Tyson Foods Uniquely Positioned to Meet Global Protein Demand
20 February 2020 - 9:01AM
Tyson Foods, Inc. (NYSE: TSN) CEO Noel White reiterated today 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 Pot®1 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.
About Tyson FoodsTyson Foods, Inc. (NYSE: TSN)
is one of the world’s largest food companies and a recognized
leader in protein. Founded in 1935 by John W. Tyson and grown under
three generations of family leadership, the company has a broad
portfolio of products and brands like Tyson®, Jimmy Dean®,
Hillshire Farm®, Ball Park®, Wright®, Aidells®,
ibp®, and State Fair®. Tyson Foods innovates continually
to make protein more sustainable, tailor food for everywhere it’s
available and raise the world’s expectations for how much good food
can do. Headquartered in Springdale, Arkansas, the company has
141,000 team members. Through its Core Values, Tyson Foods strives
to operate with integrity, create value for its shareholders,
customers, communities and team members and serve as a steward of
the animals, land and environment entrusted to it.
Forward-Looking Statements Certain information
contained in this press release may constitute forward-looking
statements, such as statements relating to expected performance,
expected protein demand, new products and innovation, cash flows,
and capital returns. These forward-looking statements are subject
to a number of factors and uncertainties which could cause our
actual results and experiences to differ materially from the
anticipated results and expectations expressed in such
forward-looking statements. We caution readers not to place
undue reliance on any forward-looking statements. These
statements speak only as of the date made, and we do not intend,
nor do we undertake any obligation to update these statements.
Media Contact: Gary Mickelson, 479-290-6111Investor Contact: Jon
Kathol, 479-290-4235Category: IR, Newsroom
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