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UPDATE 1-Tyson Foods beats sales estimates on higher chicken demand

05/10/2021 07:43
UPDATE 1-Tyson Foods beats sales estimates on higher chicken demand

Adds background, profit

- Tyson Foods Inc TSN.N beat second-quarter revenue estimates on Monday, as the largest U.S. meat processor benefited from strong demand for its chicken products from reopened restaurants and hotels across the country.

U.S. meat producers have seen sales volumes recover on strong demand from restaurant chains after an easing of pandemic-led restrictions on dining out, as well as from food retail chains as people are cooking more at home.

Tyson and its peers, including Hormel Foods Corp HRL.N and Pilgrims Pride Corp PPC.O, have also benefited from a boom in pork demand overseas, especially from China and some Southeast Asian countries, due to African swine fever outbreaks in several markets.

Tyson Foods' second-quarter sales rose 3.78% to $11.30 billion from a year earlier. Analysts on average were expecting sales of $11.19 billion, according to IBES data from Refinitiv.

Net income attributable to Tyson increased to $476 million, or $1.30 per share, in the three months ended April 3, from $376 million, or $1.03 per share, a year earlier.

(Reporting by Praveen Paramasivam in Bengaluru and Tom Polansek in Chicago; Editing by Shounak Dasgupta and Shinjini Ganguli)

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