Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q3 2024 Earnings Presentation
23 slides from Tyson Foods's earnings presentation, Aug 5, 2024
Slide 1: Q3 Fiscal 2024 Supplemental Information
Q3 Fiscal 2024 Supplemental Information August 5, 2024
Slide 2: Forward-Looking Statements and Non-GAAP
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 2024, other future economic
Slide 3: 3Q24 Key Messages
3Q24 Key Messages 1 Solid performance in Q3 – momentum in FY24 continues 2 Controllables in focus – Strong results in Chicken 3 Improving financial health 4 Market leading brands with favorite-brand status 3
Slide 4: Segment Highlights
Segment Highlights PREPARED FOODS CHICKEN • Q3 AOI1 performance in line with expectations • Best Q3 AOI1 performance since FY16 • Continued volume growth in food service • Market tailwinds and operational channel improvements driving results BEEF PORK • Spread compression driven by continued tight •
Slide 5: Setting the Table: Mission, Purpose and Strategic Pillars
Setting the Table: OUR MISSION To bring high-quality food to every table in the world, safely, sustainably, affordably, now and for future generations OUR PURPOSE We feed the world like family.” OUR STRATEGIC PILLARS Fortify Foundation Build Brands Grow Globally Deliver margins in core protein busin
Slide 6: Fiscal 2024 Priorities – Controlling the Controllables
Fiscal 2024 Priorities – Controlling the Controllables 1 Focus on capex & working capital to drive cash flow & support dividend 2 Optimize manufacturing footprint & network design 3 Continue improvements in Chicken; sustain strength in Prepared Foods 4 Manage Beef through cattle cycle; drive efficie
Slide 7: Sales, AOI and EPS Performance
Sales, AOI and EPS Performance Third 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) $0.87 $13,140 $13,353 $15 -$17 $92 -$148 $370 $491 $179 $0.15 3Q23 3Q24 3Q23 Chicken Pork Int'l/Ot
Slide 8: Solid Performance in Prepared Foods
Solid Performance in Prepared Foods Third 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 Food Service $2,432 o Operating income declined YoY driven by higher raw material and startup
Slide 9: Strategic actions, improving macro driving stronger results in Chicken
Strategic actions, improving macro driving stronger results in Chicken Third Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1,2 HIGHLIGHTS (in millions of dollars) (in millions of dollars) $4,212 o Sales declined primarily due to pass-through $4,076 $307 impact of lower
Slide 10: Beef industry fundamentals remain challenging
Beef industry fundamentals remain challenging Third Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) o Sales increased driven by higher price per pound $5,241 and higher average carcass weights $79 o Operating
Slide 11: Improving spreads in Pork
Improving spreads in Pork Third Quarter FY24 vs Comparable Prior Year Period SALES ADJUSTED OPERATING INCOME1,2 HIGHLIGHTS (in millions of dollars) (in millions of dollars) o Sales increased driven by healthy global demand $22 o Operating income increased as spreads and operational execution improve
Slide 12: Strong cash generation and improving financial health
Strong cash generation and improving financial health Leverage Ratio OPERATING CASH FLOW (Net Debt/Adj. EBITDA)1 (in millions of dollars) BUILD FINANCIAL 4.1x 3.9x 3.6x 3.0x STRENGTH $1,973 Manage our leverage ratio to be at or below our long-term target Q4'23 Q1'24 Q2'24 Q3'24 Capital Expenditures
Slide 13: FY24 Revised Guidance
FY24 Revised Guidance FY2024 Guidance2 Prior Indication Revised Indication Sales ~Flat Unchanged Prepared Foods AOI1 $850M - $950M Unchanged Chicken AOI1 $700-900M $850-950M Beef AOI1 $(400)-(100)M $(400)-(300)M Pork AOI1 $50-150M $100-200M Total AOI1 $1.4B - 1.8B $1.6B – 1.8B Capital Expenditures $
Slide 14: Q&A
Q&A Donnie King Curt Calaway Brady Stewart Melanie Boulden Wes Morris Devin Cole President & CEO interim CFO Group President, Group President, Group President, President, International Beef, Pork and Chief Prepared Foods and Poultry & Global McDonald’s Supply Chain Officer Chief Growth Officer
Slide 15: Appendix
Appendix
Slide 16: AOI Bridge by P&L Items
AOI Bridge by P&L Items Third Quarter FY24 vs Comparable Prior Year Period $ millions $11 $491 $214 $78 $179 $9 1 Q3 2023 AOI Net Volume Impact 2 Sales Price/Mix 3 COGS Price/Mix4 SG&A 5 Q3 2024 AOI 1 1 Represents a non-GAAP financial measure. Non-GAAP financial measures are explained and reconciled
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 and Adjusted EPS, EBITDA, Adjusted EBITDA, net debt to EBITDA, net leverage ratio or net debt to Adjusted
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 third quarter ended June 29, 2024 Selling, General Operating Other Income (Loss) Income Tax Cost of Goodwill Net Income (Loss) EPS Sales and Income (Income) before Income Expense Sales I
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 third quarter ended June 29, 2024) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ (69) $ (62) $ 244 $ 203 $ 25 $ 341 A
Slide 20: 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 21: 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 22: 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 23: Free Cash Flow Non-GAAP Reconciliation
Free Cash Flow Non-GAAP Reconciliation $ in millions (Unaudited) Nine Months Ended June 29, 2024 July 1, 2023 July 2, 2022 Cash Provided by Operating Activities $ 1,973 $ 1,429 $ 1,890 Additions to property, plant and equipment (884) (1,564) (1,323) Free cash flow $ 1,089 $ (135) $ 567 TYSON FOODS,