泰森食品 (TSN) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Tyson Foods Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Sean Cornett, Vice President, Investor Relations. Sir, please go ahead.

早上好，歡迎來到泰森食品公司 2023 年第二季度收益電話會議。 （操作員說明）另請注意，今天的活動正在錄製中。此時，我想將電話會議轉交給投資者關係副總裁 Sean Cornett。先生，請繼續。

Good morning, and welcome to Tyson Foods' Fiscal Second Quarter 2023 Earnings Conference Call and Webcast. Prepared remarks today will be provided by Donnie King, President and Chief Executive Officer; and John R. Tyson, Executive Vice President and Chief Financial Officer. Additionally, Brady Stewart, Group President, Fresh Meat; Stewart Glendinning, Group President, Prepared Foods; Wes Morris, Group President, Poultry; and Amy Tu, President, International and Chief Administrative Officer, will join the live Q&A session.

早上好，歡迎來到泰森食品公司 2023 財年第二季度收益電話會議和網絡直播。總裁兼首席執行官 Donnie King 將在今天發表準備好的講話；執行副總裁兼首席財務官 John R. Tyson。此外，鮮肉集團總裁 Brady Stewart； Stewart Glendinning，預製食品集團總裁；家禽業務集團總裁 Wes Morris；國際總裁兼首席行政官 Amy Tu 將參加現場問答環節。

We have prepared presentation slides to supplement our comments, which are available on the Investor Relations section of the Tyson website and through the link on our webcast.

我們準備了演示幻燈片來補充我們的評論，這些幻燈片可在泰森網站的投資者關係部分和我們的網絡廣播上的鏈接中獲得。

During today's call, we will make forward-looking statements regarding our expectations for the future. These forward-looking statements made during this call are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all comments reflecting our expectations, assumptions or beliefs about future events or performance that do not relate solely to historical periods. These forward-looking statements are subject to certain risks, uncertainties and assumptions, which may cause actual results to differ materially from our current projections. Please refer to our forward-looking statements disclaimer on Slide 2 as well as our SEC filings for additional information concerning risk factors that could cause our actual results to differ materially from our projections. We assume no obligation to update any forward-looking statements.

在今天的電話會議上，我們將就我們對未來的期望發表前瞻性陳述。本次電話會議期間作出的這些前瞻性陳述是根據 1995 年《私人證券訴訟改革法案》的安全港條款提供的。前瞻性陳述包括反映我們對未來事件或業績的預期、假設或信念的所有評論，這些評論與未來事件或業績無關僅適用於歷史時期。這些前瞻性陳述受某些風險、不確定性和假設的影響，可能導致實際結果與我們目前的預測存在重大差異。請參閱我們在幻燈片 2 上的前瞻性聲明免責聲明以及我們向美國證券交易委員會提交的文件，了解有關可能導致我們的實際結果與我們的預測存在重大差異的風險因素的更多信息。我們不承擔更新任何前瞻性陳述的義務。

Please note that references to earnings per share, operating income and operating margin in our remarks are on an adjusted basis unless otherwise noted. For reconciliations of these non-GAAP measures to their corresponding GAAP measures, please refer to our earnings press release. Now I'll turn the call over to Donnie.

請注意，除非另有說明，否則我們評論中提及的每股收益、營業收入和營業利潤率均經過調整。有關這些非 GAAP 措施與其相應的 GAAP 措施的調節，請參閱我們的收益新聞稿。現在我會把電話轉給唐尼。

Thanks, Sean, and thank you to everyone for joining us this morning. Last quarter, we said that we expected Q2 to be tougher than Q1, and this quarter was definitely a tough one. As you will have seen in our release earlier this morning, results were weaker than expected and top line performance was mixed, particularly when compared to our strong performance last year.

謝謝肖恩，感謝大家今天早上加入我們。上個季度，我們說我們預計第二季度會比第一季度更艱難，這個季度肯定是艱難的。正如您在今天早上早些時候發布的新聞稿中看到的那樣，結果弱於預期，收入表現參差不齊，尤其是與我們去年的強勁表現相比。

At the same time, we outperformed our large branded-food peers in volume and dollar sales and continue to gain pound and dollar share in our retail core business lines.

與此同時，我們在數量和美元銷售額方面優於我們的大型品牌食品同行，並繼續在我們的零售核心業務線中獲得英鎊和美元份額。

As I also said last quarter, I can't remember a time when our business faced the highly unusual situation that we're currently seeing, where all 3 of our core protein categories, Beef, Pork and Chicken are experiencing market challenges at the same time. This unusual confluence of issues continued in Q2 and directly impacted our results. I know that you watch the protein markets closely, and like us, know that there are many factors at play here that are macro in nature.

正如我在上個季度所說的那樣，我不記得我們的業務何時面臨我們目前看到的極不尋常的情況，我們的所有 3 種核心蛋白質類別，牛肉、豬肉和雞肉都同時面臨市場挑戰時間。這種不尋常的問題匯合在第二季度繼續存在，並直接影響了我們的結果。我知道您密切關注蛋白質市場，並且像我們一樣知道這裡有許多宏觀因素在起作用。

For example, Beef is cycling out of historically strong margins that were seen throughout most of fiscal 2021 and '22. Cutout values across protein complex are much lower than a year ago. Inflation has also remained elevated and persistent, which has dramatically impacted our cost.

例如，牛肉正在擺脫 2021 財年和 22 財年大部分時間都出現的歷史上強勁的利潤率。蛋白質複合物的切割值比一年前低得多。通貨膨脹也一直居高不下並持續存在，這極大地影響了我們的成本。

The current macro backdrop is clearly tough. We have a strong growth strategy and are bullish on our long-term outlook. We continue to implement our strategy, focus on the things that we can control and build upon the strong foundation we have in place.

當前的宏觀背景顯然很艱難。我們擁有強大的增長戰略，並且看好我們的長期前景。我們繼續實施我們的戰略，專注於我們可以控制的事情，並在我們現有的堅實基礎上繼續發展。

Late last month, we announced important initiatives to simplify our structure and rightsize our team. These are a logical next step in our ongoing efforts to drive operational and functional excellence as we strive to be best-in-class in our industry. Last quarter, we talked about executional issues that we needed to improve and operational performance did get better. We set a high bar to execute with excellence and are making progress.

