Tyson Foods’s first quarter sales and operating income dropped in 2021 compared to its reported figures in 2021. The Springdale company reported $10.46 billion in sales, compared to $10.815 million in 2020. Operating income in 1Q 2021 was $705 while 2020’s first quarter operating income was $758 million.
In 2021, the largest segment of Tyson’s sales were driven by its beef division, which recorded $3.987 billion in sales, a 5.6 percent increase over 2020’s sales of $3.838 billion in the first quarter. The chicken and prepared foods divisions also recorded $2 billion-plus in sales with the chicken division having $2.831 billion in sales and the prepared foods division having $2.113 billion in sales. The pork division had $1.439 billion in sales while the international division had $469 billion in sales.
The company attributed the increase in beef sales volume to “strong domestic and export demand.” Operating income for the beef division was increased as a result of this demand, as well as Tyson’s efforts to “optimize revenues relative to live cattle supply.”
On the other hand, pork sales volume decreased to the temporary shutdown of a production facility due to mechanical malfunction, according to the company. Chicken sales volume declined, the company reports, due to COVID-19 impacts.
Tyson’s beef division also had the largest operating income in 2021’s first quarter at $528 million, up $13.2 percent from 2020’s 1Q, which was $342 million. The prepared foods division had an operating income of $266 million, and the pork division had a $116 million operating income. The chicken division, however, had a $216 million loss in operating income.
The adjusted operating income for Tyson’s 1Q operations was $1.025 billion, a 9.5 percent increase over 2020, when the company reported $826 million in adjusted operating income.
“We delivered strong operating earnings performance, exceeding $1 billion in operating income for the quarter,” Tyson Foods president and CEO Dean Banks said in a statement. “This performance was driven by higher earnings in our Prepared Foods, Beef and Chicken segments and demonstrates our effectiveness in addressing customer and consumer needs, while continuing to manage the ongoing effects of the global pandemic.”
“As we navigate continued market volatility, our multi-protein portfolio creates the fuel for disciplined investments in higher martin, higher growth opportunities ahead. We will continuously seek to remove unnecessary costs from the business and invest in the right areas. Looking forward, I’m confident that our team is executing on the right priorities to meet our commitments and drive shareholder value creation.”
Most recently, Tyson announced its plans to acquire a 49 percent stake in Malayan Flour Mills Berhad’s poultry division. The acquisition is subject to approval from the Malaysian company’s board of directors.
In early January, Tyson also announced plans to expand production at its Wright Brand Bacon facility in Vernon, Texas. The company will be investing $26 million to expand the facility’s production capacity.