SPRINGDALE, Ark., Dec. 09, 2021 (GLOBE NEWSWIRE) -- Tyson Foods (NYSE:TSN) is a global protein leader with a diverse portfolio of iconic brands and a clear and compelling path to growth, company leaders told investors and analysts today during Tyson Foods' virtual Investor Day.

Chairman John H. Tyson, President and CEO Donnie King and members of the company's senior leadership team spoke at the event. They showcased Tyson Foods' role as a leading protein company in a growing, global market; the company's efforts to increase value-added and overall production capacity as part of a plan to drive accelerated volume and earnings growth; and a new productivity program that is expected to deliver more than $1 billion in recurring savings by fiscal 2024.

"We have three overarching priorities that direct our actions – winning with team members, winning with our customers and consumers, and winning with excellence in execution," said King. "We are working to enhance our portfolio and capacity to better serve demand – this includes increasing the relative contribution of branded and value-added sales to our overall mix. By focusing on our product portfolio and by adding capacity to meet demand, we expect to outpace the market."

King also noted, "We are focused on improving our process effectiveness across our broader operations and functions. Our new productivity initiative is designed to drive a better, faster, and more agile organization that is supported by a culture of continuous improvement and faster decision making."

Additional key points shared during the event included:

Global protein consumption across beef, pork, and chicken is forecast to rise by close to 95 billion pounds over the next 10 years.
Tyson Foods is targeting volume growth ahead of the market in every segment. The company expects to open 12 new plants over the next two years, increasing capacity by about 1.3 billion pounds. It is also targeting having 50% of its volume as value-added by the end of fiscal 2024.
The company expects a recovery of its chicken business to a 5 to 7% operating margin by mid-fiscal 2022 and expects to deliver stronger margins through fiscal 2024.
Tyson Foods wants to be the most sought-after place to work, and this starts with "an unrelenting focus on safety" as well as a leadership position on compensation, benefits, and automation.
As part of the new productivity initiative, Tyson Foods plans to invest over $1.3 billion in capital in new automation capabilities over the next three years to increase yields, reduce labor costs and associated risks, and ultimately deliver cumulative savings. This initiative is designed to help the company's facilities improve production capacity and efficiency and continue to unlock value.
The company expects to deliver more than $250 million in savings by leveraging new digital solutions like artificial intelligence and predictive analytics to drive efficiency in operations, supply chain planning, logistics, and warehousing.
Each Tyson Foods business segment has a compelling financial path forward. The company expects adjusted earnings per share growth over time, especially in prepared foods, chicken and international.
Volume growth is expected to outpace the market at 2% per year, which will help support adjusted earnings per share growth.
The company is also focused on ensuring deployed capital delivers strong returns and is targeting approximately 12% return on invested capital.
Tyson Foods is dedicated to delivering sustainable food at scale. In June, the company introduced a purpose-driven sustainability strategy that spans three major pillars: empowering people, customers, and communities; conserving natural resources and protecting our planet; and innovating for smart, responsible agriculture.

A replay of today's virtual Investor Day will be available through the Investor Relations site.

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 137,000 team members as of October 2, 2021. 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.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2022, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt levels, return on invested capital, value-added product growth, capital expenditures, tax rates, access to foreign markets and dividend policy). These forward-looking statements are subject to a number of factors and uncertainties that could cause our actual results and experiences to differ materially from anticipated results and expectations expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) the COVID-19 global pandemic and associated responses thereto have had an adverse impact on our business and operations, and the extent that the COVID-19 pandemic continues to impact us will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the speed and effectiveness of vaccine and treatment developments and their deployment, and public adoption rates of COVID-19 vaccines and their effectiveness against emerging variants of COVID-19, including the Delta and Omicron variants; (ii) our ability to make effective acquisitions or joint ventures and successfully integrate newly acquired businesses into existing operations; (iii) the effectiveness of our financial fitness program; (iv) the implementation of an enterprise resource planning system; (v) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (vi) cyber incidents, security breaches or other disruptions of our information technology systems; (vii) risks associated with our failure to consummate favorable acquisition transactions or integrate certain acquisitions' operations; (viii) the Tyson Limited Partnership's ability to exercise significant control over the Company; (ix) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (x) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (xi) outbreak of a livestock disease (such as African swine fever (ASF), avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an adverse effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (xii) changes in consumer preference and diets and our ability to identify and react to consumer trends; (xiii) effectiveness of advertising and marketing programs; (xiv) significant marketing plan changes by large customers or loss of one or more large customers; (xv) our ability to leverage brand value propositions; (xvi) changes in availability and relative costs of labor and contract farmers and our ability to maintain good relationships with team members, labor unions, contract farmers and independent producers providing us livestock; (xvii) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (xviii) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws; (xix) adverse results from litigation; (xx) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xxi) impairment in the carrying value of our goodwill or indefinite life intangible assets; (xxii) our participation in multiemployer pension plans; (xxiii) volatility in capital markets or interest rates; (xxiv) risks associated with our commodity purchasing activities; (xxv) the effect of, or changes in, general economic conditions; (xxvi) impacts on our operations caused by factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemics or extreme weather; (xxvii) failure to maximize or assert our intellectual property rights; (xxviii) effects related to changes in tax rates, valuation of deferred tax assets and liabilities, or tax laws and their interpretation; (xxix) the effectiveness of our internal control over financial reporting, including identification of additional material weaknesses; and (xxx) the other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

Media Contact: Gary Mickelson, 479-290-6111

Investor Contact: Megan Britt, 479-236-4927

Category: IR

Tyson Foods: Outpacing a Growing, Global Protein Market