Donnie. Thanks,
detail our for review let’s can financial performance summary the we then deeper the total company dive First, a segments. into individual of
year-over-year up were sales cost elevated both and first management growth our benefiting volume to stated, offset of increases Donnie revenue the in inflationary from for disciplined quarter, As goods.
Foods. by Looking $XXX at sales improvement retail of led line top our channel, Chicken drove by Prepared and million results
by in channels. other was million, beef increased industrial channel slight $XXX sales led and to foodservice and by and and Our decreases chicken the sales this by offset international
year adjusted As earnings an ago, share million. year of operating income prior adjusted the lower This given the record in expected, a of translated to per beef of delivered $XXX strength we $X.XX.
operating the Foods grew but to Now, prior income chicken, underperformance in compared lower the $XXX turning pork income operating to and quarter, in adjusted led to bridge, Prepared earnings we beef significantly the year. million
due driven of pricing more a value-added derivative While sold remainder impacts $XXX to by chain and higher million, labor input higher The primarily inflationary and $X.X costs. unfavorable by an material pound led About improvement cost supply was was producing of two-thirds raw mix, billion. per increased increase shift impact. to costs on of actions goods to costs this
our to restructuring, X.X% growth brands. of spend SG&A percentage to support of impact from to investing a sales year future of the as Excluding our in the expenses down X.X% prior the across we while as fiscal eliminate was business continue non-value-added
program continues play in of productivity Our our to profile. a long-term the improvement margin role critical
domestic the more demand prior operating margin was tighten. Live for Now gains with down as prices Net-net, softer quarter than to sales for staffing billion, for remained Beef to higher were supported record in million X.X% saw $XXX costs as was approximately at million cattle of compared margin but continue increased numbers by high quarter were segment, decline. in for X.X% income X.X% the the cattle $X.X year. to first improved while price to herd results. down the X.X% strong year’s previous supplies beef Beef. cattle record We continue $XXX sales Volume the an beef segment operating off the higher average quarter historical of Starting XX%. throughput, individual the in to segment sales due of
cutout customer beef monitor premium during case-ready a balance value of margin growth our We demand pushing in the will branded volume and period supply compression with continue and products. to while
remains the that demand, to specifically operating pyramid. environment is for This higher believe well reasons growing Asia, as opportunities quality drop to investment supported provide a our products beef in long-term Although the credit the shift have in as beef, challenging, near-term up supplier outlook relationships strategic value outlook and we in strengthening our global beef. by our
continues the Now, prior the demand the cutout to by segment. year. offset affected $X.X historical the demand prices driven impacted were billion by products of decreases high products were quarter, by for in at X.X%, gains pork specialty being International despite sales down mostly price X.X%. volume for for Pork X% look value to record Average while let’s strong of domestic the be higher U.S. dollar, U.S. is by retail approximately high the norms. realigning Sales
However, we demand these factors are will normalize, improve. optimistic that when
higher fiscal costs. herd see year navigates expect health industry input the producer in continued and challenges the We to supply as issues
the as incurred expenses, lean year. prior we On greater over costs approximately increased hog cost $XX million
quarter, impact derivative We million year. Segment the an income $XX experienced the operating loss unfavorable a from profit also a down was of expected $XXX in million. lower than year-over-year of of for $XX prior at million
especially U.S. business. a forward, with the opportunity As the products shift credit be strength pork our up margins normalization of over we dollar should and and demand, value the into drop future to move supported time strengthening additional aiding case-ready pork export pyramid, the
at are a in Now, results. strategic uptick gain gains the quarter. to year. Chicken to was compared utilization of to prior the first sales mix X.X% $X.X from and let’s products X.X% maximize X.X% pricing prior optimal and record year pursue up move with billion, segment’s increase an The to the on attributable were strategy Sales combination Volume a quarter high capacity to in customers. and choices a due our volume
back poultry availability, chicken factors of half pegged improved while of were than total this the to Our XXXX in and chicken our prices. expected. pricing in support and heightened related providing combination improvement to commodity in supply as for We chicken anticipate beef protein that change results driven does market The factors normalizes, influence availability lower weakness not a these We demand fall easing protein harvest notably mostly strategy. by lessened in prices, our beef. prices seasonal chicken and the total
which XX Based week million and conditions on to fixed to to volume our grow the gain production placement industry we supply head term. year, share. in intermediate optimistic our USDA should cost domestic on fiscal us our during leverage, are current We improve market this intend data, grow forward-looking per enable
the products, in of mix Operating $XXX to network plant optimizing continue which the an segment, quarter. growing high by our by costs approximately impacted and in of profitability feed demand. unfavorable $XX derivative million quarter our remain negatively our Chicken income of $XX Chicken and million. value-added million year-over-year maximize Net-net, particularly higher first our of will of income in We ingredient portfolio portfolio segment impact operating was the delivered
value-added with segment margin optimistic the do performance our work our and as we attain it We achieved of leading see long-term operating the volatility, improvement our industry lower significant brand to our our room capacity, Chicken is diversified still the be can portfolio there to in loyalty following: optimization to margin due for are awareness to taking automation. program data, advantage value-added consumer strength growth Nielsen last, of products, further a portfolio shifting by we and our productivity with and existing brand as implementation commodity from according strategy, highest of ramp more up to of
in for the segment, X.X% Last, we had customers retail, billion year. foodservice. both were growth gains and turn I up brands, inflation. to notably Volume by want this quarter solid by and support was In of the fulfillment decreased This strength recovering aimed revenue Foods volume. our was with to $X.X Prepared driven approximately strong despite in continued increased improved volumes prior our at driven record pricing business. for a quarter, and Dean Jimmy a Revenue customer first compared X.X% in to
sequential of X.X%. year-over-year we our was quarter pricing quarter with and This volume portfolio saw of significant of power our increase a growth third
Driven segment productivity operating operating the XX.X% prior by and The year. up $XXX income of quarter. line margin we was for X% from top in growth savings, delivered million of the
very drive segment of with Tyson Prepared performance critical meat Chicken by quarter products. Foods, commodity the as of this and Beef, profitable valuing this growth are Pork We to is for in pleased
due to We for continue the outlook this the to be optimistic following. of segment
occasions Our diversified portfolio eating meal occasions in meets all across consumers and channels. sales snacking
in grow with household competition our market further to outperforming room are We retail penetration.
