Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q4 2024 Earnings Presentation
34 slides from Tyson Foods's earnings presentation, Nov 12, 2024
Slide 1: Q4 Fiscal 2024 Supplemental Information
Q4 Fiscal 2024 Supplemental Information November 12, 2024
Slide 2: Forward-Looking Statements and Non-GAAP
Forward-Looking 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 2025, other
Slide 3: Key Messages
Key Messages Operations Strong performance in 4Q24 with AOI more than doubling wraps up impressive YoY improvement for FY24 Financial Strength Significant cash generation with free cash flow more than 2x dividend and substantial reduction of net leverage ratio to 2.6x Guidance for FY25 Solid growth
Slide 4: FY24 Segment Highlights
FY24 Segment Highlights Prepared Foods • AOI1 performance in line with expectations resulting in best full year since FY18 • Full year volume growth in total outside of retail Chicken • Strong finish drives best full year AOI1 performance since FY17 • Market tailwinds and operational efficiencies dr
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 &
Slide 6: FY25 Segment Priorities – Prepared Foods
FY25 Segment Priorities – Prepared Foods Operational Excellence • Enhance throughput and yield; eliminate waste • Reduce SKU complexity • Improve service levels Customer & Consumer Obsession • Advance platform innovations • Expand distribution on top performing SKUs Data & Digital Delivery • Data-dr
Slide 7: FY25 Segment Priorities – Chicken
FY25 Segment Priorities – Chicken Operational Excellence • Continuous improvement in live, plant operations and disciplined S&OP Customer & Consumer Obsession • Focus on long-term, win-win partnerships with customers • Invest in value-added products including the #1 brand in Chicken Capital Allocati
Slide 8: FY25 Segment Priorities – Beef
FY25 Segment Priorities – Beef Operational Excellence • Manage yield, mix and efficiency to enhance cost structure • Align cattle procurement to support customer and consumer demand Customer & Consumer Obsession • Continue to invest in value-added capabilities in areas of strong demand • Target cate
Slide 9: FY25 Segment Priorities – Pork
FY25 Segment Priorities – Pork Operational Excellence • Drive capacity utilization through the network • Continue to optimize yield and mix Customer & Consumer Obsession • Continue to invest in value-added capabilities in areas of strong demand • Target category leadership and strengthen customer pa
Slide 10: Growing Contribution from Prepared Foods & Chicken
Growing Contribution from Prepared Foods & Chicken Prepared Foods Chicken (in millions of dollars) (in millions of dollars) ~228% ~25% $1,100 $1,000 $1,015 $905 $799 $335 FY19 – ‘23 FY24 FY25 FY19 – ‘23 FY24 FY25 Average Midpoint2 Average Midpoint2 % of Total Company AOI1: ~25% ~50% ~10% > 50% 1 Rep
Slide 11: Enterprise Sales, AOI and EPS Performance
Enterprise Sales, AOI and EPS Performance Fourth Quarter FY24 vs Comparable Prior Year Period 4Q ADJUSTED OPERATING INCOME1 (in millions of dollars) in $m, except EPS (in $ per share) 4Q24 +1.6% Sales $13,565 vs PY $54 $27 $2 $(88) $281 $512 +117% AOI1 $512 vs PY AOI +200bps 3.8% vs PY $236 Margin1
Slide 12: Growing Profitability in Prepared Foods
Growing Profitability in Prepared Foods 4Q24 & FY24 Sales AOI1 Sales AOI1 4Q24 $2,472 $205 FY24 $9,851 $905 (in $m) (in $m) vs PY (1.2)% +$54 vs PY +0.1% +$16 Volume: (1.4)% AOI %1: 8.3% Volume: +0.9% AOI %1: 9.2% Price: +0.2% YoY: +230 bps Price: (0.8)% YoY: +20 bps 1 Represents a non-GAAP financia
Slide 13: Fundamentally Stronger Chicken Business
Fundamentally Stronger Chicken Business 4Q24 & FY24 Sales AOI1,2 Sales AOI1,2 4Q24 $4,251 $356 FY24 $16,425 $1,015 (in $m) (in $m) vs PY +2.3% +$281 vs PY (3.7)% +$1,092 Volume: (0.7)% AOI %1,2: 8.4% Volume: (2.2)% AOI %1,2: 6.2% Price2: +0.2% YoY: +660 bps Price2: (2.4)% YoY: +660 bps 1 Represents
Slide 14: Navigating Industry Challenges in Beef
