Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q1 2019 Earnings Presentation
24 slides from Tyson Foods's earnings presentation, Feb 7, 2019
Slide 1: Q1 FY2019 Supplemental Information
— Q1 FY2019 Supplemental Information February 7, 2019 Tyson Foods, Inc.
Slide 2: Today's Speakers
Today’s Speakers Noel White Stewart Glendinning President & CEO EVP & CFO
Slide 3: Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2019, other future economic circumstances, industry conditions in domestic and international markets, our
Slide 4: Q1'19 Highlights
Q1’19 Highlights ($ in millions, except per share data) Sales $10,193 • Adjusted EPS of $1.58 1 Adjusted Operating Income1 $841 Adjusted Operating Margin1 8.3% • Adjusted operating income of $841M 1 Adjusted EPS1 $1.58 • Adjusted operating margin of 8.3% 1 Adjusted Operating Income & Margin1 • Recor
Slide 5: Most Admired in Food Production
Most Admired in Food Production 1. Innovation 2. People Management 3. Use of Corporate Assets 4. Social Responsibility 5. Quality of Management 6. Financial Soundness 7. Long-term Investment 8. Quality of Products & Services 9. Global Competitiveness 5 Tyson Foods, Inc. February 7, 2019
Slide 6: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Grow Deliver Sustain our businesses ongoing financial fitness our company and through differentiated through continuous our world for future capabilities. improvement. generations.
Slide 7: Prepared Foods Segment Results
Prepared Foods Segment Results Q1’19 Adjusted Q1’19 Operating Income & Margin1 2 Sales volume ↑0.4% (ex-divestitures) 2 ($ in millions) Average price ↑1.5% (ex-divestitures) Dollars ROS FY19 Outlook 1 Adjusted Operating Margin $268 12.5% 11-12% 1Represents a non-GAAP financial measure. Adjusted oper
Slide 8: Prepared Foods Growth
Prepared Foods Growth 1 1 1 1 1Represents a non-GAAP financial measure. Adjusted Sales and adjusted operating income are explained and reconciled to comparable GAAP measures in the Appendix. A further explanation of providing non-GAAP guidance is included in the appendix. 8 Tyson Foods, Inc. Februar
Slide 9: Jimmy Dean
Jimmy Dean® Frozen Protein Breakfast Sales Volume Up 7% Sales Dollars Up 7.9% Source: Nielsen Total US + AOC, 52 weeks ending January 19, 2019 9 Tyson Foods, Inc. February 7, 2019
Slide 10: Beef Segment Results
Beef Segment Results Q1’19 Adjusted Q1’19 Operating Income & Margin1 Sales volume ↓0.9% ($ in millions) Average price ↑1.9% Dollars ROS FY19 Outlook 1 Adjusted Operating Margin $305 7.8% near 7% 1Represents a non-GAAP financial measure. Adjusted operating income and adjusted operating margin are exp
Slide 11: US Annual Beef Exports
US Annual Beef Exports Million Pounds, Carcass Weight 3,500 40% Exports Exports % of Production 3,000 35% 30% 2,500 25% 2,000 20% 1,500 15% 1,000 10% 500 5% - 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Robert A. Brown, Inc., USDA-ERS 2018 is preliminary 11
Slide 12: Pork Segment Results
Pork Segment Results Q1’19 Adjusted Q1’19 Operating Income & Margin1 Sales volume ↓3.6% ($ in millions) Average price ↓4.6% Dollars ROS FY19 Outlook 1 Adjusted Operating Margin $95 8.1% around 6% 1Represents a non-GAAP financial measure. Adjusted operating income and adjusted operating margin are ex
Slide 13: US Annual Pork Exports
US Annual Pork Exports Million Pounds, Carcass Weight 7,000 50% Exports Exports % of Production 45% 6,000 40% 5,000 35% 30% 4,000 25% 3,000 20% 2,000 15% 10% 1,000 5% - 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Robert A. Brown, Inc., USDA-ERS 2018 is preli
Slide 14: Chicken Segment Results
Chicken Segment Results Q1’19 Adjusted Q1’19 Operating Income & Margin1 Sales volume ↑17.0% ($ in millions) Average price ↓13.1% Dollars ROS FY19 Outlook 1 Adjusted Operating Margin $173 5.6% exceed 6% 1Represents a non-GAAP financial measure. Adjusted operating income and adjusted operating margin
Slide 15: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Grow Deliver Sustain our businesses ongoing financial fitness our company and through differentiated through continuous our world for future capabilities. improvement. generations.
