USA – Tyson Foods, a renowned meat industry player, reported better-than-expected results for the third quarter, signaling a resurgence in demand for its meat products. 

According to Reuters, the company benefited from lower grain prices, which reduced the cost of animal feed.

Following a decline in sales in 2023, Tyson Foods is now witnessing a return of customers to grocery stores. 

The increasing costs of dining out are driving more people to prepare meals at home, boosting Tyson’s sales.

In the third quarter, Tyson Foods’ net sales increased by 1.6% to US$13.35 billion, surpassing analysts’ predictions of $13.24 billion. 

The company maintains its forecast that full-year revenue will remain flat compared to fiscal 2023.

The company’s largest segment, beef, saw volumes rise by 4.4%, building on the previous quarter’s 2.8% growth driven by higher average carcass weights. 

Prices in this segment also increased by 1.4%, despite the ongoing challenge of limited cattle supply.

Conversely, Tyson’s chicken segment, which faced an oversupply issue in 2023, experienced a 3.2% decline in sales for the quarter, with prices dropping by 3.7%. 

Tyson had previously adjusted production to better match consumer demand.

The pork segment reported a 10.4% increase in quarterly sales, though volumes grew by only 1.2%, a sequential drop from the 2.9% growth seen in the second quarter due to higher hog supplies.

In an effort to improve profit margins, Tyson Foods has implemented a rigorous cost-control strategy. 

The company has sold off a poultry facility, closed six US chicken plants, announced the closure of a pork plant, and cut jobs.

Lower grain and raw material costs contributed to Tyson Foods posting adjusted earnings of 87 cents per share, exceeding analysts’ estimates of 65 cents per share.

Tyson Foods, Inc., headquartered in Springdale, Arkansas, is a major player in the food industry, especially the meat industry. 

As the world’s second-largest processor and marketer of chicken, beef, and pork after JBS S.A., Tyson Foods exports the largest percentage of beef from the United States annually.

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