Navigating Industry Challenges in Beef 4Q24 & FY24 Sales AOI1 Sales AOI1 4Q24 $5,261 $(71) FY24 $20,479 $(291) (in $m) (in $m) vs PY +4.6% $(88) vs PY +6.0% $(524) Volume: +3.7% AOI %1: (1.3)% Volume: +1.6% AOI %1: (1.4)% Price: +0.9% YoY: (160) bps Price: +4.4% YoY: (260) bps 1 Represents a non-GAA
Slide 15: Strong YOY Improvement in Pork Profitability
Strong YOY Improvement in Pork Profitability 4Q24 & FY24 Sales AOI1 Sales AOI1,2 4Q24 $1,438 $19 FY24 $5,903 $142 (in $m) (in $m) vs PY (3.7)% +$27 vs PY +2.3% +$270 Volume: +3.2% AOI %1: 1.3% Volume: +3.8% AOI %1,2: 2.4% Price: (6.9)% YoY: +180 bps Price2: (0.7)% YoY: +460 bps 1 Represents a non-GA
Slide 16: Robust Cash Flow and Strengthening Financial Position
Robust Cash Flow and Strengthening 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 $1,458 Manage our leverage ratio to be at or below 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 our l
Slide 17: FY25 Guidance
FY25 Guidance1 Sales Growth (1)% – Flat Total AOI1 $1.8 – 2.2B Prepared Foods AOI1 $0.9 – 1.1B Net Interest Expense ~$380M Chicken AOI1 $1.0 – 1.2B Adjusted Tax Rate1 ~24 – 25% Beef AOI1 $(0.4) – (0.2)B Capital Expenditures $1.0 – 1.2B Pork AOI1 $0.1 – 0.2B Free Cash Flow1 > Dividend 1 The Company i
Slide 18: Closing summary: profitability, priorities and FY25 outlook
• Significant improvement in profitability and financial health in FY24 • Consistently delivering on our strategic priorities • Continuing upward momentum with ~10% AOI growth in FY25 at midpoint driven by Prepared Foods and Chicken • One Team. One Tyson.
Slide 19: Tyson Foods brands
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Slide 20: Appendix
Appendix
Slide 21: AOI Bridge by P&L Items
AOI Bridge by P&L Items Fourth Quarter FY24 vs Comparable Prior Year Period $ millions $37 $512 $209 $27 $236 $3 1 2 3 4 5 Q4 2023 AOI Net Volume Impact Sales Price/Mix COGS Price/Mix SG&A Q4 2024 AOI 1 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconcil
Slide 22: 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
Slide 23: GAAP Results to Non-GAAP Results Reconciliations
GAAP Results to Non-GAAP Results Reconciliations $ in millions, except per share data (Unaudited) Results for the fourth quarter ended September 28, 2024 Selling, General Operating Other Income (Loss) Income Tax Cost of Goodwill Net Income (Loss) EPS Sales and Income (Income) before Income Expense S
Slide 24: GAAP Results to Non-GAAP Results Reconciliations
GAAP Results to Non-GAAP Results Reconciliations $ in millions, except per share data (Unaudited) Results for the twelve months ended September 28, 2024 Selling, General Operating Other Income (Loss) Income Tax Cost of Goodwill Net Income (Loss) EPS Sales and Income (Income) before Income Expense Sa
Slide 25: Adjusted Operating Income (Loss) Non-GAAP Reconciliations
Adjusted Operating Income (Loss) Non-GAAP Reconciliations $ in millions (Unaudited) Adjusted Segment Operating Income (Loss) (for the fourth quarter ended September 28, 2024) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ (71) $ (16) $ 409 $ 203 $ - $
Slide 26: Adjusted Operating Income (Loss) Non-GAAP Reconciliations
Adjusted Operating Income (Loss) Non-GAAP Reconciliations $ in millions (Unaudited) Adjusted Segment Operating Income (Loss) (for the twelve months ended October 1, 2022) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ 2,502 $ 193 $ 955 $ 746 $ 14 $ 4,4
Slide 27: 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
Slide 28: 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) (
Slide 29: 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
Slide 30: 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 31: 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
Slide 32: 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
Slide 33: 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)
Slide 34: Free Cash Flow Non-GAAP Reconciliation
Free Cash Flow Non-GAAP Reconciliation $ in millions (Unaudited) Twelve Months Ended September 28, 2024 September 30, 2023 Cash Provided by Operating Activities $ 2,590 $ 1,752 Additions to property, plant and equipment (1,132) (1,939) Free cash flow $ 1,458 $ (187) TYSON FOODS, INC. November 12, 20