Tyson Foods Inc has fallen short of analysts' estimates for quarterly revenue, as the leading U.S. meat processor was hit by lower chicken prices.
Net income attributable to the company rose to $676 million (€605 million), or $1.84 per share, in the third quarter ended June 29, from $541 million, or $1.47 per share, a year earlier.
Sales rose 8.3% to $10.89 billion (€9.74 billion)
Analysts on average had expected revenue of $11.05 billion, according to IBES data from Refinitiv.
In Line With Expectations
“Overall, third quarter earnings were in line with our expectations,” commented Noel White, Tyson’s president and CEO. “Volume growth in our core retail lines continues to outpace other large food companies and the total food and beverage category, driven primarily by our new product innovation.
“Our Prepared Foods and Beef segments produced strong results in the quarter, while results in the Chicken segment were mixed, and the Pork segment was negatively affected by increased hog costs.”
White added that the African Swine Fever outbreak has impacted its hog supplies in Asia.
“Given the magnitude of the losses in China’s hog and pork supplies, the impending impact on global protein supply and demand fundamentals is likely to be a multi-year event,” he said.