上個月末，我們宣布了簡化結構和調整團隊規模的重要舉措。在我們努力成為業內一流的過程中，這些是我們不斷努力推動卓越運營和功能的合乎邏輯的下一步。上個季度，我們討論了需要改進的執行問題，運營績效確實有所改善。我們為卓越執行設定了高標準，並且正在取得進展。

Despite our overall results, there were strong positive highlights in the quarter that serve as proof points that our strategy is working. As you know, our branded foods business is the key growth pillar for the future, and in Q2, the business performed well. These results were driven by the strength of our share position, especially for our core brands, including Jimmy Dean, Tyson and Hillshire Farm, which helped deliver strong margins compared to the same 13-week period last year.

儘管我們取得了總體業績，但本季度仍有一些積極的亮點可以證明我們的戰略正在發揮作用。如您所知，我們的品牌食品業務是未來的主要增長支柱，在第二季度，該業務表現良好。這些結果是由我們的份額優勢推動的，特別是我們的核心品牌，包括 Jimmy Dean、Tyson 和 Hillshire Farm，與去年同期的 13 週相比，這有助於實現強勁的利潤率。

We continue to grow both pound and dollar share and to outperform our large food peers in volume based on Nielsen data. It's clear we are winning with consumers. We also continue to win with our customers. We're proud to have been moved up into the top 10 for the first time ever in the most recent Kantar power rankings. In fact, Tyson finished in the top 10 in 6 of the 9 categories they measure. As we continue to focus on meeting customer needs and planning the future together with them.

根據尼爾森數據，我們繼續增加英鎊和美元的份額，並在數量上超過我們的大型食品同行。很明顯，我們贏得了消費者的青睞。我們也繼續與客戶共贏。我們很自豪能夠在最近的 Kantar 權力排名中首次進入前 10 名。事實上，泰森在他們衡量的 9 個類別中有 6 個進入前 10 名。隨著我們繼續專注於滿足客戶需求並與他們一起規劃未來。

While strong performance continued in our branded foods business, I know that our results in Chicken are top of mind for many of you. So I want to spend a few minutes walking through our Chicken business in detail. I want to point you to 3 important things on the macro environment.

雖然我們的品牌食品業務繼續保持強勁表現，但我知道我們在雞肉方面的業績對你們中的許多人來說是最重要的。所以我想花幾分鐘詳細介紹一下我們的雞肉業務。我想向您指出有關宏觀環境的 3 件重要事情。

First, marketing conditions remain very challenging. Commodity prices for most fresh chicken cuts are much lower than last year, with boneless breast meat, tenders and wings down more than 50%. While we're not fully exposed to commodity markets, we are not immune to their dynamics. Some might expect these dynamics to impact our results immediately. But in fact, they work through on a lag. As chicken commodity prices declined in Q1, the impact continued into our Q2, while price increases we saw during the quarter are expected to affect Q3. Second, input costs were higher compared to last year as our feed, ingredient cost increased $145 million. We also realized an unfavorable year-over-year derivative impact of approximately $135 million due to volatility in commodity grain prices. Third, while high-path avian influenza has not had a significant impact on our live operations, key export markets remain closed.

首先，營銷條件仍然非常具有挑戰性。大多數鮮切雞的商品價格比去年低得多，無骨胸肉、嫩肉和雞翅的價格下降了 50% 以上。雖然我們沒有完全接觸商品市場，但我們也不能倖免於它們的動態。有些人可能期望這些動態會立即影響我們的結果。但實際上，他們的工作是滯後的。由於第一季度雞肉商品價格下跌，影響持續到我們的第二季度，而我們在本季度看到的價格上漲預計將影響第三季度。其次，投入成本比去年更高，因為我們的飼料、原料成本增加了 1.45 億美元。由於商品穀物價格的波動，我們還實現了約 1.35 億美元的同比衍生品不利影響。第三，雖然高途徑禽流感並未對我們的現場運營產生重大影響，但主要出口市場仍處於關閉狀態。

While we can't control markets, we are focused on the things we can control. We made a series of strategic decisions to better position us for the future. For example, we converted 2 of our plants from bone-in to boneless, specifically to add new business and to continue growing with an important customer. We further rationalized assets, SKUs and inventory. In fact, we reduced our finished inventory pounds by nearly 20% during the quarter. We also made the difficult choice earlier this quarter to close 2 of our less productive chicken plants. These strategic actions are expected to generate significant efficiencies going forward, although some of them generate incremental cost in our current results.

雖然我們無法控制市場，但我們專注於我們可以控制的事情。我們做出了一系列戰略決策，以更好地為未來做好準備。例如，我們將我們的 2 家植物從帶骨轉變為去骨，特別是為了增加新業務並繼續與重要客戶一起成長。我們進一步合理化資產、SKU 和庫存。事實上，我們在本季度將成品庫存磅數減少了近 20%。本季度早些時候，我們還做出了艱難的選擇，關閉了 2 家生產力較低的養雞場。這些戰略行動有望在未來產生顯著的效率，儘管其中一些會在我們當前的結果中產生增量成本。

Despite challenging market conditions, we continue to execute our strategy and have significant opportunities in front of us. We increased our internal production, gaining 130 basis points of harvest share compared to last year. This led to pound share gains of 250 basis points in value-added retail and 60 basis points in food service. As you can see, we are well positioned to keep growing. We continue to invest in automation and digital capabilities with opportunities to improve our yield. We now have 50 debone lines that are fully automated. We have room to optimize our cost structure and a portion of the actions we took last month are focused on this.

儘管市場條件充滿挑戰，但我們繼續執行我們的戰略，並在我們面前擁有重要的機會。我們增加了內部產量，與去年相比收穫份額增加了 130 個基點。這導致增值零售的英鎊份額上漲 250 個基點，餐飲服務的英鎊份額上漲 60 個基點。如您所見，我們已準備好繼續發展。我們繼續投資於自動化和數字功能，以提高我們的產量。我們現在擁有 50 條完全自動化的去骨線。我們有優化成本結構的空間，我們上個月採取的部分行動就是針對這一點的。

Importantly, we are working more closely than ever with our customers to create value jointly. We're building long-term supply partnerships that have clear benefits for both sides. We improved order fill rates by more than 20%. This was no accident, and I'm proud of our team for accomplishing this. We're winning in the marketplace by winning with our customers.

重要的是，我們與客戶的合作比以往任何時候都更加緊密，共同創造價值。我們正在建立對雙方都有明顯好處的長期供應夥伴關係。我們將訂單完成率提高了 20% 以上。這絕非偶然，我為我們的團隊實現這一目標感到自豪。我們通過贏得客戶贏得市場。

Now I've given you specific details on the business, I want to step back and remind you of our overall strategy. Our approach to building and growing Chicken is based on 3 key elements: first, we strive to be the best-in-class operator by executing with excellence. This includes filling our plants to continue increasing our capacity utilization. Second, we plan to grow our value-added business focusing on fully cooked in retail and food service channels and by innovating and differentiating our offerings. And third, we expect to win with consumers behind the #1 brand in Chicken and win with our customers by being their go-to supplier.

