Tyson Foods sees improved performance in chicken segment as 2024 fiscal year concludes

USA – Tyson Foods reported a marked improvement in financial outcomes for its chicken business as it wrapped up the 2024 fiscal year, with results from the fourth quarter and full-year figures showing a significant recovery in this segment. 

The fiscal year and fourth-quarter results were both finalized on September 28, with the company publicly disclosing them on November 12.

For the quarter, Tyson’s chicken segment recorded an adjusted operating income (AOI) of US$356 million, a stark contrast to US$75 million from the same period last year. 

Full-year performance saw an even greater turnaround, with the segment achieving US$1.015 billion in AOI compared to a loss of US$77 million in the previous fiscal year. 

This rebound follows several years of challenges for Tyson’s chicken operations, which have struggled with consistent profitability.

Tyson Foods CEO Donnie King attributed the positive results to a combination of operational improvements and favorable market conditions. 

Speaking to analysts during an earnings call, King noted that a decrease in grain prices positively impacted the segment’s margins, while key adjustments in live operations and improved hatch and livability rates contributed significantly to efficiency. 

The company’s poultry operations faced additional obstacles this year, including a fire at a Netherlands-based poultry plant during the first quarter, which led to the subsequent decision to sell the facility. 

Despite these disruptions, Tyson Foods maintained its focus on enhancing operational resilience, a factor that has helped strengthen its financial position in the chicken segment.

Looking ahead, King described Tyson’s chicken business as more “stable and predictable” moving forward, citing the importance of ongoing relationships with key customers in supporting demand.

Chief Financial Officer Curt Calaway echoed this sentiment, stating that Tyson intends to build on the operational improvements established during fiscal 2024 to support future performance.

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