Tyson Foods Inc quarterly revenue beat estimates on Monday, as demand for its chicken and beef remained steady in the face of decades-high inflation.
Packaged food makers have so far faced little pushback from consumers on price increases forced by surging costs, but analysts have raised concerns the companies could be approaching price ceilings as inflation pinches consumers' spending power.
Donnie King, president and CEO of Tyson Foods, said, "We delivered solid results during the third quarter, focusing on operational excellence and aggressive cost management.
"The turnaround of our chicken business continues, and we continue to be the market share leader in many of our retail business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands."
Sales volume in the company's beef business, its largest, increased 1.3% in the third quarter.
The Jimmy Dean sausage maker's sales increased to $13.50 billion (€13.2 billion) in the third quarter from $12.48 billion (€12.2 billion) a year earlier.
Analysts on average had expected sales to be at $13.25 billion (€13 billion), according to IBES data from Refinitiv.
Net income attributable to Tyson increased to $750 million (€735.6 million), or $2.07 per share, in the reported quarter, from $749 million (€734.6 million), or $2.05 per share, a year earlier.
Read More: Tyson Foods Raises Annual Sales Forecast On Higher Meat Prices
King added, "We maintained double-digit sales and earnings growth year to date as well as progressing toward our goal of delivering more than $1 billion in recurring productivity savings by the end of fiscal 2024."
"I'm optimistic about our ability to win with our team members, win with our customers and consumers and win with excellence in execution."
News by Reuters, additional reporting by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.