現在我已經為您提供了有關業務的具體細節，我想退一步提醒您我們的總體戰略。我們建立和發展 Chicken 的方法基於 3 個關鍵要素：首先，我們通過卓越的執行努力成為一流的運營商。這包括填充我們的工廠以繼續提高我們的產能利用率。其次，我們計劃通過創新和差異化我們的產品來發展我們的增值業務，專注於零售和食品服務渠道的全熟食。第三，我們希望通過成為雞肉的第一品牌來贏得消費者的青睞，並通過成為他們的首選供應商贏得我們的客戶。

I want to underscore that we are focused on improving our results in Chicken. We can do that by implementing our strategy leading to continued growth and improved margins and I'm confident that we have the right leadership team in place to get us there.

我想強調的是，我們專注於改善我們在 Chicken 方面的成果。我們可以通過實施導致持續增長和提高利潤率的戰略來做到這一點，我相信我們擁有合適的領導團隊來幫助我們實現目標。

Now turning to the continued strong performance of our retail branded business. With our iconic retail brands, Tyson, Jimmy Dean, Hillshire Farm and Ball Park, Tyson core business lines continue to outpace total food and beverage and our peers in both sales dollars and volume growth, up 13% and 7%, respectively, compared to a year ago per Nielsen.

現在轉向我們零售品牌業務的持續強勁表現。憑藉我們的標誌性零售品牌 Tyson、Jimmy Dean、Hillshire Farm 和 Ball Park，Tyson 的核心業務線在銷售額和銷量增長方面繼續超過整體食品和飲料以及我們的同行，分別增長 13% 和 7%，與一年前根據尼爾森。

Our brands continue to perform well as Tyson core business lines grew pound share by 2.4 points relative to prior year quarter. We continue to show market share leadership in most of the retail categories in which we compete, delivering both dollar and pound share growth in the aggregate by more than 2 points and also across all dayparts.

我們的品牌繼續表現良好，因為泰森核心業務線的英鎊份額比去年同期增長了 2.4 個百分點。在我們參與競爭的大多數零售類別中，我們繼續保持市場份額領先地位，美元和英鎊的總份額增長超過 2 個百分點，而且在所有時段內也是如此。

As proven by our growth compared to last year, we know that consumers will spend on categories and brands they know and trust. The trajectory of our Tyson core business lines volume share growth shows the momentum we have gained with consumers. We remain focused on maintaining our improved fill rates and on-shelf availability while investing in merchandising and advertising to support our brands, which, along with our strong business fundamentals, resulted in pound share growth increasing sequentially over the past 4 quarters.

正如我們與去年相比的增長所證明的那樣，我們知道消費者會在他們了解和信任的類別和品牌上消費。我們泰森核心業務線銷量份額增長的軌跡顯示了我們在消費者中獲得的勢頭。我們仍然專注於保持我們改進的填充率和貨架可用性，同時投資於商品銷售和廣告以支持我們的品牌，這與我們強大的業務基本面一起導致過去 4 個季度的英鎊份額增長連續增長。

Tyson, Jimmy Dean, Hillshire Farm and Ball Park, all hold favorite brand status with consumers by a large margin over our nearest competitor. It is evident that we're delivering the brands and products that consumers desire. As I mentioned earlier, our move into the Kantar top 10 demonstrates that we continue to gain the confidence of our customers. Winning with customers and consumers is a key priority, and it's clear we're having success with both.

Tyson、Jimmy Dean、Hillshire Farm 和 Ball Park 都在消費者中享有最喜愛的品牌地位，遠遠超過我們最接近的競爭對手。很明顯，我們正在提供消費者想要的品牌和產品。正如我之前提到的，我們進入 Kantar 前 10 名表明我們繼續贏得客戶的信任。贏得客戶和消費者是重中之重，很明顯我們在這兩個方面都取得了成功。

Now let me tell you why I'm so optimistic about our future. Tyson is an iconic company with a broad portfolio of products and powerful brands that has been a recognized leader in protein for nearly 90 years. We've been through market cycles before. I've been through them before myself and we've always come out stronger on the other side. We have the right strategy, seasoned leadership and team members in place to do it once again. Our vision is to deliver sustainable top line growth and margin improvement. Our strategy to drive growth is built on the foundation of 3 key pillars: first, we will drive growth in our core protein platform where we harvest and process fresh meat across a diverse portfolio. We expect global demand for protein to continue to grow in the years ahead, driven by population growth and per capita income expansion. Tyson is well positioned with the capacity in place to meet demand.

現在讓我告訴你為什麼我對我們的未來如此樂觀。泰森是一家標誌性公司，擁有廣泛的產品組合和強大的品牌，近 90 年來一直是公認的蛋白質領導者。我們以前經歷過市場週期。我在自己之前經歷過它們，我們總是在另一邊變得更強大。我們擁有正確的戰略、經驗豐富的領導層和團隊成員，可以再次做到這一點。我們的願景是實現可持續的收入增長和利潤率提高。我們推動增長的戰略建立在 3 個關鍵支柱的基礎上：首先，我們將推動我們的核心蛋白質平台的增長，我們在該平台上收穫和加工新鮮肉類，涵蓋多樣化的產品組合。在人口增長和人均收入增長的推動下，我們預計未來幾年全球對蛋白質的需求將繼續增長。泰森食品處於有利地位，具備滿足需求的能力。

Second, we will drive growth through our branded food portfolio. We have over 30 prepared food and snacking brands, including some of the strongest brands in all of food, namely Tyson, Jimmy Dean and Hillshire Farm. Branded food is our best opportunity to drive faster growth, higher margins and stronger results.

其次，我們將通過我們的品牌食品組合推動增長。我們擁有 30 多個預製食品和零食品牌，其中包括所有食品中最強大的一些品牌，即 Tyson、Jimmy Dean 和 Hillshire Farm。品牌食品是我們推動更快增長、更高利潤和更強勁業績的最佳機會。

Third, we will expand internationally where it makes sense. Most of the growth in protein consumption is expected to take place outside the U.S. We can capture this significant opportunity by scaling our existing business, expanding our customer base and exploring new markets. These pillars are enabled by our relentless focus on customers and consumers, operational excellence and digital capabilities to drive margin improvement.

