Tyson Foods has delivered an increase in annual sales and profits, with the year ending with underlying fourth-quarter earnings per share that beat analyst forecasts.
For the year ended 27 September, Tyson reported a 10% increase in net profit to US$856m. Operating profit rose 4% to $1.43bn.
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The higher annual profits came on the back of an improved top-line. Sales increased 9.3% to $37.58bn.
For the fourth quarter of the year, net profit was down, hitting $137m, compared to $261m a year earlier. Operating income dropped 26.4% year-on-year to $306m.
However, a series of one-off items hit Tyson’s quarterly profits, including costs related to its acquisition of Hillshire Brands, the sale of the US meat group’s operations in Brazil and Mexico and moves to improve the performance of its prepared foods business.
Nevertheless, Tyson’s adjusted earnings per share of $0.87 beat analyst forecasts by $0.11.
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By GlobalDataSales increased to $10.1bn from $8.9bn against the same period last year.
Tyson said chicken sales volume grew as a result of stronger demand as did its prepared food products thanks to the “better product mix” following the acquisition of Hillshire Brands earlier this year. Beef and pork sales volumes however, were lower as a result of lower availability and an increase in selling prices.
Donnie Smith, president and CEO of Tyson Foods, said he was “pleased with the progress” of the integration of Hillshire.
“I believe that when we look back on this merger years from now, we’ll see it as a watershed event. We’re setting higher expectations and anticipating more growth and increased profitability, specifically in the chicken and prepared foods segments.
“Fiscal 2015 should be another great year and is already off to a strong start. We are projecting adjusted earnings for the year in the range of $3.30-3.40 per share, and as we look ahead to 2016, we see continued success and growth.”
Tyson’s shares were up 4.03% in pre-market trading to $42.30.
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