Tyson Foods reported significant improvements in its financial performance for the fiscal year ending Sept. 28, largely driven by its Poultry and Prepared Foods segments. Despite challenges from a reduced cattle supply impacting the beef industry, the company achieved better results through operational efficiency and strategic adjustments.
For the fiscal year, Tyson Foods posted a profit of $800 million, reversing a $649 million loss from the previous year. Annual sales rose slightly to $53.3 billion, up from $52.9 billion in fiscal 2023. The fourth quarter also showed improvement, with Tyson earning $357 million compared to a loss of $450 million in the same period last year. Quarterly sales increased from $13.3 billion to $13.6 billion.
The Poultry segment delivered notable gains, with sales rising 2.3% in the fourth quarter to $4.25 billion. Operating income for the quarter surged to $356 million, a dramatic improvement from $75 million in the prior year. For the full year, Poultry operating income reached $1.02 billion, compared to a $77 million loss in fiscal 2023. These results were attributed to better alignment of supply and demand, lower input costs, and improved operational efficiencies.
The Prepared Foods segment also showed steady progress. Quarterly sales slightly dipped to $2.47 billion, but operating income grew 30% year-over-year to $205 million. For the full year, operating income increased nearly 2%, reaching $905 million. Tyson highlighted opportunities for further profitability by enhancing efficiency, reducing waste, and improving service levels.
The Beef segment faced headwinds due to a tighter cattle supply, which affected profitability despite a rise in sales. Operating income for the year showed a loss of $291 million, a decline from the $233 million in income recorded in fiscal 2023. Meanwhile, the Pork segment saw modest growth, with annual sales rising 2.2% to $5.9 billion. Improved margins and increased volume helped offset lower average prices.
Tyson’s focus on controlling capital expenditures also contributed to its financial turnaround. Spending decreased from nearly $1.94 billion in fiscal 2023 to just over $1.1 billion in fiscal 2024. For fiscal 2025, the company expects capital investments to remain steady at approximately $1 billion to $1.2 billion, emphasizing maintenance and profit-improvement initiatives.
Looking ahead, Tyson projects flat or slightly lower sales for fiscal 2025. However, growth in operating income is expected, driven by continued success in the Poultry and Prepared Foods segments, with total company adjusted operating income forecasted between $1.8 billion and $2.2 billion.
