(Reuters) – U.S. meatmaker Tyson Foods on Monday forecast full-year 2023 sales above Wall Street estimates, signaling firm demand for its higher-priced chicken and beef cuts despite of high levels of inflation.
The company projected sales for the year 2023 of between $55 billion and $57 billion, compared with analysts’ expectations of $53.60 billion, according to IBES data from Refinitiv.
Demand for premium cuts of beef fell in the fourth quarter compared with a year ago, Tyson said.
Sales volume in the company’s chicken business, the largest after beef, rose 1.1% in the quarter, even as Tyson increased prices an average of 18.2%.
The manufacturer’s shares rose about 1% in premarket trading after the company said its sales rose about 7% to $13.74 billion, beating analysts’ average estimate of $13.50 billion. dollars.
The company, however, thwarted adjusted profit estimates as its margins remained pressured due to rising animal feed costs and commodity prices – driven by lingering supply chain challenges across the industry and the war in Ukraine.
Tyson reported an operating margin of 5.6% in the reported quarter, compared to 14.9% a year earlier.
Excluding items, Tyson earned $1.63 a share, thwarting an estimate of $1.73 a share.
(By Ananya Mariam Rajesh and Tom Polansek)
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