SPRINGDALE, Ark. — Tyson Foods Inc. experienced an $834 million increase in revenue between its 2018 and 2019 fiscal third quarters, the company said during its third-quarter earnings call Aug. 5. The company expects total 2019 sales to hit $43 billion and to grow 6% to 7% in 2020, it said.
This surge was driven by innovation and marketing support in the company’s retail sector, said Noel White, president, CEO and director of Tyson, Springdale, Ark., during the call.
“We remain on track for a strong year,” he said. “Total Tyson and the core business lines have posted four straight quarters of growth. In fact, this growth is the highest in two years.”
Here are four highlights from Tyson’s third-quarter 2019 …
Prepared foods are up
Tyson’s Prepared Foods segment produced an operating margin of 12% through the first nine months of its fiscal 2019, a record-setting pace, said White. This resulted from innovations such as Jimmy Dean’s Simple Scrambles, Breakfast Bowls and Eggwiches, as well as Aidells Whole Blends and Raised & Rooted Nuggets. Tyson foresees Raised & Rooted, which launched in July, reaching 4,000 retailers by the end of September, White said.
“This kind of quick start demonstrates the capabilities and scale and national reach of Tyson Foods,” he said.
Plant-based offerings to come
Tyson will roll out multiple plant-based retail foodservice offerings within the next year, White said during the call. They will include both plant and blended protein options under the Raised & Rooted portfolio as well as other flagship Tyson brands, he said.
Tyson expects its capital expenditures to reach approximately $1.3 billion by the end of its fiscal 2019, as well as by the end of 2020, said Stewart Glendinning, executive vice president and CFO of Tyson, during the call. These expenditures will be spent on production growth, safety, animal well-being, infrastructure replacements and operational improvements that will provide labor efficiencies, yield improvements and sales channel flexibility.