Meat-producing giant Tyson Foods reported its 2021 fourth quarter and full-year financial figures on Nov. 15, showing that the company achieved double-digit sales growth in the three months ended Oct. 2 despite considerable volume decreases in nearly all business segments.
Tyson reported Q4 total sales of $12.81 billion, up 11.7 percent year-over-year. Volume was down 10.7 percent year-over-year, while average price jumped 22.5 percent. Operating profit of $1.91 billion doubled the $962 million it had a year earlier, and net profit likewise soared to $1.36 billion after a $657 profit a year earlier.
Tyson had a Q4 net profit of $1.36 billion, doubling the $654 million of a year earlier.
“We delivered double-digit sales and earnings growth during the fourth quarter and full year, and our performance was supported by our diverse portfolio and continued strength in consumer demand for protein,” said Donnie King, president and CEO of Tyson Foods. "We delivered a record performance in our beef segment and experienced share gains in our retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands, while supporting the continued recovery in foodservice.”
Tyson said it incurred direct incremental expenses associated with the impact of COVID-19 totaling approximately $65 million and $335 million for the fourth quarter and full-year fiscal 2021, respectively.
The growth in sales and profit figures came amid double-digit volume declines in all domestic product segments. In Q4:
- Beef sales of $5.01 billion jumped 17.3 percent year-over-year, while volume fell 15.4 percent and average price spiked 32.7 percent. Excluding the impact of an additional week in 2020, volume fell 8.8 percent. Operating profit of $1.15 billion dwarfed the $466 million of a year earlier as operating margin of 22.9 percent more than doubled the 10.9 percent in Q4 2020.
- Pork sales of $1.65 billion jumped 20.3 percent year-over-year, while volume fell 17.7 percent (-11.3 percent without extra week) and average price spiked 38.0 percent. Operating profit of $78 million was less than half of the $174 million of a year earlier, while operating margin of 4.7 percent considerably trailed the 12.7 percent of a year earlier.
- Chicken sales of $3.87 billion increased 12.8 percent year-over-year, while volume fell 5.9 percent (+1.3 percent without extra week) and average price jumped 18.7 percent. An operating loss of $136 million was a total opposite of a $86 million profit a year earlier, with Q4 operating margin of -3.5 percent was likewise a reversal from a 2.5 percent margin a year earlier.
- Prepared Foods sales of $2.25 billion dipped 1.0 percent year-over-year, while volume fell 12.5 percent (-5.7 percent without extra week) and average price increased 11.4 percent. Operatin margin of $823 million dwarfed the $249 million of a year earlier, while operating margin of 36.5 percent likewise dwarfed the 10.9 percent of a year earlier.
- International/Other sales of $546 million increased 11.2 percent year-over-year, while volume increased 3.2 percent and average price increased 8.0 percent. An operating loss of $3 million followed a $13 million loss from a year earlier.
For the full fiscal 2021, Tyson's sales of $47.05 billion increased 8.9 percent over 2020, while volume decreased 2.8 percent and average price increased 13.0 percent. Operating profit of $4.40 billion spiked 46.1 percent, with operating margin of 9.3 percent up from 7.0 percent of a year earlier.
Tyson had a 2021 total net profit of $3.05 billion, up from $2.06 billion in 2020.