Tyson Foods Inc (TSN) has reported a 51.55 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $391 million, or $1.03 a share in the quarter, compared with $258 million, or $0.63 a share for the same period last year. On an adjusted basis, earnings per share were at $0.96 for the quarter compared with $0.83 in the same period last year.
Revenue during the quarter dropped 12.85 percent to $9,156 million from $10,506 million in the previous year period. Gross margin for the quarter expanded 251 basis points over the previous year period to 11.89 percent. Total expenses were 93.60 percent of quarterly revenues, down from 94.76 percent for the same period last year. This has led to an improvement of 117 basis points in operating margin to 6.40 percent.
Operating income for the quarter was $586 million, compared with $550 million in the previous year period.
“Fiscal 2016 was our fourth consecutive year of record results,” said Donnie Smith, chief executive officer of Tyson Foods. “We produced record earnings per share, operating income and operating margin.
Operating cash flow improves
Tyson Foods Inc has generated cash of $2,716 million from operating activities during the year, up 5.68 percent or $146 million, when compared with the last year.
The company has spent $684 million cash to meet investing activities during the year as against cash outgo of $270 million in the last year.
The company has spent $2,377 million cash to carry out financing activities during the year as against cash outgo of $2,035 million in the last year period.
Cash and cash equivalents stood at $349 million as on Oct. 01, 2016, down 49.27 percent or $339 million from $688 million on Oct. 03, 2015.
Working capital increases
Tyson Foods Inc has recorded an increase in the working capital over the last year. It stood at $2,126 million as at Oct. 01, 2016, up 15.17 percent or $280 million from $1,846 million on Oct. 03, 2015. Current ratio was at 1.77 as on Oct. 01, 2016, up from 1.52 on Oct. 03, 2015.
Debt comes down
Tyson Foods Inc has recorded a decline in total debt over the last one year. It stood at $6,279 million as on Oct. 01, 2016, down 6.14 percent or $411 million from $6,690 million on Oct. 03, 2015. Total debt was 28.07 percent of total assets as on Oct. 01, 2016, compared with 29.08 percent on Oct. 03, 2015. Debt to equity ratio was at 0.65 as on Oct. 01, 2016, down from 0.69 as on Oct. 03, 2015. Interest coverage ratio improved to 10.10 for the quarter from 7.64 for the same period last year.
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