Tyson Foods 2015 Annual Report Download - page 31
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Please find page 31 of the 2015 Tyson Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Prepared Foods Segment Results
inmillions
2015
2014
Change2015
vs.2014
2013
Change2014
vs.2013
Sales $ 7,822
$ 3,927
$ 3,895
$ 3,322
$ 605
SalesVolumeChange
70.7%
10.4%
AverageSalesPriceChange
16.7%
7.1%
OperatingIncome(Loss) $ 588
$ (60)
$ 648
$ 101
$ (161)
OperatingMargin 7.5%
(1.5)%
3.0%
2015 vs. 2014 –
•Sales Volume –SalesvolumeincreasedduetoincrementalvolumesfromtheacquisitionofHillshireBrandsandanadditionalweekinfiscal2015.
• Average Sales Price –AveragesalespriceincreasedprimarilyduetobetterproductmixwhichwaspositivelyimpactedbytheacquisitionofHillshire
Brands.
•Operating Income –OperatingincomeimprovedduetoanincreaseinsalesvolumeandaveragesalespricemainlyattributedtoHillshireBrands,aswell
aslowerrawmaterialcostsofapproximately$290millionforfiscal2015relatedtoourlegacyPreparedFoodsbusiness.Profitimprovementinitiativesand
HillshireBrandssynergiespositivelyimpactedPreparedFoodsoperatingincomeby$285millionforfiscal2015.Additionally,inthefourthquarterof
fiscal2015,weincurred$59millioninimpairmentchargesassociatedwithoptimizingourPreparedFoodsnetwork.
2014 vs. 2013 –
• Sales Volume –SalesvolumeincreasedasaresultofimproveddemandforourPreparedFoodsproductsandincrementalvolumesasaresultofthe
acquisitionofHillshireBrandsinourfinalmonthoffiscal2014.
• Average Sales Price –Averagesalespriceincreasedduetopriceincreasesassociatedwithhigherinputcostsalongwithbetterproductmixwhichwas
positivelyimpactedincrementallybytheacquisitionofHillshireBrandsinourfinalmonthoffiscal2014.
• Operating Income –Operatingincomedecreasedasaresultofhigherrawmaterialandotherinputcostsofapproximately$210million.Becausemanyof
oursalescontractsareformulabasedorshorter-terminnature,wearetypicallyabletooffsetrisinginputcoststhroughpricing.However,thereisalag
timeforpriceincreasestotakeeffect.Additionally,operatingincomewasreducedby$113millionduetoadditionalcostsassociatedwiththePrepared
Foodsimprovementplan,HillshireBrandspost-closingresults,purchasepriceaccountingadjustmentsandongoingcostsrelatedtoalegacyHillshire
Brandsplantfire.
Other Results
inmillions
2015
2014
Change2015
vs.2014
2013
Change2014
vs.2013
Sales $ 879
$ 1,381
$ (502)
$ 1,370
$ 11
OperatingLoss (99)
(195)
96
(37)
(158)
2015 vs. 2014 –
•Sales –SalesdecreasedduetothesaleoftheMexicoandBrazilchickenproductionoperationsinfiscal2015.
• Operating loss –Operatinglossimproved$69millionfromourinternationaloperationsduetothesaleofourBraziloperationandbettermarket
conditionsinMexico(priortoitssaleinthefourthquarteroffiscal2015),partiallyoffsetbychallengingmarketconditionsinChina.Additionally,third-
partymergerandintegrationcostsdecreasedby$12millionandlossesassociatedwithDynamicFuels,whichwassoldinfiscal2014,decreased$15
million.
2014 vs. 2013 –
• Operating loss –Operatinglossincreased$84millionfromourinternationaloperationsduetopooroperationalexecutioninBrazil,chargesof$42
millionforanimpairmentofBrazilassetsandothercostsrelatedtothesaleoftheBraziloperation,challengingmarketconditionsinBrazilandChinaand
additionalcostsincurredaswegrewourinternationaloperation.Additionally,third-partymergerandintegrationcostsincreased$59millioninfiscal2014
andlossesassociatedwithDynamicFuels,whichwassoldinfiscal2014,increasedby$15million.
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