Slide 16: Q1'19 Highlights
Q1’19 Highlights ($ in millions, except per share data) Sales $10,193 • Adjusted EPS of $1.58 1 Adjusted Operating Income1 $841 Adjusted Operating Margin1 8.3% • Adjusted operating income of $841M 1 Adjusted EPS1 $1.58 • Adjusted operating margin of 8.3% 1 Adjusted Operating Income & Margin1 • Recor
Slide 17: FY19 Outlook
FY19 Outlook SALES CAP EX ADJUSTED EPS1 ~$43B ~$1.5B $5.75-6.10 ADJUSTED OPERATING MARGIN1 PREPARED FOODS BEEF PORK CHICKEN 11-12% near 7% around 6% exceed 6% 1 Projected Adjusted EPS as of 2/7/19. Represents a non-GAAP financial measure. Adjusted EPS and adjusted operating margin are explained and
Slide 18: Our Strategy
Our Strategy — Sustainably feed the world with the fastest growing protein brands. How We Will Achieve Our Strategy Grow Deliver Sustain our businesses ongoing financial fitness our company and through differentiated through continuous our world for future capabilities. improvement. generations.
Slide 19: Appendix
Appendix Tyson Foods, Inc.
Slide 20: Volume Performance Core and Total Tyson
Volume Performance Core 9 and Total Tyson Volume Sales % Change Among Top 10 Branded Food Companies >$5B 1.7% 1.5% 1.0% 0.4% 0.1% TOTAL CORE 9 TOTAL -0.2% F&B -0.3% -0.5% -0.8% -1.1% -1.1% -1.1% Source: Nielsen Total U.S. x AOC Volume EQ Sales 52 weeks ending 12/29/2018 Product = Total F&P, Alcohol
Slide 21: Foodservice Broadline Volume Performance
Foodservice Broadline Volume Performance Volume % Change vs. Prior Year (52 weeks ending November 2018) 3.1% 2.4% 1.3% Total Broadline Focus 6 Categories Tyson Focus 6 Source: NPD SupplyTrack®, Month Ending November 2018. Excludes Large Chain and Operator Label Focus Six= Chicken Value Added, Breakf
Slide 22: EPS Reconciliations
EPS Reconciliations In millions, except per share data First Quarter (Unaudited) Pretax Impact EPS Impact 2019 2018 2019 2018 Reported net income per share attributable to Tyson $ 1.50 $ 4.40 Add: Restructuring and related charges 8 19 0.02 0.04 Add: Impairment net of a realized gain associated with
Slide 23: Segment Operating Income & Operating Margin Reconciliations
Segment Operating Income & Operating Margin Reconciliations In millions, except per share data (Unaudited) Adjusted Segment Operating Income (Loss) (for the first quarter ended December 29, 2018) Prepared Intersegment Beef Pork Chicken Foods Other Sales Total Sales $ 3,926 $ 1,179 $ 3,115 $ 2,149 $
Slide 24: Historical Prepared Foods Sales, Operating Income & Margin Reconciliations
Historical Prepared Foods Sales, Operating Income (Loss) & Operating Margin Reconciliations P repared Foods Adjusted Sales and Operating Income (Loss) In millions, except Fiscal Year per share data 2018 2017 2016 2015 2014 (Unaudited) Reported Sales $ 8,668 $ 7,853 $ 7,346 $ 7,822 $ 3,927 Less: Esti