Tyson Foods said it made a “great” start to the year, as sales and earnings rose in the wake of its acquisition of Hillshire Brands.
“Tyson’s fiscal year is off to a great start with our first full quarter as a combined company producing record sales and adjusted operating income,” said president and CEO Donnie Smith.
Go deeper with GlobalData
The company said sales were up 23.5%, climbing to US$10.82bn. Gains were driven by a one-fifth increase in beef sales. Tyson’s prepared foods arm, a division augmented by Hillshire, saw revenue rise by almost one-quarter.
Operating profit growth mirrored the group’s top line expansion, rising 23.5% to $509m. On an adjusted basis, stripping out one-time costs associated with Hillshire, operating income was up 37% to $564m. Net income increased 21.7% to $309m as higher finance expenses were partially offset by lower tax costs.
During the period, Tyson suggested it made strides in integrating the Hillshire business. “We achieved $60m in synergies in the first quarter, and we are confident we will exceed the $225m synergy target for this fiscal year,” Smith predicted. The group was also able to use its “strong” cash flow generation to pay down debt by $650m in the period.
Shares in the meat group rose almost 2% in pre-market trading in New York today.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