第三，我們將在有意義的地方進行國際擴張。預計蛋白質消費量的大部分增長將發生在美國以外。我們可以通過擴大現有業務、擴大客戶群和開拓新市場來抓住這一重要機遇。這些支柱得益於我們對客戶和消費者的不懈關注、卓越的運營和數字能力，以推動利潤率的提高。

We win with customers and consumers by building growth partnerships, delivering top-tier customer service and fill rates and product innovation. We expect to realize our operational excellence goals as we modernize our operations, driving efficiencies, saving on costs and increasing throughput. And we continue to build our digital capabilities, operating at scale with digitally enabled standard operating procedures and utilizing data, automation and AI tech for decision-making.

我們通過建立增長夥伴關係、提供一流的客戶服務和填充率以及產品創新來贏得客戶和消費者的青睞。我們期望在實現運營現代化、提高效率、節省成本和提高吞吐量的過程中實現卓越運營目標。我們繼續構建我們的數字能力，通過數字化標準操作程序進行大規模運營，並利用數據、自動化和人工智能技術進行決策。

With the combination of our growth strategies and focus on margin improvement, we can deliver the food that consumers love and create long-term value for our customers, for our team members and for our shareholders. We've put a strong proven leadership team in place here at Tyson. I've never been more confident in the talent that we have, and I know that we have the right people to capture the opportunities in front of us. Now I'll turn things over to John to discuss our financial results for the quarter in more detail.

通過結合我們的增長戰略和對提高利潤率的關注，我們可以提供消費者喜愛的食品，並為我們的客戶、我們的團隊成員和我們的股東創造長期價值。我們在 Tyson 建立了一支經過驗證的強大領導團隊。我對我們擁有的人才從未像現在這樣充滿信心，而且我知道我們擁有合適的人才來抓住我們面前的機會。現在我將把事情交給約翰更詳細地討論我們本季度的財務業績。

Thank you, Donnie. First, for a quick touch on our total company financial performance and then a review of the individual segments. Total company revenue was up slightly compared to last year's previous record Q2 performance as the benefit from significant volume growth in Chicken were offset by the reduction in price per pound in Beef and in Pork. For the total company and individually in Chicken and Prepared Foods, we continue to deliver record high sales performance now for a fifth consecutive quarter. We remain focused on driving growth in these businesses to enhance our margin profile over time.

謝謝你，唐尼。首先，快速了解我們公司的總體財務業績，然後回顧各個部門。與去年創紀錄的第二季度業績相比，公司總收入略有上升，因為雞肉銷量大幅增長的好處被牛肉和豬肉每磅價格的下降所抵消。對於整個公司和單獨的雞肉和預製食品，我們現在連續第五個季度繼續創下歷史新高的銷售業績。我們仍然專注於推動這些業務的增長，以隨著時間的推移提高我們的利潤率。

Now turning to profitability. More than 90% of the decline in adjusted operating income was driven by lower earnings in Beef and Chicken. Higher input costs per pound in all segments except Pork increased our cost of goods sold. The majority was driven by inflationary impacts on raw material and labor costs. The remainder of the increase was due to a few things: inventory value adjustments, unfavorable derivative impacts and a shift producing more value-added mix and this was partially offset by savings from our productivity program, reduced outside meat purchases in Chicken and decreased supply chain costs. Our pricing decreased led by lower cutout values in Beef and Pork. This was partially offset by volume growth in Chicken.

現在轉向盈利。調整後營業收入下降的 90% 以上是由於牛肉和雞肉收入下降所致。除豬肉外，所有部門的每磅投入成本均較高，這增加了我們的銷售成本。其中大部分是由原材料和勞動力成本的通貨膨脹影響推動的。其餘的增長是由於以下幾個因素造成的：庫存價值調整、不利的衍生品影響以及產生更多增值組合的轉變，這部分被我們的生產力計劃節省的資金、雞肉的外部肉類採購減少和供應鏈減少所抵消費用。我們的價格下降是由於牛肉和豬肉的分切價較低。這部分被雞肉的銷量增長所抵消。

Now let me go to the individual segment results, starting with Beef. Sales in our Beef segment decreased 8.3% compared to a record high sales in the second quarter of last year. Price was down 5.4% due to reduced domestic demand and softer export markets. and volume was down 2.9% due to fewer head processed. Live cattle costs increased approximately $305 million on a like-for-like volume in the quarter as the reduction in the beef cattle herd continues to tighten supply and increase competition for cattle.

現在讓我來看看各個細分市場的結果，從牛肉開始。與去年第二季度創紀錄的高銷售額相比，我們牛肉部門的銷售額下降了 8.3%。由於國內需求減少和出口市場疲軟，價格下跌了 5.4%。由於加工的頭部減少，銷量下降了 2.9%。由於肉牛群的減少繼續收緊供應並加劇對牛的競爭，本季度活牛成本同比增加了約 3.05 億美元。

The margin compression resulting from reduced sales and increased cattle costs led to a segment operating income of $8 million and an operating margin of 0.2%, down from the historically high second quarter margin of 12.7% last year.

銷售額減少和養牛成本增加導致利潤率壓縮，導致該部門營業收入為 800 萬美元，營業利潤率為 0.2%，低於去年第二季度 12.7% 的歷史最高利潤率。

Looking next at the Pork segment. The volume gain of 1.1%, driven by improved hog availability was more than offset by the 10.3% decline in average sales price due to the soft global demand environment, leading to a decrease in overall sales of 9.2% versus the second quarter last year. The Pork segment posted an operating loss of $31 million for the quarter which was driven by the industry headwinds compressing pork packing margins and inflationary pressures on operating costs.

接下來看豬肉部分。受生豬供應改善推動，銷量增長 1.1%，但被全球需求環境疲軟導致的平均銷售價格下降 10.3% 所抵消，導致整體銷售額較去年第二季度下降 9.2%。豬肉部門本季度的運營虧損為 3100 萬美元，這是由於行業逆風壓縮豬肉包裝利潤率和運營成本的通脹壓力所致。

Moving on to the Chicken segment results. The sales increase in Chicken of 8.4% over the prior year quarter was driven by a 6.4% uptick in volume due to increased internal production. Benefits of prior period pricing actions drove 2% growth in sales despite a challenging commodity market. At a loss of $166 million, second quarter operating income was impacted adversely by market conditions and near-term impacts of strategic decisions we made that Donnie discussed earlier. Other headwinds experienced in the quarter included continuing export impacts from HPAI as well as higher feed ingredient cost of $145 million and an unfavorable year-over-year derivative impact of approximately $135 million, including a $35 million loss in this current quarter and $100 million gain in Q2 of last year.

