Tyson Foods, Inc. · NYSE:TSN

Tyson Foods — Q1 2025 Earnings Presentation

28 slides from Tyson Foods's earnings presentation, Feb 3, 2025

  1. Slide 1: Q1 Fiscal 2025 Supplemental Information

    Q1 Fiscal 2025 Supplemental Information February 3, 2025

  2. Slide 2: Forward-Looking Statements Non-GAAP

    Certain information in this presentation constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Forward-Looking Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2025, other

  3. Slide 3: Key Messages

    Key Messages Operations Strong start to FY25 with AOI1 up 60%, adjusted1 EPS up 65%; third consecutive quarter of YoY growth in Sales, AOI1, and adjusted1 EPS Guidance for FY25 Raising full-year guidance behind best AOI1 performance in more than 2 years Financial Strength Significant cash generation

  4. Slide 4: 1Q25 Segment Highlights

    1Q25 Segment Highlights Prepared Foods • Good progress on operational excellence initiatives • Full-year remains on track; outlook unchanged Chicken • Best AOI1 performance of any quarter over the past 8 years • Return to volume growth Beef • Better than expected results • Tight cattle supply expect

  5. Slide 5: FY25 Enterprise Priorities

    FY25 Enterprise Priorities Operational Excellence Striving for best-in-class operations by gaining efficiencies and eliminating waste, with strong impact in Prepared Foods Customer & Consumer Obsession Strengthening our iconic brands to expand reach and introduce innovation for new occasions Data &

  6. Slide 6: Enterprise Sales, AOI and EPS Performance

    Enterprise Sales, AOI and EPS Performance First Quarter FY25 vs Comparable Prior Year Period 1Q ADJUSTED OPERATING INCOME1 (in millions of dollars) in $m, except EPS (in $ per share) 1Q25 +2.3% Sales $13,623 vs PY $85 $26 ($9) ($30) $659 $176 +60% AOI1 $659 vs PY $411 AOI +170bps 4.8% Margin1 vs PY

  7. Slide 7: Prepared Foods on Track for FY25

    Prepared Foods on Track for FY25 1Q25 Sales AOI1 1Q25 $2,473 $234 (in $m) vs PY (2.8)% ($30) Volume: (3.2)% AOI %1: 9.5% Price: +0.4% YoY: (90) bps 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconciled to the most directly comparable GAAP financial measu

  8. Slide 8: Record Q1 AOI in Chicken

    Record Q1 AOI1 in Chicken 1Q25 Sales AOI1 1Q25 $4,065 $368 (in $m) vs PY +0.8% +$176 Volume: +1.5% AOI %1: 9.1% Price: (0.7)% YoY: +430 bps 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconciled to the most directly comparable GAAP financial measure in th

  9. Slide 9: Solid Performance in Beef

    Solid Performance in Beef 1Q25 Sales AOI1 1Q25 $5,335 $(32) (in $m) vs PY +6.2% +$85 Volume: +5.6% AOI %1: (0.6)% Price: +0.6% YoY: +170 bps 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconciled to the most directly comparable GAAP financial measure in t

  10. Slide 10: Pork In Line with Expectations

    Pork In Line with Expectations 1Q25 Sales AOI1 1Q25 $1,617 $59 (in $m) vs PY +6.6% ($9) Volume: (0.4)% AOI %1: 3.6% Price: +7.0% YoY: (90) bps 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconciled to the most directly comparable GAAP financial measure in

  11. Slide 11: Strong Cash Management and Improving Financial Position

    Strong Cash Management and Improving Financial Position Leverage Ratio (Net Debt/Adj. LTM EBITDA)1 FREE CASH FLOW 1 4.1x 3.9x (in millions of dollars) Build Financial 3.2x 3.6x 3.0x 2.4x 2.6x Strength 1.6x 2.3x $946 Manage our leverage ratio to be at or below 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24

  12. Slide 12: FY25 Guidance

    FY25 Guidance1 Sales Growth Flat – 1% Total AOI1 $1.9 – 2.3B Prepared Foods AOI1 $0.9 – 1.1B Net Interest Expense ~$375M Chicken AOI1 $1.0 – 1.3B Adjusted Tax Rate1 ~25% Beef AOI1 $(0.4) – (0.2)B Capital Expenditures $1.0 – 1.2B Pork AOI1 $0.1 – 0.2B Free Cash Flow1 $1.0 – 1.6B 1 The Company is not

  13. Slide 13: Protein remains a staple in the American diet

    • Protein remains a staple in the American diet with 71%1 of consumers looking to increase their protein intake • Multi-protein, multi-channel portfolio continues to deliver results • Raising guidance reflecting double-digit bottom-line growth and improving financial strength • One Team. One Tyson.

