Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q1 2024 Earnings Presentation
22 slides from Tyson Foods's earnings presentation, Feb 5, 2024
Slide 1: Q1 Fiscal 2024 Supplemental Information
— Q1 Fiscal 2024 Supplemental Information February 5, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Certain information in this presentation constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2023, other future economic
Slide 3: 1Q24 Key Messages
1Q24 Key Messages 1 Promising start to FY24 – seeing benefits of core protein portfolio 2 Focused on controllables – tangible results from actions and strategy 3 Brands resonating with consumers – share remains healthy 4 Committed to driving long-term value for shareholders TYSON FOODS, INC. FEBRUAR
Slide 4: Brands and market share remain strong
Brands and market share remain strong Tyson Core Business Lines Pound Share Fiscal Q1 Pound Share Trend 27.7% 27.5% 25.7% 25.8% 24.7% 23.2% Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 • 1Q24 volume share remains strong; challenging comparison to record share last year • Core Business Lines have grown
Slide 5: Segment Highlights
Segment Highlights Prepared Foods Chicken • Continued traction with Food Service volume • 3rd consecutive quarter of $100M+ sequential recovery AOI1 improvement • Lower raw material costs and operating • Accelerated realization of benefits from plant efficiencies driving solid AOI1 closures and impr
Slide 6: Fiscal 2024 Priorities – Controlling the Controllables
Fiscal 2024 Priorities – Controlling the Controllables Our Priorities 1 Focus on capex & working capital to drive cash flow & support dividend Win with customers and consumers Win with team members 2 Continually optimize manufacturing footprint & network design Win with excellence in execution 3 Res
Slide 7: Sales, AOI and EPS performance
Sales, AOI and EPS performance First Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 (in millions of dollars) (in millions of dollars) (in dollars per share) $13,260 $13,319 $0.85 $87 $4 -$2 -$246 $0.69 $115 $453 $411 $0.37 1Q23 1Q24 1Q23 Chicken Pork Int'
Slide 8: Strong performance in Prepared Foods
Strong performance in Prepared Foods First Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) o Volume growth driven by Williams acquisition and $2,543 Foodservice o Average sales price decreased primarily due to
Slide 9: Strategic actions driving improved results in Chicken
Strategic actions driving improved results in Chicken First Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) o Modest volume decrease driven by lower $4,263 production offset by sell-through of finished goods i
Slide 10: Beef industry fundamentals remain challenging
Beef industry fundamentals remain challenging First Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) $5,023 o Sales increased driven by higher price per pound $129 offset by lower head throughput $4,723 o Opera
Slide 11: Improving spreads in Pork
Improving spreads in Pork First Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) $68 $1,529 o Sales decline driven by lower pricing offset by $1,517 volume growth o Operating income increased as spreads improve
Slide 12: Strong cash generation and improving financial health
Strong cash generation and improving financial health OPERATING CASH FLOW Leverage Ratio (in billions of dollars) BUILD 3.9x (Net Debt/Adj. EBITDA)1 FINANCIAL <2.0x STRENGTH Manage our leverage ratio to be at or below our long-term target Q1'24 Long-term Target Capital Expenditures (in billions) INV
Slide 13: Revised guidance
Revised guidance FY2024 Guidance2 Prior Indication Revised Indication Sales ~Flat Unchanged Prepared Foods AOI1 $800M - $1B Unchanged Chicken AOI $400-700M $500-700M Beef AOI1 $(400)-0M Unchanged Pork AOI1 ~Breakeven $0-100M Total AOI1 $1.0B - 1.5B Unchanged Capital Expenditures $1.0B – 1.5B Unchang
Slide 14: Q&A
Q&A Donnie King John R. Tyson Brady Stewart Melanie Boulden Wes Morris Amy Tu President & CEO CFO Group President, Group President, Group President, President, International Beef, Pork and Chief Prepared Foods and Poultry Supply Chain Officer Chief Growth Officer
Slide 15: Appendix
Appendix
Slide 16: Segment Sales Channel Bridge
Segment Sales Channel Bridge First Quarter FY24 vs Comparable Prior Year Period $ millions $300 -$12 -$30 $261 $13,319 $5 -$230 $13,260 Retail Retail Foodservice Foodservice Retail Retail Export Export Foodservice Foodservice Industrial/ Industrial/ Other Export Export Other Industrial/ Industrial/
Slide 17: AOI Bridge by P&L Items
AOI Bridge by P&L Items First Quarter FY24 vs Comparable Prior Year Period $ millions -$26 $61 -$77 $453 $- $411 Q1 2023 AOI Net Volume Impact 2 Sales Price/Mix COGS Price/Mix 3 SG&A 4 Q1 2024 AOI 2 Represents the net impact of the change in Sales and change in COGS attributable to increased sales v
Slide 18: 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 and Adjusted EPS, EBITDA, Adjusted EBITDA, net debt to EBITDA and net debt to Adjusted EBITDA are presente
Slide 19: 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 30, 2023 Selling, General Other Net Income Cost of Operating Income before Income Tax EPS Sales and (Income) Attributable to Sales Income Income Taxes Expens
Slide 20: 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 30, 2023) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ (206) $ 39 $ 177 $ 243 $ (22) $
Slide 21: 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
Slide 22: Chicken Segment Operating Income (Loss) Reconciliations
Chicken Segment Operating Income (Loss) Reconciliations $ in millions (Unaudited) Three Months Ended July 1, 2023 April 1, 2023 Change Reported operating income (loss) $ (314) $ (258) $ (56) (Less): Production facilities fire insurance proceeds, net of costs 2 (22) - (22) Add: Restructuring and rela