轉到雞肉部分的結果。雞肉銷量較上年同期增長 8.4%，原因是內部產量增加導致銷量增長 6.4%。儘管大宗商品市場充滿挑戰，但前期定價行動的好處推動銷售額增長了 2%。第二季度營業收入虧損 1.66 億美元，受到市場狀況和我們早前討論過的戰略決策的近期影響的不利影響。本季度遇到的其他不利因素包括 HPAI 的持續出口影響以及 1.45 億美元的較高飼料原料成本和約 1.35 億美元的同比衍生品不利影響，包括本季度 3500 萬美元的虧損和 1 億美元的收益在去年的第二季度。

The industry operational headwinds do not change our approach, though. We expect to perform as the industry best-in-class operator while growing our internal production with our customer demand, enabling us to improve our fixed cost leverage, grow volume and gain market share. In addition to the continuous improvement of our operations, growing the market share of our portfolio of value-added products is imperative to maximizing our profitability and our long-term strategy.

不過，行業運營逆風並沒有改變我們的方法。我們希望成為行業一流的運營商，同時根據客戶需求增加我們的內部產量，使我們能夠提高固定成本槓桿率，增加產量並獲得市場份額。除了不斷改進我們的運營之外，增加我們的增值產品組合的市場份額對於最大限度地提高我們的盈利能力和我們的長期戰略至關重要。

Now lastly, to Prepared Foods, where our retail brands like Jimmy Dean, Hillshire Farm and State Fair continue to deliver industry-leading performance, outpacing all peers in both revenue and volume growth in the quarter. Total sales revenue grew 1.2%, primarily driven by pricing gains. The slight volume decline of 0.4% was driven by softness in food service volumes as the trajectory of this channel's recovery remains uneven. This was almost all offset though by the strong performance of our retail brands, driven by their category-leading position, improved supply and our MAP investments.

最後是預製食品，我們的零售品牌，如 Jimmy Dean、Hillshire Farm 和 State Fair 繼續提供行業領先的業績，在本季度的收入和銷量增長方面都超過了所有同行。總銷售收入增長 1.2%，主要受定價收益的推動。銷量小幅下降 0.4%，原因是餐飲服務銷量疲軟，因為該渠道的複蘇軌跡仍然不均衡。這幾乎全部被我們零售品牌的強勁表現所抵消，這得益於它們在類別中的領先地位、改善的供應和我們的 MAP 投資。

Compared to the prior year period, segment operating income decreased modestly due to increased raw material costs and brand building investments. This was partially offset by productivity gains and price increases. While down slightly against the historically strong comp, we are pleased with the operating margin performance of 10.4% in this challenging macro environment. We continue to be excited for the future in Prepared Foods as the segment is critical to valuing up Beef, Pork and Chicken commodity meat products and delivering strong earnings at a time when the commodity protein segment's profitability is under pressure.

與去年同期相比，由於原材料成本增加和品牌建設投資增加，分部營業收入略有下降。這部分被生產率提高和價格上漲所抵消。雖然與歷史強勢相比略有下降，但我們對在這個充滿挑戰的宏觀環境下 10.4% 的營業利潤率表現感到滿意。我們繼續對預製食品的未來感到興奮，因為該細分市場對於評估牛肉、豬肉和雞肉商品肉類產品的價值以及在商品蛋白質細分市場的盈利能力面臨壓力的情況下實現強勁收益至關重要。

We will continue to unlock value by increasing plant utilization, implementing productivity initiatives, and we will grow through innovation of new offerings, expansion of our existing product portfolio and the recovery of our food service business. Now to our financial position and capital priorities, we're building financial strength, investing in our business and returning cash to shareholders remain the priorities of our capital allocation strategy.

我們將繼續通過提高工廠利用率、實施生產力計劃來釋放價值，我們將通過創新新產品、擴展我們現有的產品組合和恢復我們的食品服務業務來實現增長。現在就我們的財務狀況和資本優先事項而言，我們正在建立財務實力，投資於我們的業務並將現金返還給股東仍然是我們資本配置戰略的優先事項。

First, let me spend a minute talking about our financial policy and long-term capital allocation and provide a bit more color around our approach to CapEx deployment. Our financial policy remains unchanged. We are committed to building financial strength, maintaining our investment-grade credit rating and targeting net leverage of at or below 2x net debt to EBITDA for the long term. Our capital allocation prioritizes investing in our business through CapEx as well as strategic and disciplined M&A while also returning cash to shareholders through dividends and share repurchases.

首先，讓我花一分鐘時間談談我們的財務政策和長期資本配置，並為我們的資本支出部署方法提供更多色彩。我們的財務政策保持不變。我們致力於建立財務實力，維持我們的投資級信用評級，並將長期淨槓桿率目標定為等於或低於淨債務與 EBITDA 的 2 倍。我們的資本配置優先通過資本支出以及戰略性和有紀律的併購來投資我們的業務，同時還通過股息和股票回購向股東返還現金。

As owner operators, our approach to CapEx is simple and effective, we support our maintenance CapEx needs and then we focus on growth and profit optimization, investing in opportunities that generate the greatest returns while maintaining a strong balance sheet. We don't expect our total CapEx this year to exceed $2.3 billion, which is down from our prior guidance of at or around $2.5 billion.

作為業主運營商，我們的資本支出方法簡單有效，我們支持維護資本支出需求，然後我們專注於增長和利潤優化，投資於產生最大回報的機會，同時保持強勁的資產負債表。我們預計今年的資本支出總額不會超過 23 億美元，低於我們之前 25 億美元左右的指導。

Now moving on from CapEx, during Q2, we returned $167 million to shareholders through dividends and $19 million in share repurchases. We have increased our dividend for 11 consecutive years and remain committed to supporting our dividend. We ended the quarter with $2.2 billion of liquidity and net leverage of 2.4x.

現在從資本支出開始，在第二季度，我們通過股息和 1900 萬美元的股票回購向股東返還了 1.67 億美元。我們已連續 11 年增加股息，並繼續致力於支持我們的股息。我們在本季度結束時擁有 22 億美元的流動資金和 2.4 倍的淨槓桿率。

Last week, we entered into a new term loan agreement for $1.75 billion to further enhance our liquidity. These funds will be used to pay off our existing commercial paper that's outstanding and some upcoming bond maturities and also to fund our investments in the business, including the pending acquisition of Williams Sausage, which will support our strategic focus on branded retail growth.

