Tyson Foods, Inc. (TSN) stock is higher today after the global chicken and beef supplier reported earnings for the fourth quarter of 2021.
The company, whose brands include Tyson, Jimmy Dean, and Hillshire Farm, posted sales for the quarter of $12.8 billion, a jump of over $1.4 billion year-over-year, and reported GAAP EPS of $8.34, up 48% from the prior year.
Global Demand
Speaking on the strong sales figures, Donnie King, President & CEO of Tyson Foods commented, “We delivered double digit sales and earnings growth during the fourth quarter and full year, and our performance was supported by our diverse portfolio and continued strength in consumer demand for protein.”
In the quarter, beef sales increased significantly, with the segment jumping 15% to 5.1 billion.
While the average sales price increased due to labor and transportation price hikes, demand for beef products remained strong.
Lingering Covid-19 Expenses
Despite the strong sales, the company stated that it incurred direct incremental expenses associated with the impact of COVID-19 totaling approximately $65 million.
Tyson stated that these expenses included "team member costs associated with worker health and availability including direct costs for personal protection equipment, production facility sanitization, COVID-19 testing and vaccinations, donations, product downgrades, rendered product and certain professional fees."
In a worrying sign, Tyson anticipates some of these direct expenses to become permanent over time.
