SPRINGDALE, ARK. – Tyson Foods Inc.’s latest earnings reports showed some gains, particularly for the chicken business segment during its fourth quarter and for the fiscal year.

In the fiscal fourth quarter, ended Sept. 28, 2024, the company’s operating income was $525 million, or 92¢ per share on the common stock, compared to an operating income loss of $463 million, or 37¢ per share of the common stock in Q4 of 2023.

Tyson reported a lower operating margin of 3.9% for the quarter compared to 3.5% during the same period last year. Sales for the fiscal fourth quarter increased by 1.6% to $13.56 billion, compared to $13.35 billion in 2023. 

“We delivered significant improvement in profitability for the fourth quarter and full year,” said Donnie King, president and chief executive officer of Tyson Foods. “We also strengthened our financial position, with solid cash flow generation and a substantial reduction of our net leverage ratio. Looking ahead, we are optimistic about our outlook and our ability to deliver long-term value to our shareholders. Our multi-protein, multi-channel portfolio, combined with our best-in-class team, iconic brands, and focus on operational excellence, positions us well for Fiscal 2025 and beyond.”

Prices were slightly up during the fourth quarter, the company said, starting with chicken at 0.2% higher and 0.2% for the entire Tyson business. Annual prices were up 0.6% overall. However, chicken stood at 2.4% lower, and the company’s prepared foods segment was at 0.8% lower.

Sales for the fiscal year were slightly down from the previous year, totaling $53.31 billion compared to $52.88 billion in fiscal year 2023. Net income for the year was $800 million over the previous year’s loss of $648 million. Quarterly net income increased to $357 million compared to a $450 million loss 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 beef segment reported an operating income loss during the quarter of $71 million, improving from the $323 million loss in Q4 of 2023.

For the year, operating income for beef declined to a $381 million loss compared to a $91 million loss in 2023. Sales of beef for the quarter increased to $5.26 billion compared to $5.03 billion in 2021. Yearly beef sales also increased to $20.48 billion over 2023, $19.33 billion. 

In its outlook, Tyson stated that numbers from the US Department of Agriculture indicated that domestic protein production should increase in fiscal year 2025 compared to fiscal 2024 levels.

Operating income also declined in Tyson’s pork segment, with a reported loss of $16 million, compared with a loss of $11 million in the same quarter of fiscal 2023. 

Sales of pork were $1.44 billion for the quarter and $5.90 billion for the year. Sales volume was up for the quarter (by 3.2%) and for the year (by 3.8%).

Tyson’s chicken business displayed some solid numbers in the fourth quarter, with sales of $4.25 billion; however, there was a sales volume decrease of 0.7%. Chicken sales for the year were $16.43 billion compared to $17.06 billion in 2023. Chicken volumes increased by 3.8% in 2024 compared to the same period in the prior year.

Tyson noted that the USDA projects chicken production to increase approximately 3% in fiscal 2025 compared to this year. The company anticipates an adjusted operating income of $1 billion to $1.2 billion next fiscal year.

In the prepared foods segment, higher average sales prices were up slightly by 0.2%, with sales down at $2.47 billion for the quarter compared to $2.50 billion in the same quarter last year. For the year, sales bumped to $9.851 billion in fiscal 2024 compared to $9.846 billion in 2023, a sales volume increase of 0.9%. 

Operating income for the quarter and the year increased to $203 million and $879 million respectively. Compared to the previous year, quarterly operating margins went up slightly to 8.2% in 2024 from 4.7% in 2023 and for the year, to 8.9% in 2024 compared to 8.4% in 2023.

The company’s international segment performance reflected lower sales for the quarter. Quarterly sales were $609 million in 2024, a decrease over 2023’s $636 million. Annual sales for the segment also decreased to $2.35 billion in fiscal 2023 compared to $2.52 billion the previous year.