上週，我們簽訂了 17.5 億美元的新定期貸款協議，以進一步提高我們的流動性。這些資金將用於償還我們現有的未償還商業票據和一些即將到期的債券，並為我們對該業務的投資提供資金，包括即將收購 Williams Sausage，這將支持我們對品牌零售增長的戰略重點。

We remain committed to maintaining a disciplined yet opportunistic capital allocation strategy, ensuring that we deploy resources to maximize long-term shareholder value.

我們仍然致力於維持有紀律但機會主義的資本配置策略，確保我們部署資源以最大化長期股東價值。

Now let's review our updated outlook for fiscal 2023. Based on performance year-to-date and a moderating outlook for revenue growth, we are lowering our total company sales guidance to $53 billion to $54 billion or flat to 1% growth for the year. In our Beef segment, based on the deterioration in current market dynamics, we now expect margins to be between a loss of 1% and a gain of 1% for the fiscal year. Also, due to challenging market dynamics this time in our Pork segment, we are lowering margin guidance for the year to be between a loss of 2% and breakeven.

現在讓我們回顧一下我們對 2023 財年的最新展望。根據年初至今的業績和收入增長放緩的前景，我們將公司總銷售額指引下調至 530 億美元至 540 億美元，或持平至 1% 的全年增長率。在我們的牛肉部門，根據當前市場動態的惡化，我們現在預計本財年的利潤率將在 1% 的損失和 1% 的收益之間。此外，由於這次我們的豬肉業務市場充滿挑戰，我們將今年的利潤率指引下調至虧損 2% 和收支平衡之間。

In Chicken, we now expect full year margins to be between a loss of 1% and a gain of 1%, based on our results so far in April, we anticipate Q3 margins to be roughly breakeven as we gain momentum and exit the fourth quarter at or above the high end of the full year range.

在雞肉方面，我們現在預計全年利潤率將介於 1% 和 1% 之間，根據我們 4 月份迄今為止的結果，我們預計隨著我們獲得動力並退出第四季度，第三季度的利潤率將大致達到盈虧平衡處於或高於全年範圍的高端。

In the second quarter, Prepared Foods continued its strong performance, resulting in a first half margin above the guided range for the fiscal year. So we are maintaining that at 8% to 10%, driven by historical seasonality and continued brand support. And in our International business, we remain committed to expanding globally in the fastest-growing protein consumption markets in the world. Driven by continued year-over-year volume and revenue growth from new facilities ramping up, we are confident of our improved profitability in fiscal 2023, with stronger quarterly performance in the back half of the year compared to Q2.

第二季度，預製食品繼續保持強勁表現，上半年利潤率高於本財年的指導範圍。因此，受歷史季節性因素和持續品牌支持的推動，我們將這一比例維持在 8% 至 10%。在我們的國際業務中，我們仍然致力於在全球增長最快的蛋白質消費市場進行全球擴張。在銷量持續同比增長和新設施增加帶來的收入增長的推動下，我們對 2023 財年盈利能力的改善充滿信心，與第二季度相比，下半年的季度業績更為強勁。

As I mentioned earlier, we're reducing our expectations for CapEx to approximately $2.3 billion. And our net interest expense and tax rate are now expected to be around $340 million and 22%, respectively.

正如我之前提到的，我們將對資本支出的預期降低至約 23 億美元。我們的淨利息支出和稅率現在預計分別約為 3.4 億美元和 22%。

In summary, the first half was challenging and many of the headwinds experienced are likely to persist for the remainder of the fiscal year. Although the current operating environment has proven to be difficult, we view this as an opportunity to grow and improve our business operations, and we are optimistic on our long-term value driver prospects. We have great leadership and operational teams, growing demand for our products, robust portfolio diversity and the differentiated asset footprint needed to win in the marketplace as we continue to grow our business and provide desirable returns for our shareholders. So now, let me turn the call back over to Sean for Q&A instructions. Thanks, Sean.

總而言之，上半年充滿挑戰，所經歷的許多不利因素可能會持續到本財年的剩餘時間。儘管當前的運營環境已被證明是困難的，但我們將此視為發展和改善業務運營的機會，並且我們對我們的長期價值驅動前景持樂觀態度。我們擁有優秀的領導和運營團隊，對我們產品的需求不斷增長，強大的投資組合多樣性和差異化的資產足跡是我們在市場上取勝所必需的，因為我們將繼續發展我們的業務並為我們的股東提供理想的回報。所以現在，讓我將電話轉回 Sean 以獲取問答說明。謝謝，肖恩。

Thanks, John. Now we will move on to your questions. Please recall our cautions on forward-looking statements and non-GAAP measures apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instruction.

謝謝，約翰。現在我們將繼續回答您的問題。請記住我們對前瞻性陳述的警告，非 GAAP 措施適用於我們準備好的評論和以下問答。運營商，請提供問答說明。

(Operator Instructions) Our first question today comes from Ben Bienvenu from Stephens Inc.

（操作員說明）我們今天的第一個問題來自 Stephens Inc. 的 Ben Bienvenu。

So my first question is a 2-part question on the Chicken segment. So first part of the question, in the quarter, results, obviously, were weak and considerably weaker than we saw, I think, in the broader market. Could you talk to a few of the things that might have contributed to company-specific weakness in the segment.

所以我的第一個問題是關於雞肉部分的兩部分問題。因此，問題的第一部分，在本季度，結果顯然很弱，而且我認為比我們在大盤中看到的要弱得多。您能否談談可能導致該細分市場公司特定弱點的一些事情。

And then as you look going forward, you talked about -- John Randal, margins being flat in 3Q, breakeven and then ramping into 4Q what all is incorporated into that assumption? Is it what we've seen already in terms of improvement in quality fundamentals? Do you need to take further actions around closing underperforming facilities or reducing inventory? And maybe just help us understand what's embedded in that expectation going forward.

然後當你展望未來時，你談到了 - John Randal，利潤率在第三季度持平，收支平衡，然後進入第四季度，所有這些都包含在這個假設中嗎？這是我們已經看到的質量基礎改善方面的情況嗎？您是否需要圍繞關閉表現不佳的設施或減少庫存採取進一步行動？也許只是幫助我們了解這種期望中包含的內容。

Okay. Ben, this is Donnie. I'll start off and then for the Chicken portion of this, I'll flip it over to Wes and let him add some detail to this. But I would say this quarter was not a surprise to us. We knew Q2 was going to be challenging and it was. I've talked about the fact that I've never seen this highly unusual situation where Beef, Pork and Chicken were all experiencing challenges at the same time. Many of these are macro in nature. But in Chicken specifically -- in Chicken, we have seen operational improvements and market recovery. While slower than expected, it will recover and of all of our businesses that are challenged right now, Chicken will recover first.

