Covid-19 costs Tyson millions, but beef performs well
Meat and tanning group Tyson has reported sales revenues of almost $10.5 billion for the first quarter of its current business year, the three months ending January 2, 2021. Compared to adjusted figures it has reported for the same quarter a year earlier, this represents a fall of 4.4%.
The group explained that covid-19 had led to expenses of $120 million in the quarter just ended. This money included costs associated with worker health such as personal protection equipment, sanitisation, covid-19 testing, donations, product downgrades, rendered product and “certain professional fees”. It said this was partially offset by US government stimulus packages.
Tyson said it had not reflected in its results other indirect costs associated with covid-19, including premiums paid to cattle producers and pricing discounts.
Its beef business registered an increase in sales revenues, bringing in just under $4 billion, 5.6% more than in the same quarter a year ago. Its operating income from beef reached $528 million, a rise of 13.2% year on year.
It said beef sales volumes had increased primarily because of strong domestic and export demand. The comparison also reflects the ongoing effects in the first quarter of last year of the fire at its plant at Holcomb, Kansas, in August 2019.
