Tyson Foods’ profit for the most recent quarter zoomed to nearly triple its take for the same quarter last year, buoyed by price increases and consistently high demand for its products.
Tyson’s profit for the first quarter of fiscal 2022 was $1.12 billion, a 140% increase from the same quarter in 2021. Sales were $12.93 billion, a 24% increase over 2021.
Much of the increase in profit comes from the higher prices Tyson is charging for many of its products. On a conference call with the media, CEO Donnie King characterized this as a response to Tyson’s own increased expenses for labor, animals and other needs.
“We’re not asking customers or the consumer ultimately to pay for our inefficiencies, we’re asking them to pay for inflation,” King said.
Although Tyson’s beef sales declined 6% by volume, its operating margin increased from 13% to 19%. With chicken, sales volume increased 37%, while margins improved to 4% from being negative in the first quarter of 2021.
