TYSON FOODS has grown sales in its third fiscal quarter but adjusted operating income has dropped from $811m in the same period a year before, to $796m.
Revenues topped $10.88bn in Q3, which covers 12 weeks to 29 June, compared with $10.05bn the year before.
Chief executive Noel White said: “Overall, third
“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.”
“The African Swine Fever outbreak continues to take its toll on hog supplies in Asia; however, we have not yet experienced significant benefits to our Pork, Chicken or Beef segments. 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.”
The poultry division of Tyson posted strong income growth in Q3, from $196m in 2018 to $237m this year, attributed to the acquisition of integrator Keystone Foods, as well as Tecumseh Poultry, LLC and American Proteins, Inc.
But operating income was lower in the first nine months, “due to increased operating costs and market conditions, partially offset by increased results in the third quarter of fiscal 2019 which was impacted by lower feed ingredient costs including hedging results”.