Tyson Foods, Inc. (TSN) CEO Donnie King on Q4 2021 Results - Earnings Call Transcript
Nov. 15, 2021
Tyson Foods, Inc. (NYSE:TSN) Q4 2021 Earnings Conference Call November 15, 2021 9:00 AM ET
Donnie King President and Chief Executive Officer
Megan Britt Vice President of Investor Relations
Stewart Glendinning EVP Chief Financial Officer
David Bray Group President Poultry
Noelle Omara Group President Prepared Foods
Shane Miller Group President Fresh Meats
Conference Call Participants
Ben Bienvenu Stephens
Ben Theurer Barclays
Peter Galbo Bank of America
Anoori Naughton JP Morgan
Alexia Howard Bernstein
Adam Samuelson Goldman Sachs
Ken Zaslow Bank of America
Good day and welcome to the Tyson Foods Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Megan Britt, Vice President of Investor Relations. Please go ahead, ma'am.
Hello, and welcome to the Fourth Quarter Fiscal 2021 Earnings Conference Call for Tyson Foods. Prepared remarks today will be provided by Donnie King, President and Chief Executive Officer and Stewart Glendinning, EVP, and Chief Financial Officer. Additionally, David Bray, Group President Poultry, Noelle O'mara, Group President Prepared Foods, and Shane Miller, Group President Fresh Meats will join the live Q&A session. We have prepared presentation slides to supplement our remarks and these are available on the Investor Relations section of the Tyson website and through the link to our webcast.
During this call, we'll make forward-looking statements regarding our expectations for the future. These statements are subject to risks, uncertainties, and assumptions which may cause actual results to differ materially from our current projections. Please refer to our forward-looking statement disclaimer on slide 2, as well as our SEC filings for additional information concerning risk factors that could cause our actual results to differ materially from our projections. Please note that references to earnings per share, operating income, and operating margin, and our remarks are on an adjusted basis, unless otherwise noted. For reconciliations on these non-GAAP measures to their corresponding GAAP measures, please refer to our earnings press release. I'll now turn the call over to Donnie.
Thank you, Megan. I'll start by saying that the safety of our team members continue to be our top priority. And I'm very pleased that we now have a team in the U.S. that is fully vaccinated. As we focus on meeting the needs of our customers and consumers, vaccination is the best way that we can protect our team members from the impacts related to COVID-19 and ensure business continuity. Earlier today, we reported strong fourth quarter in fiscal year 2021 results. We delivered double-digit sales and earnings growth in a challenging year. Our performance was supported by continued strength in consumer demand for protein. Our retail core business lines which include our iconic brands, Tyson, Jimmy Dean, Hillshire Farm, and Ball Park have driven strong share growth in the retail channel, delivering 13 quarters of consecutive growth.
Continued recovery in the food service channel led by QSRs, also supported our strong results. Overall, we saw our volume recovery in the second half from the pandemic lows to finish the fiscal year only slightly down. We are taking several deliberate actions by segment to improve our volumes including investing behind capacities, brands, and product innovation, and our team members. Our investments in team members include our successful vaccination mandate as well as automation and technology initiatives that I'll discuss in a moment. The construction of the 12 new plants that we've mentioned previously are progressing well, and once complete, will enable Tyson to address capacity constraints and growing global demand for protein. These new capacities include 9 chicken plants, 2 case-ready beef and pork plants, and 1 new bacon plant. In parallel to our actions to improve volume, we have also worked to recover inflation through pricing, achieving a 13 % price improvement for the fiscal year and a 24 % increase for the fourth quarter.
In this dynamic environment, we will be aggressive in monitoring inflation and driving price recovery activities. And the diversity of our portfolio showed its value again this quarter as demonstrated by earnings...