Better demand for beef and prepared foods and increased production of chicken sent Tyson Foods’ Q1 2014 income up by 47%, according to its latest financial report. The company reached sales of $8.8 billion, an increase of 4.7% over the first quarter of 2012. Beef sales increased $249 million, a 7% increase, to $3.73 billion, while chicken sales rose $61 million, a 2% increase, to $2.98 billion, according to Reuters.
“I’m very pleased with our strong first quarter results, and I’m confident in my expectations for the full year,” said Donnie Smith, President and CEO. “We’re growing sales and earnings and executing our strategy – including making our third prepared foods acquisition in less than a year – while reinvesting in our existing businesses and buying back shares.”
The company expects protein production (chicken, beef, pork, and turkey) to increase approximately 1% from fiscal 2013 levels and grain supplies to increase as well, resulting in lower input costs.
In a conference call with analysts, Reuters reports that Smith said, “Record high beef prices should continue to 2014, meaning fewer beef promotions and retail and food service.” He added, “Chicken should continue to be the winner,” referring to shoppers’ tendency to switch to lower-cost poultry when beef prices rise.
Congrats on the successful first quarter, Tyson!