Tyson Foods’ 4Q Profit Up 87%, Tallies $540M in FY COVID-19 Expenses

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Tyson Foods Inc. of Springdale reported fourth-quarter revenue and income figures above those predicted by Wall Street analysts Monday.

The company reported revenue of $11.46 billion, an increase over $10.88 billion in the same quarter last year. Tyson Foods reported quarterly income of $692 million, an 87% increase from $369 million a year ago.

Earnings per share was $1.90 for the quarter, up from $1.01. An average estimate from three analysts surveyed by Zacks Investment Research had predicted revenue of $11.11 billion and an average estimate from three analysts had predicted an EPS of $1.15.

“Our business performed well and delivered strong fourth quarter and full-year results,” Tyson Foods CEO Dean Banks said in a news release. “Our team members, agricultural partners, and customers have shown resilience. This has enabled us to maintain and accelerate our efforts to provide global consumers with a safe and accessible food supply.

“While we will continue to face pandemic-related challenges in fiscal 2021, we’re settling the business down to be focused on executing our long-term strategy while generating strong returns for shareholders. I’m excited for the opportunities ahead for this great company, and am certain we have the people, products, and strategies in place to drive future growth.”

Tyson Foods said it had $200 million in pandemic-related expenses in the fourth quarter and $540 million for the fiscal year. Banks said many of the company’s expenditures for safety equipment won’t be repeated as the country prepares for a second wave of the coronavirus.

Banks said the company will use random weekly virus testing of small groups of employees to help stem any potential outbreaks. He also said the health and safety of the company’s employees was the Tyson Foods’ top priority.

“We have seen a dramatic reduction in the number of active COVID cases involving Tyson team members,” Banks said. “We believe we are well prepared for another wave of the virus.”

The company said it predicted its fiscal 2021 revenue would be between $42 and $44 billion. Tyson Foods said it would continue to proactively manage operations during the pandemic but there was no way to know the short- and long-term effects of the pandemic without knowing its length and severity.

“I’m excited about the future of our company and the growth that we can achieve,” Banks said.