Tyson Foods 2013 Annual Report Download - page 20

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20
SUMMARY OF RESULTS
Sales in millions
2013 2012 2011
Sales $ 34,374 $ 33,055 $ 32,032
Change in sales volume (0.2)% (4.3)%
Change in average sales price 4.6 % 7.8 %
Sales growth 4.0 % 3.2 %
2013 vs. 2012 –
• Sales Volume – Sales were negatively impacted by a slight decrease in sales volume, which accounted for a decrease of $255
million. This was primarily due to decreases in the Beef and Pork segments, partially offset by increases in the Chicken and
Prepared Foods segments.
• Average Sales Price – Sales were positively impacted by higher average sales prices, which accounted for an increase of
approximately $1.6 billion. All segments experienced increased average sales prices, largely due to continued tight domestic
availability of protein, increased pricing associated with rising live and raw material costs, and improved mix. The majority of
the increase was driven by the Chicken and Beef segments.
2012 vs. 2011 –
• Sales Volume – Sales were negatively impacted by a decrease in sales volume, which accounted for a decrease of $1.7 billion.
All segments, with the exception of the Pork segment, had a decrease in sales volume, with the majority of the decrease in the
Beef segment.
• Average Sales Price – The increase in sales was largely due to an increase in average sales prices, which accounted for an
increase of approximately $2.7 billion. All segments, with the exception of the Pork segment, had an increase in average sales
prices largely due to continued tight domestic availability of protein and increased live and raw material costs. These increases
were partially offset by a decrease in average sales price in the Pork segment which was driven down by lower live hog costs.
Cost of Sales in millions
2013 2012 2011
Cost of sales $ 32,016 $ 30,865 $ 29,837
Gross profit 2,358 2,190 2,195
Cost of sales as a percentage of sales 93.1% 93.4% 93.1%
2013 vs. 2012 –
• Cost of sales increased by approximately $1.2 billion due to higher input cost per pound.
• The $1.2 billion impact of higher input costs was primarily driven by:
• Increase in feed costs of $470 million in our Chicken segment.
• Increase in live cattle and hog costs of approximately $395 million.
• Increase in raw material and other input costs in our Prepared Foods segment of approximately $110 million.
• Increase due to net losses of $15 million in fiscal 2013, compared to net gains of approximately $66 million in fiscal
2012, from our Pork segment commodity risk management activities. These amounts exclude the impact from related
physical purchase transactions, which impact future period operating results.
2012 vs. 2011 –
• Cost of sales increased by approximately $1.0 billion. Higher input cost per pound increased cost of sales by approximately
$2.2 billion, while lower sales volume decreased cost of sales $1.2 billion.
• The $2.2 billion impact of higher input costs per pound was primarily driven by:
• Increase in live cattle and hog costs of approximately $1.5 billion.
• Increase in feed costs of $320 million and increase in other growout operating costs of $50 million in our Chicken
segment.
• The $1.2 billion impact of lower sales volumes was driven by decreases in our Chicken, Beef and Prepared Foods
segments, partially offset by an increase in sales volume in our Pork segment.