Tyson Foods beats quarterly profit estimates on strong chicken demand

[NEW YORK] Tyson Foods beat Wall Street expectations for second-quarter profit on Monday (May 5), driven by increased demand for its chicken products and lower costs.

The company witnessed sustained demand for its frozen meat and ready-to-eat food as consumers increasingly preferred eating at home.

Robust growth in Tyson’s chicken segment at its restaurant and food service channels helped the company offset stubbornly high beef prices due to low US cattle supplies.

On an adjusted basis, it earned 92 US cents per share for the quarter ended March 29, compared with analysts’ estimate of 82 US cents, according to data compiled by LSEG.

Quarterly net sales of US$13.07 billion missed analysts’ estimate of US$13.14 billion.

Legal contingency accruals reduced sales by US$343 million in the quarter, Tyson said.

Sales in its beef segment, the company’s largest, were up 4.9 per cent in the quarter. Prices were up 8.2 per cent, while volumes declined 1.4 per cent.

Adjusted operating margin at its chicken segment rose to 7.5 per cent from 3.9 per cent in the year-ago quarter, while its pork business rose to 3.7 per cent from 2.2 per cent a year ago. REUTERS