Tyson Foods plans to build on its already healthy operating margins and bottom line, its top executives told analysts Tuesday at the virtual conference of the Consumer Analyst Group of New York.
Speaking in a webcast to a group of financial analysts and others, CFO Stewart Glendinning said, “We expect volume growth and strong profitability across the board.” The company is poised for growth and improved margins across all of the proteins it processes, including plant-based alternative proteins, Glendinning said.
In chicken, Tyson’s biggest segment, the company expects a run rate profitability of 5% to 7% by the middle of fiscal 2022, with volume growth of 4% to 5% over the next three years. “Volume improvement, as we continue to gain traction on running our plants full, will be a key driver of our chicken recovery,” Glendinning said.
Increasing margins is a priority, he said: “We’re focused on cost reduction, asset utilization and pricing for inflation to drive higher operating margins. We have a comprehensive program to take cost out and drop it to the bottom line.”
Glendinning’s presentation was preceded by one from CEO Donnie King, who mentioned sustainability as a Tyson priority going forward.
“We’re dedicated to delivering sustainable food at scale,” King said. “Fulfilling the mission requires respecting and protecting natural resources as we grow our business, including the land, water and energy needed to grow ingredients, raise animals and run our facilities.”
