Tyson Foods Inc. executives told investors at the Barclays Global Consumer Staples Conference last week that the company is aiming for single-digit growth in fiscal 2017.
The publicly traded meat processor (NYSE: TSN) said it plans to use the proceeds to invest in its beef, chicken and pork businesses through organic growth or acquisitions.
"As stated on our last earnings call, our adjusted earnings guidance for fiscal 2016 of $4.40-4.50 per share is 40 percent more than last year and represents a four-year compound annual growth rate of approximately 22 percent, and we're confident we can achieve high single-digit growth in fiscal 2017," Tyson CEO Donnie Smith said in a news release.
The company also said its "Core 9" product lines — which include brands called Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells and State Fair — are "growing and gaining momentum."
"We continue to outpace retail food and beverage," Tyson Foods President Tom Hayes said. "Tyson Core 9 is leading in volume performance among the top 10 consumer packaged goods retail food manufacturers, and Tyson Foods is one of only three companies to show growth in the latest quarter. We're growing sales volume, sales dollar sales and market share."
Tyson acquired many of the brands through the $8.5 billion acquisition of Hillshire Brands of Chicago in 2014.
Smith touted Tyson Foods' return to shareholders, saying the company increased dividends and share repurchases totaling 31 million shares in the previous 12 months through Aug. 8. But he also said the firm would reinvest in the company, including through acquisitions.
"Beyond dividends and share buybacks, we'll use our substantial cash flows to invest in our business or make strategic acquisitions," Smith said.
Hayes also told investors that the company's financials have also been bolstered by an effort to trim $1 billion in inefficiencies, according to Global Meat News.
In August, Tyson Foods reported third-quarter net income of $484 million, up 41 percent from the same quarter last year, and raised estimates for the fiscal year amid strong performance across its divisions:
The company raised its full-year earnings per share guidance to $4.47 to $4.57, with sales of about $37 billion. For fiscal 2017, the company expects sales to rise 1 percent as volume increases.
"We expect our high-level performance to continue and are raising full year fiscal 2016 earnings guidance," Smith said. "Following record earnings this year, we intend to build on our momentum to generate more growth in fiscal 2017."
The company also said then that it would launch Tyson Naturals, a new value-added chicken line, later that month, and that it planned to open an e-commerce division in the fall.