Tyson Foods Posts Q1 Earnings: Protein Conscious Customers Drive Demand, CEO Calls It Best Quarter In 2 Years

Shares of Tyson Foods Inc TSN are trading higher after the first-quarter FY25 earnings result.

The company reported first-quarter FY25 sales growth of 2.3% year-on-year to $13.62 billion, beating the analyst consensus estimate of $13.44 billion.

Sales volume of Beef increased 5.6% Y/Y, Pork declined 0.4%, Chicken climbed 1.5%, and Prepared Foods dropped 3.2%.

Gross profit surged 33% to $1.09 billion from $823 million prior year, with the margin expanding 180 basis points to 8%. The company’s operating income jumped 151% to $580 million, with an operating margin of 4.3%.

Adjusted EBITDA for the quarter increased 29.2% to $961 million. Adjusted EPS of $1.14 beat the consensus estimate of $0.88.

The company held $2.29 billion in cash and equivalents as of December 28, 2024.

“Our best quarterly performance in more than two years reflects improved execution across the business, including exceptional results in chicken,” said president and CEO Donnie King.

“Consumers remain focused on adding protein to their diets, and our diversified multi-channel, multi-protein portfolio ensures we are well-positioned to meet this demand while reinforcing our leadership as a world-class food company.”

Outlook: Tyson Foods raised its FY25 revenue outlook to flat to up 1% from the prior guidance of down 1% to flat.

The company anticipates total company adjusted operating income of $1.9 billion to $2.3 billion for fiscal 2025, up from the prior outlook of $1.8 billion to $2.2 billion.

The company sees capital expenditures of $1.0 billion – $1.2 billion in FY25. Free cash flow is expected to be $1.0 billion – $1.6 billion.

Price Action: TSN shares are trading higher by 4.09% at $58.80 in premarket at the last check Monday.

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