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Tyson Foods(TSN) - 2024 Q4 - Annual Results
TSNTyson Foods(TSN)2024-11-12 12:32

Financial Performance - Sales for fiscal 2024 reached 53,309million,up0.853,309 million, up 0.8% from the prior year[3] - Adjusted operating income for fiscal 2024 was 1,820 million, a 95% increase from the prior year[3] - Adjusted EPS for fiscal 2024 was 3.10,up1313.10, up 131% from the prior year[3] - Fourth quarter sales were 13,565 million, up 1.6% from the prior year[4] - Fourth quarter adjusted operating income was 512million,up117512 million, up 117% from the prior year[4] - Sales for the twelve months ended September 28, 2024, increased to 53,309 million, up 0.8% from 52,881millioninthepreviousyear[13]−GrossprofitforthetwelvemonthsendedSeptember28,2024,was52,881 million in the previous year[13] - Gross profit for the twelve months ended September 28, 2024, was 3,627 million, representing a gross margin of 6.8%, compared to 2,631millionand5.02,631 million and 5.0% in the previous year[13] - Net income attributable to Tyson for the twelve months ended September 28, 2024, was 800 million, compared to a net loss of 648millioninthepreviousyear[13]−AdjustedoperatingincomeforthetwelvemonthsendedSeptember28,2024,was648 million in the previous year[13] - Adjusted operating income for the twelve months ended September 28, 2024, was 1,820 million, up from the reported operating income of 1,409million[29]−NetincomeforthetwelvemonthsendedSeptember28,2024,was1,409 million[29] - Net income for the twelve months ended September 28, 2024, was 822 million, compared to a net loss of 649millionforthesameperiodin2023[34]−AdjustedEBITDAforthetwelvemonthsendedSeptember28,2024,was649 million for the same period in 2023[34] - Adjusted EBITDA for the twelve months ended September 28, 2024, was 3,120 million, up from 2,149millionin2023[34]SegmentPerformance−Beefsegmentsalesforthefourthquarterwere2,149 million in 2023[34] Segment Performance - Beef segment sales for the fourth quarter were 5,261 million, up 3.7% in volume and 0.9% in price from the prior year[5] - Chicken segment adjusted operating income for the fourth quarter was 356million,upfrom356 million, up from 75 million in the prior year[7] Cash Flow and Capital Expenditures - Cash and cash equivalents increased significantly to 1,717millionasofSeptember28,2024,from1,717 million as of September 28, 2024, from 573 million in the previous year[15] - Cash provided by operating activities for the twelve months ended September 28, 2024, was 2,590million,comparedto2,590 million, compared to 1,752 million in the previous year[19] - Additions to property, plant, and equipment for the twelve months ended September 28, 2024, were 1,132million,downfrom1,132 million, down from 1,939 million in the previous year[18] - Free cash flow, defined as cash provided by operating activities minus payments for property, plant, and equipment, was 1,458millionforthetwelvemonthsendedSeptember28,2024[19][18]−FreecashflowforthetwelvemonthsendedSeptember28,2024,was1,458 million for the twelve months ended September 28, 2024[19][18] - Free cash flow for the twelve months ended September 28, 2024, was 1,458 million, a significant improvement from a negative 187millionin2023[35]DebtandFinancialRatios−Long−termdebtincreasedto187 million in 2023[35] Debt and Financial Ratios - Long-term debt increased to 9,713 million as of September 28, 2024, from 7,611millioninthepreviousyear[16]−GrossdebttoEBITDAratioimprovedto3.4xin2024from9.7xin2023[34]−NetdebttoEBITDAratioimprovedto2.8xin2024from9.1xin2023[34]Non−GAAPandAdjustedMetrics−Adjustednon−GAAPnetincomeattributabletoTysonforthetwelvemonthsendedSeptember28,2024,was7,611 million in the previous year[16] - Gross debt to EBITDA ratio improved to 3.4x in 2024 from 9.7x in 2023[34] - Net debt to EBITDA ratio improved to 2.8x in 2024 from 9.1x in 2023[34] Non-GAAP and Adjusted Metrics - Adjusted non-GAAP net income attributable to Tyson for the twelve months ended September 28, 2024, was 329 million, with an adjusted EPS of 0.92[25]−TysonFoodsreportedaGAAPnetlossof0.92[25] - Tyson Foods reported a GAAP net loss of 450 million for the fourth quarter ended September 30, 2023, with an EPS impact of (1.31)[26]−AdjustedNon−GAAPnetincomeforthefourthquarterwas(1.31)[26] - Adjusted Non-GAAP net income for the fourth quarter was 133 million, with an EPS impact of 0.37[26]−ForthetwelvemonthsendedSeptember28,2024,TysonFoodsreportedaGAAPnetincomeof0.37[26] - For the twelve months ended September 28, 2024, Tyson Foods reported a GAAP net income of 800 million, with an EPS impact of 2.25[27]−AdjustedNon−GAAPnetincomeforthetwelvemonthsendedSeptember28,2024,was2.25[27] - Adjusted Non-GAAP net income for the twelve months ended September 28, 2024, was 1,103 million, with an EPS impact of 3.10[27]ImpairmentsandContingencies−TysonFoodsrecordedagoodwillimpairmentof3.10[27] Impairments and Contingencies - Tyson Foods recorded a goodwill impairment of 333 million in the fourth quarter of 2023[26] - Legal contingency accruals amounted to 118millioninthefourthquarterof2023[26]RestructuringandPlantClosures−Plantclosuresanddisposalscontributed118 million in the fourth quarter of 2023[26] Restructuring and Plant Closures - Plant closures and disposals contributed 215 million to operating income in the fourth quarter of 2023[26] - Restructuring and related charges for the twelve months ended September 28, 2024, were 31million,downfrom31 million, down from 124 million in 2023[34] - Plant closures and disposals for the twelve months ended September 28, 2024, were 182million,downfrom182 million, down from 322 million in 2023[34] Operational Highlights - The Netherlands facility contributed 86milliontoadjustedoperatingincomeforthetwelvemonthsendedSeptember28,2024[29]−Branddiscontinuationadded86 million to adjusted operating income for the twelve months ended September 28, 2024[29] - Brand discontinuation added 8 million to adjusted operating income for the twelve months ended September 28, 2024[29] - The company had approximately 138,000 team members as of September 28, 2024[37] Future Outlook - The company anticipates total adjusted operating income for fiscal 2025 to be between 1.8billionand1.8 billion and 2.2 billion[11] - Capital expenditures for fiscal 2025 are expected to be between 1.0billionand1.0 billion and 1.2 billion[11] - The company expects free cash flow to exceed dividends for fiscal 2025[11] Depreciation and Amortization - Depreciation expense for the twelve months ended September 28, 2024, was 1,159million,upfrom1,159 million, up from 1,100 million in 2023[34] - Amortization expense for the twelve months ended September 28, 2024, was $229 million, consistent with 2023[34]