Tyson Foods Inc. CEO Noel White reiterated at the Consumer Analyst Group of New York (CAGNY) annual conference that, “Tyson Foods’ scale, diversified portfolio, international footprint and financial track record uniquely position the company for continued, long-term growth at a time when there’s growing global demand for protein.”
Dean Banks, who recently joined Tyson Foods as its president, said, “We have a global opportunity and innovation across our portfolio is the key,” adding, “I have a passion for innovation and have been impressed with the innovation culture at Tyson Foods.”
Banks highlighted Tyson Air Fried Perfectly Crispy Chicken, Tyson Instant Pot1 Kits, Jimmy Dean Omelet Minis, Jimmy Dean Loaded Sausage Bites, Hillshire Snacking Bruschetta and Pact as examples of Tyson Foods’ innovations sparked by insights into consumers’ desire for protein-packed foods that are fresh, flexible and functional.
He described the strength of Tyson’s businesses:
- The company’s beef and pork businesses are elevating their product mix through premium programs.
- Tyson Foods’ chicken business model is a competitive advantage over the long term due to the diverse portfolio of products and innovation driving satisfaction with customers.
- The Prepared Foods segment is experiencing “amazing growth and momentum. Insights and innovation are driving sales growth and creating shareholder value.”
Banks reported that Tyson Foods’ alternative protein portfolio shows tremendous promise. “It supplements our existing protein portfolio,” he said, “and I’ve been impressed with the quality and breadth of options we have planned for this summer.” He also noted how the company has expanded its international business through both organic growth and acquisitions.
Stewart Glendinning, chief financial officer, provided an overview of Tyson’s history of delivering strong financial performance and shareholder returns.
“We generate a lot of cash, and we focus on getting the highest returns on that money,” Glendinning said. “We have a disciplined approach to mergers and acquisitions, and we’re a team that’s focused on returns greater than our cost of capital.”
Glendinning reiterated that the company’s fiscal second quarter is typically the softest and that the company expects earnings lower than Q2 last year. As discussed on the company’s most recent earnings call, this is driven by high levels of overall protein availability, continued weak market conditions in chicken, higher raw material costs and some residual ERP implementation impacts in Prepared Foods along with normal seasonal cyclicality in beef and pork. At the conference, the company noted that these trends have persisted.
Glendinning said, “However, we manage for the long term and over time we expect to achieve high single-digit adjusted EPS growth and achieve our value-added sales growth target of more than 3%.”
1 Instant Pot® is a registered trademark of Instant Brands Inc.
Source: Tyson Foods Inc.