(AOF) – Tyson Foods fell nearly 8% to 52.17 dollars in New York after presenting disappointing results in the third quarter of 2023. The group posted an operating loss of 350 million dollars against a profit of operating $1.03 billion a year ago in the same period, representing a decline of 134%. In this quarter, it posted a loss per share of $1.18 against earnings per share of $2.07 a year ago, a decline of 92%. Its revenues fell by 3% from 13.49 to 13.14 billion dollars in one year.
Gross margin fell sharply from $1.61 billion to $677 million.
In addition, over the first 9 months of activity of the year 2023, the American agri-food company saw its operating profit drop from 3.64 billion dollars to 68 million dollars in one year, a drop of 98%. .
Over these first 9 months, Tyson Foods shows a loss per share of 0.56 cents, whereas a year earlier, it posted earnings per share of 7.42 dollars.
Not being reassured by its quarterly accounts, Tyson Foods also reports the announcement of the closure of four additional chicken factories in order to reduce costs and improve the use of its capacities.
On the outlook side, Tyson Foods indicated last May that it was aiming for sales between 53 and 54 billion dollars for the 2023 financial year against a previous forecast of 55 to 57 billion dollars.
For its ready meals segment, the company forecasts an adjusted operating margin of 8-10% for 2023, thanks to volume growth, productivity and tight revenue management.
However, for both its beef and chicken businesses, the group expects an adjusted operating margin of between -1 and 1% on these two segments as margins are expected to decline following the USDA announcements. The United States Department of Agriculture projects that domestic beef and chicken production will decline about 3% in fiscal year 2023 compared to fiscal year 2022.
For its pork business, Tyson Foods expects an adjusted operating margin of between -4 and -2%. The USDA estimates that domestic pork production will be relatively stable in fiscal year 2023 compared to fiscal year 2022.
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