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  15. Slide 15: Appendix

    Appendix ‘TysonFoods

  16. Slide 16: AOI Bridge by P&L Items

    AOI Bridge by P&L Items First Quarter FY25 vs Comparable Prior Year Period $ millions $58 $659 $81 $96 $411 $13 1 2 Q1 2024 AOI Net Volume Impact Sales Price/Mix COGS Price/Mix 3 SG&A 4 Q1 2025 AOI 1 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconciled

  17. Slide 17: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Adjusted Operating Income (Loss), Adjusted Income (Loss) before Income Taxes, Adjusted Income Tax Expense (Benefit), Adjusted Net Income (Loss) Attributable to Tyson, Adjusted Operating Margin and Adjusted EPS, EBITDA, Adjusted EBITDA, net debt to EBITDA, net leverage rat

  18. Slide 18: GAAP Results to Non-GAAP Results Reconciliations

    GAAP Results to Non-GAAP Results Reconciliations $ in millions, except per share data (Unaudited) Results for the first quarter ended December 28, 2024 Selling, General Other Cost of Operating Income before Income Tax Net Income Attributable EPS Sales and (Income) Sales Income Income Taxes Expense t

  19. Slide 19: Adjusted Operating Income (Loss) Non-GAAP Reconciliations

    Adjusted Operating Income (Loss) Non-GAAP Reconciliations $ in millions (Unaudited) Adjusted Segment Operating Income (Loss) (for the first quarter ended December 28, 2024) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ (64) $ 59 $ 351 $ 209 $ 25 $ 580

  20. Slide 20: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions (Unaudited) Three Months Ended Fiscal Year Ended Twelve Months Ended December 28,2024 December 30, 2023 September 28, 2024 December 28,2024 Net income $ 366 $ 114 $ 822 $ 1,074 Less: Interest income (25) (10) (89) (104) Add: Interest

  21. Slide 21: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Twelve Months Ended September 28, 2024 September 30,2023 Net income (loss) $ 822 $ (649) Less: Interest income (89) (30) Add: Interest expense 481 355 Add/(Less): Income tax expense (benefit) 270 (29

  22. Slide 22: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Nine Months Ended Fiscal Year Ended Twelve Months Ended June 29, 2024 July 1, 2023 September 30, 2023 June 29, 2024 Net income (loss) $ 458 $ (206) $ (649) $ 15 Less: Interest income (60) (22) (30) (

  23. Slide 23: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Six Months Ended Fiscal Year Ended Twelve Months Ended March 30, 2024 April 1, 2023 September 30, 2023 March 30, 2024 Net income (loss) $ 262 $ 229 $ (649) $ (616) Less: Interest income (24) (16) (30

  24. Slide 24: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Three Months Ended Fiscal Year Ended Twelve Months Ended December 30,2023 December 31, 2022 September 30, 2023 December 30,2023 Net income (loss) $ 114 $ 320 $ (649) $ (855) Less: Interest income (10

  25. Slide 25: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Nine Months Ended Fiscal Year Ended Twelve Months Ended July 1, 2023 July 2, 2022 October 1, 2022 July 1, 2023 Net income (loss) $ (206) $ 2,712 $ 3,249 $ 331 Less: Interest income (22) (10) (17) (29

  26. Slide 26: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Six Months Ended Fiscal Year Ended Twelve Months Ended April 1, 2023 April 2, 2022 October 1, 2022 April 1, 2023 Net income (loss) $ 229 $ 1,959 $ 3,249 $ 1,519 Less: Interest income (16) (6) (17) (2

  27. Slide 27: EBITDA and Adjusted EBITDA Non-GAAP Reconciliations

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliations $ in millions, except per share data (Unaudited) Three Months Ended Fiscal Year Ended Twelve Months Ended December 31, 2022 January 1, 2022 October 1, 2022 December 31, 2022 Net income (loss) $ 320 $ 1,126 $ 3,249 $ 2,443 Less: Interest income (9)

  28. Slide 28: Free Cash Flow Non-GAAP Reconciliation

    Free Cash Flow Non-GAAP Reconciliation $ in millions (Unaudited) Twelve Months Ended December 28, 2024 December 30, 2023 Cash Provided by Operating Activities $ 1,031 $ 1,300 Additions to property, plant and equipment (271) (354) Free cash flow $ 760 $ 946 TYSON FOODS, INC. February 3, 2025 28

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