好的。本，這是唐尼。我先開始，然後是雞肉部分，我會把它交給 Wes，讓他添加一些細節。但我想說這個季度對我們來說並不意外。我們知道第二季度將充滿挑戰，而且確實如此。我已經談到了這樣一個事實，即我從未見過牛肉、豬肉和雞肉同時面臨挑戰的這種極不尋常的情況。其中許多本質上是宏觀的。但特別是在 Chicken 中——在 Chicken 中，我們看到了運營改善和市場復甦。雖然比預期慢，但它會恢復，在我們目前面臨挑戰的所有業務中，Chicken 將首先恢復。

In the quarter, we had -- of our $166 million loss, $90 million of that came from 3 main areas. There was about 1/3 of it in mark-to-market, inventory adjustment, SKU rationalization accounted for about 1/3 of it and start-up costs associated with the mix change and improvement from bone-in to boneless plus a few asset impairments. So I would then go on to say Chicken remains a top priority for me. We have the #1 brand in Chicken. Our model doesn't give us the highs and lows of the commodity markets. That doesn't mean that we're not impacted by that and variable pricing model that we have in place, there are lags that go with that.

在本季度，我們有 1.66 億美元的虧損，其中 9000 萬美元來自 3 個主要領域。其中約 1/3 用於按市值計價、庫存調整、SKU 合理化約佔 1/3 以及與從帶骨到去骨的混合變化和改進相關的啟動成本以及一些資產減值。所以我會繼續說雞肉仍然是我的首要任務。我們擁有雞肉領域的第一品牌。我們的模型沒有給我們商品市場的高點和低點。這並不意味著我們不會受到我們現有的那個和可變定價模型的影響，隨之而來的是滯後。

About 2 years ago, I laid out for you the plan that we had with our Chicken business, and we're following it. We're growing our volume and improving our mix. We sow what we harvested and we reduced inventory by 20%. And I would tell you that we are relentless on operational execution. We continue to invest in automation and digital capabilities and we will and do compete with the very best in the industry. We're winning in every area in which we play. We have market leadership in every category. Customers and consumers are key priorities for us, and it's clear we're having success with them. We've just recently announced that we moved up into the top 10 of Kantar for the first time ever on the most recent power rankings. We expect to win with consumers behind the #1 brand in Chicken and win with our customers by being their go-to supplier.

大約 2 年前，我為您制定了我們的雞肉業務計劃，我們正在執行。我們正在增加我們的數量並改善我們的組合。我們播下了收穫的種子，並將庫存減少了 20%。我會告訴你，我們在運營執行方面毫不留情。我們將繼續投資於自動化和數字化能力，我們將會而且確實會與業內最優秀的公司競爭。我們在我們參與的每個領域都取得了勝利。我們在每個類別中都處於市場領先地位。客戶和消費者是我們的首要任務，很明顯我們在他們身上取得了成功。我們最近剛剛宣布，在最近的實力排名中，我們首次躋身 Kantar 前 10 名。我們希望在雞肉領域排名第一的品牌背後贏得消費者的青睞，並通過成為客戶的首選供應商贏得客戶的青睞。

And I have confidence in the team that we have in our Chicken business. We have the right strategy and are doing the right things for growth. We continue to implement this strategy and focus on the things that we can control, and we'll build on this strong place -- a strong foundation that we have in place. Now with that, let me stop Ben, and let me flip this to Wes Morris, who leads that Chicken business and that team and let him add some additional color.

我對我們在雞肉業務中擁有的團隊充滿信心。我們擁有正確的戰略，並且正在為增長做正確的事情。我們將繼續實施這一戰略，專注於我們可以控制的事情，我們將在這個強大的地方——我們現有的堅實基礎上繼續發展。現在，讓我阻止 Ben，讓我把這個交給 Wes Morris，他負責雞肉業務和那個團隊，讓他添加一些額外的顏色。

Ben, thanks for the question. No question, Q2 was tough for us and for the industry as a whole. The combination of grains and markets -- some of the key parts being down as much as 50% and then the ongoing export opportunities. Simply said, versus a year ago, grain up 11%, price up 2% and then $135 million change in derivatives. We did something nobody else though, in the industry has done, growing net sales, 8.4%, volume, 6.4% and improving our capacity, 4%.

本，謝謝你的提問。毫無疑問，第二季度對我們和整個行業來說都很艱難。穀物和市場的結合——一些關鍵部分下降了 50%，然後是持續的出口機會。簡單地說，與一年前相比，穀物上漲 11%，價格上漲 2%，然後是 1.35 億美元的衍生品變化。我們做了一些其他人在行業中沒有做過的事情，淨銷售額增長了 8.4%，銷量增長了 6.4%，我們的產能提高了 4%。

Based on published data, we competed actually better than an average company in the industry, and we kept investing at the same time. Donnie referenced the $90 million, I'd ask you to think at 2/3 of that as investments in our business going forward. The SKU rationalization and inventory adjustments, along with the packaging and ingredients makes us both more efficient and more consumer-centric at the same time.

根據公佈的數據，我們實際上比業內平均水平的公司更有競爭力，同時我們繼續投資。 Donnie 提到了 9000 萬美元，我想請你將其中的 2/3 視為對我們未來業務的投資。 SKU 合理化和庫存調整，以及包裝和配料使我們同時更加高效和以消費者為中心。

So let me talk about 4 key areas that my team is focused on and give you some insight into what we got done in the quarter. The 4 key areas of people, service, growth and performance. Our plants were staffed for the entire quarter. Our teams delivered the volume we needed to win with customers and consumers. And we sold everything we processed plus another 100 million pounds. So demand for our products were good in Q2. Our service levels increased 20 points year-over-year, we're back to historical levels of service. We executed very well at the holidays of Super Bowl and March Madness, gaining share in both food service and retail. We continue to invest in Danville, fully-cooked location, which will come on this fall.

因此，讓我談談我的團隊關注的 4 個關鍵領域，並讓您深入了解我們在本季度完成的工作。人員、服務、增長和績效這 4 個關鍵領域。我們的工廠在整個季度都配備了人員。我們的團隊交付了贏得客戶和消費者所需的數量。我們賣掉了我們加工的所有東西，外加另外 1 億英鎊。因此，第二季度對我們產品的需求很好。我們的服務水平同比提高了 20 個百分點，我們回到了歷史服務水平。我們在超級碗和瘋狂三月的假期表現出色，在餐飲服務和零售領域都獲得了份額。我們繼續投資 Danville，全熟地點，將於今年秋天開業。

We're now filling over 99% of what we call our [core 8] retail products. And so winning with consumers and customers at the same time. Donnie referenced the 2 plants we converted in the quarter from bone-in to boneless. And then we announced the closure of 2 facilities, which will improve our efficiency while increasing our volume. And we've seen operational improvements every week in the last quarter and in April. So we're well positioned to win with customers, consumers and drive out cost at the same time going forward.

