Speaking at the Consumer Analyst Group of New York annual conference, new Tyson Foods president Dean Banks highlighted innovation carried out by the business.
“We have a global opportunity and innovation across our portfolio is the key,” he said. “I have a passion for innovation and have been impressed with the innovation culture at Tyson Foods.”
Banks referenced Tyson Air Fried Perfectly Crispy Chicken, Tyson Instant Pot Kits, Jimmy Dean Omelet Minis, Jimmy Dean Loaded Sausage Bites, Hillshire Snacking Bruschetta and Pact as examples of Tyson Foods’ innovations that have been “sparked by insights into consumers’ desire for protein-packed foods that are fresh, flexible and functional”.
He also mentioned the company’s beef and pork businesses that he said are elevating their product mix through premium programs, and that its chicken business model offers a competitive advantage over the long term due to the diverse portfolio of products and innovation.
Banks added that the Prepared Foods segment is experiencing “amazing growth and momentum. Insights and innovation are driving sales growth and creating shareholder value”.
He also said Tyson Foods’ alternative protein portfolio shows “tremendous promise”. “It supplements our existing protein portfolio,” he said. “And I’ve been impressed with the quality and breadth of options we have planned for this summer.”
Chief financial officer Stewart Glendinning spoke about Tyson’s financial heath.
“We generate a lot of cash, and we focus on getting the highest returns on that money,” Glendinning said. “We have a disciplined approach to mergers and acquisitions, and we’re a team that’s focused on returns greater than our cost of capital.”
He added that the company’s fiscal second quarter is typically the softest and that the company expects earnings lower than Q2 last year, driven by high levels of overall protein availability, continued weak market conditions in chicken, higher raw material costs and some residual ERP implementation impacts in Prepared Foods along with normal seasonal cyclicality in beef and pork.
Glendinning said: “However, we manage for the long term and over time we expect to achieve high single-digit adjusted EPS growth and achieve our value-added sales growth target of more than 3%.”