Springdale, Ark., meat processor Tyson Foods reported net income of $316 million, or 88 cents a share, for the first quarter of fiscal 2023 — missing consensus estimates by nearly 50 cents a share and coming in significantly lower than last year’s Q1 results.
The company cited “market dynamics and some operational inefficiencies” as the primary issues impacting profitability, and CEO Donnie King told analysts the company got “hit in the mouth” by a severe oversupply in protein on the market.
Tyson reported sales volume gains in its beef (2.9%), chicken (2.5%), prepared foods (1.2%) and international and other foods (6.4%) divisions, while sales in its pork division slid 7.4% in the quarter.
This year’s results represented a 68% decline off last year’s Q1 results of $1.12 billion — which were nearly three times higher than 2021 Q1 results, driven predominantly by higher prices and consistently high demand for meat and poultry products.
