Tyson Foods raises prices in North America

Tyson Foods Inc. cannot hike chicken and ready-made meal prices fast enough to keep pace with rising costs of raw materials like grains, Chief Executive Donnie King said Monday after the company reported an unexpectedly high quarterly profit. The meat company raised its sales forecast for 2021 on the back of strong beef demand as steaks and burgers sales in U.S. restaurants and hotels rebounded following the easing of COVID-19 restrictions. Beef exports from the USA are also robust. However, costs also rise, which could have a negative impact on future earnings. Tyson has raised prices for restaurant customers to offset inflation and plans to hike retail prices on Sept. 5, King said on a conference call with analysts. Further increases are planned, he said. "Costs hit us faster than we can adjust prices," said King. Branded and value-added products are particularly hard hit by inflation, which hit 14% in the quarter ended July 3, he said. "We have seen unprecedented and accelerating inflation and we are trying to keep up with it," King told reporters. Tyson raised the average pork price 39.3% last quarter, while beef and chicken prices rose 11.6% and 15.6%, respectively. Sales volumes also increased. Total quarterly revenue climbed to $ 12.48 billion from $ 10.02 billion a year ago, beating analysts' estimates of $ 11.49 billion. Tyson-attributable net income increased from $ 1.44 a year ago to $ 2.05 per share. On an adjusted basis, Tyson made $ 2.70 per share, beating estimates of $ 1.62, according to Refinitiv's IBES data. Hot dog maker Jimmy Dean expects total sales for fiscal 2021 to be around $ 46 billion to $ 47 billion, compared to an earlier forecast of $ 44 billion to $ 46 billion. The company, which requires COVID-19 vaccinations for its employees in the United States, said it had become more difficult to find employees due to rising coronavirus cases. "We were on the right track and then the Delta variant came along," said King.