Investing.com -- Tyson Foods (NYSE:TSN) has said it expects sales to be flat in its current fiscal year, as the world's second-largest processor and marketer of chicken, beef and pork warned that domestic production of protein "should decrease" in 2024.
In an update on Monday, the Springdale, Arkansas-based group projected "relatively flat" revenue during the year. Total sales over the twelve months ended on Sept. 30 slipped to $52.88 billion, missing company-provided estimates of $53B-$54B, as beef and pork volumes dropped. Meanwhile, average selling prices, which had risen last year during a sharp jump in U.S. inflation, dipped by 1.5%.
“While economic headwinds persist, we are moving in the right direction and managing what we can control," said Tyson Chief Executive Officer Donnie King.
Fourth-quarter sales fell by 2.8% compared to the corresponding period last year to $13.35B, below Bloomberg consensus expectations of $13.71B. Adjusted operating profit also slumped by 71% to $236M, although it topped Wall Street forecasts.
Tyson flagged in a statement that the U.S. Department of Agriculture has indicated that output of beef, pork, chicken and turkey should decline next year. In particular, Tyson predicted that it will post a loss of $400M to breakeven at its beef unit -- its largest by sales in 2023.
Shares in Tyson fell in premarket U.S. trading on Monday.