Tyson Foods, Inc. · NYSE:TSN
Tyson Foods — Q4 2023 Earnings Presentation
23 slides from Tyson Foods's earnings presentation, Nov 13, 2023
Slide 1: Q4 Fiscal 2023 Supplemental Information
— Q4 Fiscal 2023 Supplemental Information November 13, 2023
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: 4Q23 Key Messages
4Q23 Key Messages 1 Continued sequential earnings improvement in Q4, led by Chicken 2 Seeing tangible benefits of our actions to wrap up challenging FY23 3 Focused on what we can control – including capital spend 4 Focused on driving long-term value for shareholders TYSON FOODS, INC. NOVEMBER 13, 20
Slide 4: Share growth in both Focus 6 Foodservice and Retail Core Business Lines
Share growth in both Focus 6 Foodservice and Retail Core Business Lines Tyson Pound Share Pound Share and YoY Chg Brand Strength Relative to Competition Focus 6 Retail Core % Favorite Brand Among Category Buyers Foodservice Business Lines Frozen Nuggets 44% Q4 Q4 Q4 Q4 9% 2022 2023 2022 2023 Frozen
Slide 5: Segment Highlights
Segment Highlights Prepared Foods Chicken • Brands share continued to perform well • 2nd consecutive quarter of $100M+ sequential • Solid year with strong AOI1 growth AOI1 improvement • Ongoing operational improvements and lower grain costs drove solid 4Q23 results Beef Pork • Rising cattle costs, l
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 Fourth Quarter and FY23 vs Comparable Prior Year Periods SALES ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 (in millions of dollars) (in millions of dollars) (in dollars per share) $823 -$16 -$192 $1.63 $13,737 $13,348 -$308 -$71 $236 $0.37 $0.15 4Q22 4Q23 Q4 2022 AOI Net
Slide 8: Retail Brands continue to drive strong performance in Prepared Foods
Retail Brands continue to drive strong performance in Prepared Foods Fourth Quarter and FY23 vs Comparable Prior Year Periods SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) o 4Q23 volume increased due to growth in retail reflecting strength of brands $9
Slide 9: Improving trajectory in Chicken
Improving trajectory in Chicken Fourth Quarter and FY23 vs Comparable Prior Year Periods SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) $16,961 $17,060 o 4Q23 modest sales volume increase driven by sell- $926 through of finished goods inventory o 4Q23 a
Slide 10: Beef industry fundamentals remain challenging
Beef industry fundamentals remain challenging Fourth Quarter and FY23 vs Comparable Prior Year Periods SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) o 4Q23 sales increased due to higher pricing partially offset by lower volume $19,854 $19,325 $2,491 o
Slide 11: Improving spreads in Pork
Improving spreads in Pork Fourth Quarter and FY23 vs Comparable Prior Year Periods SALES ADJUSTED OPERATING INCOME1 HIGHLIGHTS (in millions of dollars) (in millions of dollars) $6,414 $198 o 4Q23 sales decreased primarily due to lower $5,768 pricing o 4Q23 operating income increased as spreads and o
Slide 12: Prudent capital allocation in a challenging market
Prudent capital allocation in a challenging market OPERATING CASH FLOW Leverage Ratio (in billions of dollars) BUILD 4.1x (Net Debt/Adj. EBITDA)1 $2.69 FINANCIAL <2.0x STRENGTH Manage our leverage ratio to be at or below our long-term target FY23 Long-term Target $1.75 Capital Expenditures (in billi
Slide 13: Fiscal 2024 Guidance
Fiscal 2024 Guidance TOTAL COMPANY SEGMENTS AOI Prepared Foods Chicken ~Flat $1.0B-1.5B YoY Sales Total AOI $400-700M $800M-1B Positive $1.0B-1.5B Free Cash Flow Capital Expenditures Beef Pork ~23% ~$400M $(400)-0M ~Breakeven Tax Rate Net Interest Expense TYSON FOODS, INC. NOVEMBER 13, 2023 13
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 Quarterly YoY
Segment Sales Channel Bridge Quarterly YoY Fourth Quarter 2023 $ millions Channel Highlights $13,737 -$14 • Retail increased $69M with -$464 increases in Beef of $240M and Prepared Foods of $21, offset by decreases in Pork of $34M and Chicken of $158M • Foodservice increased $17M with an increase in
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 and net debt to Adjusted EBITDA are presente
Slide 18: EPS By FSLI Reconciliation
EPS By FSLI Reconciliation $ in millions, except per share data (Unaudited) GAAP Results $ (463) $ (556) $ (113) $ (450) $ (1.31) 6 Production facilities fire costs, net of insurance proceeds - 4 - - 4 - 4 1 3 0.01 Restructuring and related charges - 6 25 - 31 - 31 8 23 0.06 Plant closures - 215 - -
Slide 19: EPS By FSLI Reconciliation
EPS By FSLI Reconciliation $ in millions, except per share data (Unaudited) Results for the twelve months ended September 30, 2023 Net Income Cost Selling, Operating Other Income (Loss) Income Tax Goodwill (Loss) EPS Sales of General and Income (Income) before Income Expense Impairment Attributable
Slide 20: EBITDA Reconciliations
EBITDA Reconciliations $ in millions, except per share data (Unaudited) Twelve Months Ended September 30,2023 October 1, 2022 Net income (loss) $ (649) $ 3,249 Less: Interest income (30) (17) Add: Interest expense 355 365 Add/(Less): Income tax expense (benefit) (29) 900 Add: Depreciation 1,100 945
Slide 21: Chicken Segment Sequential Operating Income (Loss) Reconciliation
Chicken Segment Sequential Operating Income (Loss) Reconciliation $ in millions (Unaudited) Three Months Ended September 30, 2023 July 1, 2023 Change Reported operating income (loss) $ (267) $ (314) $ 47 GAAP ROS % -6.4% (7.5)% 1.1% Add: Production facilities fire insurance proceeds, net of costs 5
Slide 22: Segment Operating Income Reconciliations
Segment Operating Income Reconciliations $ in millions (Unaudited) Adjusted Segment Operating Income (Loss) (for the fourth quarter ended September 30, 2023) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ (323) $ (11) $ (267) $ 118 $ 20 $ (463) Add: Pr
Slide 23: Segment Operating Income Reconciliations
Segment Operating Income Reconciliations $ in millions (Unaudited) Adjusted Segment Operating Income (Loss) (for the twelve months ended September 30, 2023) International/ Beef Pork Chicken Prepared Foods Total Other Reported operating income (loss) $ (91) $ (139) $ (770) $ 823 $ (218) $ (395) Add: