Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q1 2018 Earnings Presentation
19 slides from Tyson Foods's earnings presentation, Feb 8, 2018
Slide 1: Supplemental Information 1st Quarter Fiscal 2018
Supplemental Information 1st Quarter Fiscal 2018 February 8, 2018
Slide 2: Presenters
Dennis Leatherby Tom Hayes Stewart Glendinning 2 Tyson Foods, Inc. | February 8, 2018
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this presentation may constitute forward-looking statements, such as statements relating to expected performance and including, but not limited to, statements appearing in the “Outlook” section and statements relating to adjusted EPS guidan
Slide 4: Q1'18 Highlights
Q1’18 Highlights ($ in millions, except per share Highlights data) Q1’18 • Record Adjusted EPS1,2 of $1.81, up Sales $10,229 14% from last year Adjusted Operating Income1 $950 Adjusted Operating Margin1 9.3% • Total volume growth of 5% with Adjusted EPS* $1.81 value-added volume growth of 9% • Recor
Slide 5: Segment Results – Beef
Segment Results – Beef Q1’18 Adjusted Q1’18 Sales Volume up FY18 Outlook: Operating Income1 4.5% and Revenue Adjusted Operating ($ in millions) increased by 10% Margin1 ~6% Dollars ROS% $257 6.6% 1Represents a non-GAAP financial measure. Q1’18 Adjusted operating income and adjusted operating margin
Slide 6: Segment Results – Pork
Segment Results – Pork Q1’18 Adjusted Q1’18 Sales Volume FY 18 Outlook: Operating Income1 down 2.6% and Revenue Adjusted Operating ($ in millions) increased by 2.5% Margin1 ~9% Dollars ROS% $152 11.8% 1Represents a non-GAAP financial measure. Q1’18 Adjusted operating income and adjusted operating ma
Slide 7: Segment Results – Chicken
Segment Results – Chicken Q1’18 Adjusted Q1’18 Sales Volume up FY 18 Outlook: Operating Income1 7.3% and Revenue Adjusted Operating ($ in millions) increased by nearly 11% Margin1 ~11% Dollars ROS% $281 9.4% 1Represents a non-GAAP financial measure. Q1’18 Adjusted operating income and adjusted opera
Slide 8: Segment Results – Prepared Foods
Segment Results – Prepared Foods Q1’18 Record Adjusted Q1’18 Sales volume up FY 18 Outlook: Operating Income1 11.6% and Revenue Adjusted Operating ($ in millions) increased by 21% Margin1 ~11% Dollars ROS% $273 11.9% 1Represents a non-GAAP financial measure. Q1’18 Adjusted operating income and adjus
Slide 9: Core 9 and Total Tyson Leading in Dollar Performance
Core 9 and Total Tyson Leading in Dollar Performance Dollar sales % change among top 10 branded food companies >$5B 3.6% 3.6% 2.7% 1.2% 0.2% Total Core 9 Total F&B -0.9% -1.2% -1.4% -1.8% -2.4% -3.7% -4.0% Source: IRI Total U.S. Multi-Outlet (x Costco), Dollar Sales, 52 weeks ending 12/31/2017 Inclu
Slide 10: Core 9 and Total Tyson Leading in Volume Performance
Core 9 and Total Tyson Leading in Volume Performance Volume sales % change among top 10 branded food companies >$5B 2.2% 1.5% Total 0.7% F&B Core 9 Total -1.1% -3.4% -3.7% -3.8% -4.5% -5.5% -5.8% -5.9% -11.2% Source: IRI Total U.S. Multi-Outlet (x Costco), Volume Sales, 52 weeks ending 12/31/2017 In
Slide 11: Foodservice Broadline Volume Performance
Foodservice Broadline Volume Performance Volume % Change vs. Prior Year (52 wks ending November 2017) 8.0% 3.6% +1.1 pt = 2.4% 1.7% Total Broadline Total Tracked Tyson in Tracked Tyson Focus 6 Tyson Focus 6 Share Categories Growth NPD SupplyTrack ® data, 52 weeks ending November 2017 Excludes Large
Slide 12: Focus 6 Growing in Volume Performance
Focus 6 Growing in Volume Performance Volume sales % change among category competitors and the channel 8.0% 6.2% 4.2% 3.0% 1.7% 1.7% 0.0% -2.2% Distr. Total Brand Broadline Focus 6 -13.8% NPD SupplyTrack ® data, 52 weeks ending November 2017 Excludes Large Chain and Operator Label data Focus Six= Ch
Slide 13: Grow. Deliver. Sustain.
Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generations
Slide 14: Q1'18 Highlights
Q1’18 Highlights ($ in millions, except per share Highlights data) Q1’18 • Record Adjusted EPS1,2 of $1.81, up Sales $10,229 14% from last year Adjusted Operating Income1 $950 Adjusted Operating Margin1 9.3% • Total volume growth of 5% with Adjusted EPS* $1.81 value-added volume growth of 9% • Recor
Slide 15: FY18 Outlook
FY18 Outlook 1 Sales of CapEx Adjusted EPS ~$1.4-1.5 billion Adjusted2,3EPS ~$41 billion $6.55-6.70 Topline growth of 6-7% over Includes $100M incremental •$5.70-5.85 ** ~23-26% growth over FY17 FY17 as we grow volume and investment due to tax reform •~7-10% growth over FY17 have full year benefit o
Slide 16: Grow. Deliver. Sustain.
Grow. Deliver. Sustain. — — — Our businesses Ongoing financial Our company through fitness through and our differentiated continuous world for future capabilities improvement generations
Slide 17: Appendix: Non-GAAP Reconciliations
Appendix 1st Quarter Fiscal 2018 Non-GAAP Reconciliations
Slide 18: EPS Reconciliations
EPS Reconciliations In millions, except per share data (Unaudited) First Quarter Pretax Impact EPS Impact 2018 2017 2017 2016 Reported net income per share attributable to Tyson $ 4.40 $ 1.59 Add: Restructuring and related charges $ 19 $ - 0.04 - Add: Impairment net of a realized gain associated wit
Slide 19: Segment Operating Income and Operating Margin Reconciliations
Segment Operating Income and Operating Margin Reconciliations In millions (Unaudited) Adjusted Segment Operating Income (Loss) (for the first quarter ended December 30, 2017) Beef Pork Chicken Prepared Foods Other Intersegment Sales Total Sales $ 3,886 $ 1,283 $ 2,997 $ 2,292 $ 88 $ (317) $ 10,229 R