Loading, Please Wait...

CST: 24/08/2019 15:22:18   

Tyson Foods: We’re Activating the Ingredients for More Growth

65 Days ago

Investor Day message highlights company’s value-added, international expansion

NEW YORK, June 20, 2019 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN) continues to meet changing consumer needs and is well-positioned for long-term, sustainable growth, company officials told investors and analysts today during Tyson Foods’ Investor Day at the New York Stock Exchange. 

Chairman John Tyson, President and CEO Noel White and members of the company’s senior management team spoke at the event, which showcased the strength of Tyson’s diversified portfolio, execution of its long-term growth strategy, efforts to increase its value-added product offerings, continued innovation in food and sustainability, and expansion into new global markets.

“We’re poised for long-term growth because we understand consumers and can meet their needs through a broad portfolio of diverse products,” said White. “As we look ahead, prepared foods and value-added chicken are expected to be the most profitable segments and international is where we see the most opportunity for significant growth.”

“We’re excited about the direction of our company and the diversity of our products, businesses, people and locations,” said John Tyson. “We strive to provide quality, safe, sustainable and affordable food, while supporting our communities, customers, people and our shareholders.”

Tyson Foods has delivered a total shareholder return of 695 percent over the past 10 fiscal years, compared to a 328 percent return of the S&P 500 during the same timeframe. “Our balanced approach to activating a suite of growth models allows us to invest, build, buy and partner – and it’s working,” said Chief Financial Officer Stewart Glendinning.

Additional key points shared at the event include:   

  • Tyson Foods’ Prepared Foods business has become a large, profitable growth engine. The segment represented 3 percent of company profits five years ago and today generates 30 percent.
  • Through recent international acquisitions, Tyson Foods is positioned to take advantage of rising global protein demand. Over the next five years, it is estimated that nearly 98 percent of protein consumption growth will happen outside the U.S. and approximately 70 percent of that growth will be in Asia.
  • A worldwide decrease in pork supply due to the impact of African Swine Fever on the Chinese pig herd could offer significant upside to Tyson Foods’ poultry, pork and beef businesses, but could also increase raw material costs for the company’s prepared foods business.
  • Beef has enjoyed demand growth resulting in higher beef margins. This trend is expected to continue due to factors such as increasing global middle-class income, increases in live cattle supplies and the continued growth of the company’s case-ready, value-added business. 
  • Tyson Foods’ poultry business continues to grow its mix of value-added products through acquisition and innovation in the retail and foodservice channels. Examples in retail are the recent acquisition of the Smart Chicken® brand that offers premium, organic, air-chilled chicken and plans to launch new Tyson®Air Fried chicken this fall.
  • Demand growth for alternative proteins is being driven by people who love eating meat but also are open to a diet that includes plant-based proteins. Company leaders believe this growth is “incremental and meaningful in potential size” and recently introduced the company’s first plant-based and blended products.

A video webcast replay of the Investor Day presentations is available by going to Tyson Investor Relations.

About Tyson Foods 
Tyson 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 had 121,000 team members at September 29, 2018. 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. Visit www.tysonfoods.com

Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements, including statements regarding expected growth in protein consumption, operating segments’ relative and absolute profitability, investor value, and effects of African Swine Fever, all of which involve a number of risks and uncertainties, including changing customer and consumer preferences and our ability to realize benefits of recent acquisitions. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “will,” “should,” “estimate,” “expect,” “intend,” “believe” and other similar expressions (or the negative of such terms) are intended to identify forward-looking statements. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results and the timing of events may differ materially from the results and/or timing discussed in the forward-looking statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date of this communication, and Tyson Foods does not undertake any obligation to update any forward-looking statement except as required by law.

CONTACTS
News Media: Gary Mickelson, 479-290-6111, gary.mickelson@tyson.com
Investors: Jon Kathol, 479-290-4235, jon.kathol@tyson.com

Category: IR, Newsroom

Is your business listed correctly on America’s largest city directory network of 1,000 portals?