US – Tyson Foods, one of the world’s largest food companies and a recognized leader in protein, has reported its first quarter results, recording 11% growth in total company sales.
According to the company, its total company GAAP operating margin at 9.1% was adjusted to an operating margin at 9.3%.
The record GAAP EPS of US$4.40, was up 177% from last year, with the record adjusted EPS of US$1.81, up 14% from last year.
The GAAP operating income of US$927 million was adjusted to operating income of US$950 million and reduced debt of over US$500million.
The company also realised US$ 37million of Financial Fitness Program cost savings.
The adjusted operating income and adjusted net income per share attributable to Tyson, or Adjusted EPS, are non-GAAP financial measures were also explained and reconciled to a comparable GAAP measure.
“At Tyson Foods, we’re creating a modern food company focused on protein,” said Tom Hayes, Tyson Foods president and chief executive officer.
“Building on our momentum from a record year in fiscal ’17, we’re off to a strong start in fiscal ’18.
We delivered record adjusted EPS and our second-strongest quarter of operating income in Q1, with operating cash flows of more than US$1.1 billion.”
Lower enacted tax rates positively impacted the first quarter adjusted EPS by US$0.21 and the company expects a fiscal 2018 benefit of approximately US$0.85 on an adjusted basis.
The adjusted effective tax rate is also expected to be approximately 24% in fiscal 2018 and 25% in fiscal 2019
Incremental tax reform cash flow in fiscal 2018 expected to exceed US$300 million, which it intends to invest in the frontline team members and to sustainably grow their businesses.
“The strength and diversity of our portfolio are evident.
We drove solid results in each of our segments – beef, pork, chicken and prepared foods.
We grew topline sales, with our retail and food service sales both outpacing the industry.
We’re encouraged by the position we’re in today,” he added.
“As we look to the long-term, we’re confident in our ability to continue growing the business.
Demand for protein continues to rise, and we’re well-positioned to take advantage of that opportunity – and to fulfill our aspiration of sustainably feeding the world.”