SPRINGDALE, ARK. – Tyson Foods Inc. detailed some positives and struggles in the poultry and red meat markets with lower chicken and pork prices and lesser demand for beef.

In the fiscal fourth quarter that ended Sept. 30, 2023, the company’s operating income loss declined 160% to $463 million, or 37¢ per share on the common stock, compared to $766 million, or $1.63 per share of the common stock in Q4 of 2022.

Tyson reported a lower operating margin loss of 3.5% for the quarter compared to 5.6% during the same period last year. Sales for the fiscal fourth quarter decreased by 2.9% to $13.35 billion, compared to $13.74 billion in 2022. 

“While economic headwinds persist, we are moving in the right direction and managing what we can control,” said Donnie King, president and chief executive officer of Tyson Foods. “The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”

Prices declined during the fourth quarter, the company said, starting with chicken at 9.2% lower and 1.4% lower overall. Annual prices were down 1.5% overall, which included chicken, at 1.9% lower, and the company’s prepared foods segment, at 1.3%.

Sales for the fiscal year were slightly down from the previous year, totaling $52.88 billion compared to $53.28 billion in fiscal year 2022. Net income for the year showed a $648 million loss over the previous year’s $3.25 billion. Quarterly net income declined to a $443 million loss compared to $537 million during the same period last year. The company expects full-year sales projections for 2024 to be relatively flat compared to this year.

Tyson’s quarterly beef segment’s operating income also declined from last year, to a $323 million loss. Average beef prices increased by 10.2% with lower demand for beef in the market.

For the year, operating income for beef stood at a $91 million loss compared to $2.50 billion. Sales for the quarter increased to $5.03 billion compared to $4.86 billion in 2022. However, for the year decreased to $19.33 billion over 2022’s $19.85 billion. 

Tyson stated that the USDA projects domestic beef production will decrease about 5% in fiscal 2024 compared to this year. The company anticipated an adjusted operating income loss between $400 million and breakeven for fiscal 2024.

Operating income also declined in Tyson’s pork segment, with a reported loss of $11 million, compared with a loss of $55 million in the same quarter of fiscal 2022. 

Sales of $1.49 billion for the quarter and $5.77 billion for the year reflected decreases of 7.4% and 11% respectively. Sales volume dropped for the quarter (by 0.2%) and the year (by 2.2%) as the quarterly fiscal year price change decreased.

Tyson’s chicken business segment realized a quarterly profit, with a sales volume increase of 1.7% on sales of $4.15 billion. Chicken sales for the year stood at $17.06 billion compared to $16.96 billion in 2022. Chicken volumes increased by 3.4% in the quarter compared to the same period in the prior year, driven by increased domestic production.

Tyson stated that the USDA is projecting a slight increase in chicken production compared to fiscal 2023. The company anticipates an adjusted operating income of $400 million to $700 million next fiscal year.

In the prepared foods segment, higher average sales prices were down 1.6%, with sales at $2.50 billion for the quarter compared to $2.52 billion in the same quarter last year. For the year, sales bumped to $9.85 billion in fiscal 2023 compared to $9.69 billion in 2022, a sales volume increase of 1.3%. 

Operating income for the quarter and the year went up to $118 million and $823 million respectively. Compared to the previous year, quarterly operating margins went up slightly to 4.7% in 2023 from 4.4% in 2022 and for the year, to 8.4% in 2022 compared to 7.7% in 2022.

The company’s international segment’s performance also reflected lower sales for the quarter and varied results in operating income. Quarterly sales were $636 million in 2023, a decrease of 0.3% over 2022’s $638 million, while annual sales increased 6.4% to $2.52 billion in fiscal 2023 compared to $2.36 billion the previous year.