Tyson Foods Inc (NYSE:TSN) saw its stock fortunes pointed upward, on the release Monday of first-quarter financial figures.
The Arkansas-based food company reported first-quarter FY22 sales growth of 23.6% year-on-year, to $12.93 billion, beating the analyst consensus of $12.18 billion.
Sales volume of Beef fell 6.2% Y/Y, Pork rose 0.2%, Chicken climbed 3.6%, and Prepared Foods decreased 2.6%. Gross profit increased 71.2% Y/Y to $2 billion, with a profit margin of 15.5%.
The operating margin was 11.3%, and operating income for the quarter more than doubled to $1.45 billion. Adjusted EPS of $2.87 beat the analyst consensus of $1.90.
The company held $2.9 billion in cash and equivalents as of January 1, 2021. Cash provided by operating activities for the three months amounted to $1.4 billion.
"Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace," said CEO Donnie King.
Beginning in fiscal 2022, the company launched a new productivity program, which is designed to drive a better, faster and more agile organization that is supported by a culture of continuous improvement and faster decision making.
Tyson is targeting $1 billion in productivity savings by the end of fiscal 2024 and $300 million to $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline.
"We are currently on track," said Monday’s press release, "to achieve our planned productivity savings for fiscal 2022."
TSN shares are trading higher by $8.51, or 9.6% at $96.80 in Monday’s first hour.
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