US – Tyson Foods, Inc., one of the world’s largest food companies and a recognized leader in protein with leading brands, has reported its record quarter results with 11% total company sales growth.
The Adjusted operating income and adjusted net income per share attributable to Tyson, or Adjusted EPS, are non-GAAP financial measures and are also explained and reconciled to a comparable GAAP measure.
According to the company, its record GAAP EPS of US$4.40, was up 177% from last year which had a record Adjusted EPS of US$1.81.
Total company GAAP operating margin was at 9.1%, while Adjusted operating margin at 9.3%
The company had reduced debt over US$500 million and realized US$37 million of Financial Fitness Program cost savings.
“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.
“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.”
The company also had lower enacted tax rates positively impacting the first quarter Adjusted EPS by US$0.21 expects a fiscal 2018 benefit of approximately US$0.85 on an adjusted basis
It also expects the adjusted effective tax rate to be approximately 24% in fiscal 2018 and 25% in fiscal 2019.
Additionally, incremental tax reform cash flow in fiscal 2018 is expected to exceed US$300 million, which the company intends to invest in their frontline team members and to sustainably grow our businesses
“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.”