 million from a $(395) million loss, and GAAP EPS was $2.25 versus $(1.87). Adjusted operating income (non-GAAP) rose 95% to $1,820 million, and adjusted EPS (non-GAAP) rose 131% to $3.10.

What is the company's outlook for fiscal 2025?

Management guides to total company adjusted operating income of $1.8 billion to $2.2 billion and sales down 1% to flat. Chicken adjusted operating income is expected at $1.0 billion to $1.2 billion, Prepared Foods at $0.9 billion to $1.1 billion, and Pork at $0.1 billion to $0.2 billion, while Beef is expected to post an adjusted operating loss of $(0.4) billion to $(0.2) billion. The USDA projects domestic protein production to increase in fiscal 2025 overall, with beef production down approximately 2%.

How is the company's balance sheet and cash flow position?

Cash and cash equivalents rose to $1,717 million from $573 million. Total gross debt was $9,787 million and net debt was $8,060 million. Net debt to Adjusted EBITDA fell to 2.6x from 4.1x. Management expects free cash flow in fiscal 2025 to be greater than dividends and liquidity to remain above a $1.0 billion minimum target.

What changes were made to the dividend?

Effective November 8, 2024, the Board increased the quarterly dividend to $0.50 per Class A share and $0.45 per Class B share, payable December 13, 2024 to holders of record on November 29, 2024. The Board also declared the same amounts payable March 14, 2025. The company anticipates the remaining fiscal 2025 quarterly dividends at these rates.

What are the key non-GAAP measures and how should investors use them?

The filing presents adjusted operating income, adjusted EPS, EBITDA, Adjusted EBITDA, and free cash flow as non-GAAP measures. The company states that investors should rely primarily on GAAP results and use non-GAAP measures only supplementally. Reconciliations to GAAP figures are included in the exhibits, and the company says it cannot reconcile forward-looking adjusted guidance to GAAP without unreasonable effort.

TSN 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 12, 2024. Cited figures are marked; the original filing is the authoritative source.

Tyson Foods, Inc. (NYSE: TSN) reported fourth quarter and fiscal 2024 results for the periods ended September 28, 2024, emphasizing a significant improvement in profitability.

Fiscal 2024 sales were $53,309 million^a, up 0.8% from the prior year, while GAAP operating income rose to $1,409 million from a loss of $(395) million, and adjusted operating income (non-GAAP) reached $1,820 million, up 95%. GAAP EPS was $2.25 versus a loss of $(1.87) in fiscal 2023, and adjusted EPS (non-GAAP) was $3.10, up 131%. Cash provided by operating activities was $2,590 million, and free cash flow (non-GAAP) was $1,458 million.

Net debt to Adjusted EBITDA declined to 2.6x from 4.1x, and liquidity was approximately $4.0 billion^b as of September 28, 2024. For fiscal 2025, the company guides to total adjusted operating income of $1.8 billion to $2.2 billion, sales down 1% to flat, capital expenditures of $1.0 billion to $1.2 billion, net interest expense of approximately $380 million, and an adjusted tax rate of 24% to 25%. Segment guidance calls for a beef adjusted operating loss of $(0.4) billion to $(0.2) billion, offset by expected adjusted operating income of $1.0 billion to $1.2 billion in chicken, $0.9 billion to $1.1 billion in prepared foods, and $0.1 billion to $0.2 billion in pork.

The Board increased the quarterly dividend to $0.50^c per Class A share and $0.45 per Class B share, implying an annual dividend rate of $2.00 and $1.80, respectively, for fiscal 2025. The filing furnishes a press release (Exhibit 99.1) and a fourth quarter 2024 financial results presentation (Exhibit 99.2) under Item 2.02 and Item 9.01. Management highlighted that the company is optimistic about its outlook, citing its multi-protein, multi-channel portfolio and operational excellence as positioning it well for fiscal 2025 and beyond.

02—Key points

Key Highlights

Fiscal 2024 GAAP operating income of $1,409 million, up $1,804 million from a $(395) million loss in fiscal 2023; adjusted operating income of $1,820 million, up 95%.
Fiscal 2024 GAAP EPS of $2.25 (versus $(1.87)); adjusted EPS of $3.10, up 131% from prior year.
Fourth quarter 2024 sales of $13,565 million, up 1.6%, with GAAP operating income of $525 million versus a $(463) million loss a year earlier.
Cash provided by operating activities of $2,590 million and free cash flow (non-GAAP) of $1,458 million, compared with $(187) million free cash flow in fiscal 2023.
Net debt to Adjusted EBITDA reduced to 2.6x from 4.1x; liquidity of approximately $4.0 billion as of September 28, 2024.
Fiscal 2025 guidance: total company adjusted operating income of $1.8 billion to $2.2 billion, sales down 1% to flat, and capital expenditures of $1.0 billion to $1.2 billion.
Quarterly dividend increased to $0.50 per Class A share and $0.45 per Class B share, with an annual fiscal 2025 rate of $2.00 and $1.80, respectively.

03—Questions

Frequently Asked Questions

How did Tyson Foods perform in fiscal 2024 compared with fiscal 2023?
Sales were $53,309 million, up 0.8%. GAAP operating income improved to $1,409 million from a $(395) million loss, and GAAP EPS was $2.25 versus $(1.87). Adjusted operating income (non-GAAP) rose 95% to $1,820 million, and adjusted EPS (non-GAAP) rose 131% to $3.10.
What is the company's outlook for fiscal 2025?
Management guides to total company adjusted operating income of $1.8 billion to $2.2 billion and sales down 1% to flat. Chicken adjusted operating income is expected at $1.0 billion to $1.2 billion, Prepared Foods at $0.9 billion to $1.1 billion, and Pork at $0.1 billion to $0.2 billion, while Beef is expected to post an adjusted operating loss of $(0.4) billion to $(0.2) billion. The USDA projects domestic protein production to increase in fiscal 2025 overall, with beef production down approximately 2%.
How is the company's balance sheet and cash flow position?
Cash and cash equivalents rose to $1,717 million from $573 million. Total gross debt was $9,787 million and net debt was $8,060 million. Net debt to Adjusted EBITDA fell to 2.6x from 4.1x. Management expects free cash flow in fiscal 2025 to be greater than dividends and liquidity to remain above a $1.0 billion minimum target.
What changes were made to the dividend?
Effective November 8, 2024, the Board increased the quarterly dividend to $0.50 per Class A share and $0.45 per Class B share, payable December 13, 2024 to holders of record on November 29, 2024. The Board also declared the same amounts payable March 14, 2025. The company anticipates the remaining fiscal 2025 quarterly dividends at these rates.
What are the key non-GAAP measures and how should investors use them?
The filing presents adjusted operating income, adjusted EPS, EBITDA, Adjusted EBITDA, and free cash flow as non-GAAP measures. The company states that investors should rely primarily on GAAP results and use non-GAAP measures only supplementally. Reconciliations to GAAP figures are included in the exhibits, and the company says it cannot reconcile forward-looking adjusted guidance to GAAP without unreasonable effort.

04—Continue

← View all 8-K filings