Tyson Price Hikes Buttress Bottom Line

May 9, 2022
Tyson Foods raised its product prices enough to ensure a huge jump in profits for the most recent quarter, even as sales declined.

Tyson Foods raised its product prices enough to ensure a huge jump in profits for the most recent quarter, even as sales declined.

Tyson’s profit for the first three months of this year was $829 million, a 74% increase from a year earlier. Sales stood at $13.1 billion, a 14% decline from last year.

Company officials attributed the success to trade customers’ and consumers’ acceptance of price hikes for Tyson products. Those increases averaged 18%, with beef products going up 24%.

Tyson now expects total sales of $52 billion to $54 billion for the full year, up from earlier guidance of $49 billion to $51 billion. Its biggest concerns are inflationary pressures on meat and other inputs, and labor difficulties.

“Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, productivity, and bringing more capacity on line,” CEO Donnie King said in remarks to investors. As for labor, Tyson is trying to attract workers through increasing pay and expanding programs like child care and continuing education.

Sponsored Recommendations

Kaeser is the world’s leading air systems specialist and offers a full range of compressed air solutions for almost any application. From industrial compress...
Take a moment to see the scope of Kaeser's commitment to innovative system designs that guarantee ultra-reliable compressed air, easy maintenance, and greater efficiency.
Ventilation has a huge impact on the ambient temperature in the compressor room and is often the missing link to temperature regulation issues. Here are four factors to consider...
Learn how to get a smart, reliable, energy-efficient compressed air system delivered in a turnkey, weatherproof and temperature-controlled enclosure that needs little or no onsite...