Tyson Food’s income statement was slowed down by a fire. During the last fiscal period net profits dropped by 8.8%, even if sales increased by 5.5%. the group stays positive.
The Numbers
Sales were up by 8.9%, but operating profits decreased. The results for the fourth quarter of the year don’t cause Tyson Foods to smile, as up to September 28th the company had sold goods for 10.884 billion USD, against the 9.999 recorded the previous year. During the same period, the US meat group saw its operating profits decrease from 819 million USD to 604. A performance reflected throughout the year: during the current fiscal year the food giant’s revenue was of 42.405 billion USD (40.052 during the previous fiscal period), but at the same time operating profits fell by 8.8%, equal to a decrease from 3.032 billion USD to 2.827.
The Causes
Tyson Foods income statement was affected by a fire. One of the main factors attributed to the negative performance by the group was the vast fire that broke in Tyson Food’s Kansas’ production site. On one side, the flames blocked production, and on the other they caused a jump in operating costs equal to 31 million USD. Even with this piece of information, the company remains optimistic. “The 2019 fiscal year was filled with positive signs regarding our growth strategy – explains Noel White, president and CEO of Tyson Foods -. We increased our global presence and began innovating our iconic brands. We are very optimistic when thinking of the 2020 fiscal results – he concludes – and at the moment believe we will cover or surpass our net profits’ forecasts”.
Image taken from the Facebook account of Tyson Foods
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