has broadening by to our customer opportunity regaining grow Our and base. customers foodservice portfolio lost comprehensive
into and offerings, attractive our acquire of of expand growth addition additional existing the And have plant innovate, to operational approach new spaces new products, M&A. in an we disciplined finally, implementation opportunity various initiatives. efficiencies increasing We the have to productivity got by to and utilization through to our unlock
capital objectives, our cash for the financial and to returning commitment our at and time. strength, investing a decade. position. the sheet. operating balance shareholders X.Xx the organically about returns generate of strategy. sound our quarter net target on quarter into and growth financial EBITDA, in XX% capacity flows in return invested primarily quarter allocation first over invested to the talk is automation our to we projected our to and capital to finished capitalize adjusted business, at inorganically, leverage in $XXX produced our ratio million debt Building next both Focused cash business of priorities turning new demonstrating demand Now, to over the $XXX remain We on above nearly business on million or expected Investment our the
to allocation capital first in by growth we that Then productivity will investing disciplined in fit M&A priorities are Our existing existing portfolio. invest opportunities our in with our well approach and employ footprint. a
each Next, cash our we on Notably, as grow XXXX annual remain support since returning dividends increases repurchases. year evidenced through shareholders share dividend its focused since and the continue shareholders and payment will fiscal and for to XXXX. to we continuous by
share Our for assessing in to the approach cash dividends At to $XXX be a balance and managing million for Tyson, shareholders $XXX in sheet. million inorganic shareholders in utilize entering returned million repurchases. dilution through while invest we factors. to to and buybacks returned of quarter approach organic cash the both share for nearly market capital we and business in will $XXX continue a and to when multiple our maintaining growth opportunistically disciplined allocation robust We
outlook. turn fiscal to let’s financial XXXX the Now,
for X% year. X% billion, a Beef the million long-term. maintaining of by margins We $XX expect implies X% to sales sales of Supported range future growth in company factors which to segment detailed in to the the earlier, guidance normalized are X% a be total $XX to we our
this on expect X% we However, current dynamics, perform market now and X% fiscal to year. based between
quarter, X%. for the of the between result we for expect in year lowering to we the be back of pork the to are to pork our in guidance the and Counter segment, margin seasonality X% first normal outperform the Given the year first half year. half
normal at momentum committed X% margin we strong in margins expected and performance in and and be Prepared growing anticipate protein full ramping Foods the seasonality poultry now as this quarter revenue our X%, see XX%. in from growth growth year business, improved year historically is above X% quarter year-over-year, a consumption we internationally, volume but by volume range. through for this be XXXX, performance For the representing sales to up. the first gaining international, are segment to expect fastest-growing had year a between our and new our between we fiscal and fourth exiting world. maintaining full margin facilities and continue In the business markets driven the We to we profitability remain to
billion. the of year $X.X unchanged approximately Our is CapEx the expectation for for remainder at
Our to productivity million remain at savings for $XXX million. expectations $XXX unchanged
our Our net at XX%, net are now be net interest providing $XXX and respectively. expense be and around below managing additional of and inorganic long-term, to and adjusted remain return committed tax shareholders. to million optionality debt to the our over rate or We to EBITDA for rating leverage expected investment-grade ratio to Xx investment cash
In are than for long-term. optimistic the had slower year expected, of summary, we the fiscal on the but outlook a remainder and start
our revenue demand for therefore, to portfolio in to results. stronger in as in Overall, great continue volume, We for We asset be company strong the the and a some investment half needed to desirable brands challenges, growing some footprint financial to our and seasonality factors, compared the productivity persistent existing market we second the team, and the provide expected the expecting shareholders. meaningfully and some we and we’re support first diversity differentiated of income to influencing support quarter year. operating a marketplace. see total our half our And position products, our second win business grow of in our operational of have continued footprint, remain the year returns strong
Sean to Q&A over back call the turn for I’ll that, all with So instructions.