我們現在正在填充 99% 以上的我們所謂的[核心 8] 零售產品。從而同時贏得消費者和客戶的青睞。 Donnie 提到了我們在本季度從帶骨轉化為去骨的 2 種植物。然後我們宣布關閉 2 個設施，這將提高我們的效率，同時增加我們的數量。我們在上個季度和四月份每週都看到運營改進。因此，我們有能力贏得客戶、消費者的青睞，同時降低成本。

And Ben, I want to just pick up on a couple of specific parts of your question there. I think, first off, you're asking, are there further actions that we're contemplating and just to address that directly, we're always looking at the footprint, but everything that we're doing is focused on growing our business today. And I would note that with the 2 announcements we made earlier in the quarter, we're still growing the business. You mentioned inventory too, part of working through, kind of some of the changing market conditions does mean continuing to pull down inventory. And so that will influence the outlook. But you noted correctly from the earlier remarks on kind of moving to breakeven and improving through the back half of the year is what we expect to see in poultry.

本，我只想回答你問題的幾個特定部分。我想，首先，你問的是，我們是否正在考慮採取進一步的行動，只是為了直接解決這個問題，我們一直在關注足跡，但我們所做的一切都專注於發展我們今天的業務.我要指出的是，隨著我們在本季度早些時候發布的 2 條公告，我們的業務仍在增長。你也提到了庫存，這是工作的一部分，一些不斷變化的市場條件確實意味著繼續降低庫存。因此，這將影響前景。但是你從早先的評論中正確地註意到了在今年下半年實現收支平衡和改善是我們期望在家禽中看到的。

Okay. That's helpful color. Maybe shifting gears a little bit to the Prepared Foods segment. That's been a bright spot certainly for the first half of the fiscal year. The guidance for the balance of the year implies some margin moderation. I know you guys are focused on picking up some food service business that you lost and I think carries some lower margins. Is that key to what's embedded in the operating margin guidance for the balance of the year? And what are the potential sources of upside or downside to that expectation?

好的。這是有用的顏色。也許將齒輪稍微轉移到預製食品部分。這無疑是本財年上半年的一個亮點。對今年餘下時間的指導意味著利潤率有所下降。我知道你們正專注於收購一些你們失去的食品服務業務，我認為利潤率較低。這是今年餘下營業利潤率指導中所含內容的關鍵嗎？該預期的潛在上行或下行來源是什麼？

Got it. Let me pick up on that. We're pleased with the overall performance in the first half of the year. And I can see that we're making progress with both of our brands and our operations to improve margins. You're seeing that in the results. You're also -- by the way, you're seeing it in absolute dollars because I think if you looked at the first half this year versus last year, we're up about 10%. So all of that is good news.

知道了。讓我來談談。我們對上半年的整體表現感到滿意。而且我可以看到我們在品牌和運營方面都取得了進展，以提高利潤率。你在結果中看到了這一點。你也是 - 順便說一下，你看到的是絕對美元，因為我認為如果你看看今年上半年與去年相比，我們上漲了大約 10%。所以所有這些都是好消息。

If -- when you're looking forward, the shape of our year on a quarterly basis will look similar to last year in the sense that we expect a stronger first half than the second half and this is because of 2 things. First, because of normal seasonality in the business; and second, because we expect to have some higher brand investments behind our retail brands in the back half. That's important. Those brands are doing well. They have strong engagement with customers. And I want to make sure that we have continued investment to reinforce that. There is more work to do in food service. And in that space, the customer decision and contract cycles are longer. So it takes a little bit to win back that business. But we have a strong platform. We have good products, and I'm confident we're going to start to see the benefits of that improvement in the future.

如果 - 當你期待時，我們今年的季度形狀看起來與去年相似，因為我們預計上半年比下半年更強勁，這是因為兩件事。首先，由於業務的正常季節性；其次，因為我們預計在後半段我們的零售品牌背後會有一些更高的品牌投資。這很重要。這些品牌做得很好。他們與客戶有很強的互動。我想確保我們繼續投資以加強這一點。在餐飲服務方面還有更多工作要做。在那個領域，客戶決策和合同周期更長。因此，贏回該業務需要一點點時間。但是我們有一個強大的平台。我們有很好的產品，我相信我們會在未來開始看到這種改進的好處。

Our next question comes from Adam Samuelson from Goldman Sachs.

我們的下一個問題來自高盛的亞當薩繆爾森。

Maybe my first question, just in Beef and taking kind of the revised outlook and it would seem to imply the business is operating kind of breakeven or a loss for the next couple of quarters. And I just want to make sure I'm thinking about that properly in the context of kind of industry packer margins, which, while certainly off their highs, are not negative. And just how do we then think about the implications of that into fiscal '24 and '25 candidly. And is cattle availability is just going to get worse progressively over the next couple of years, given kind of what we know about the cattle herd right now?

也許我的第一個問題，只是在牛肉方面，並採取某種修改後的前景，這似乎意味著該業務在接下來的幾個季度中處於收支平衡或虧損狀態。我只是想確保我在某種行業包裝商利潤率的背景下正確地考慮這一點，雖然肯定低於他們的高點，但並不是負面的。然後我們如何坦率地考慮這對 24 和 25 財年的影響。考慮到我們現在對牛群的了解，未來幾年牛的供應量是否會逐漸惡化？

Okay, Adam. Let me -- I'll start off and then I will pass it to Brady for some greater detail around that. But as expected in Beef that there was tightness in cattle [spot], we saw increased live cost and a softer export market. Probably the thing that is most interesting there, and unfortunately, I'm not going to be able to give you the answer to this, but it's around cow and heifer retention and we do have better, faster growing conditions. If you look at Central Texas up to Nebraska, there still needs to be some more moisture. We saw cow harvest towards the end of the quarter began to decline. Some indication of the closure of the liquidation cycle. If you look at heifer feed numbers, we're not in a rebuild phase, just yet. More attention -- more retention is needed on the heifers before we're ready to signal that the rebuild has begun. So with that, Brady, you add some additional color, if you would.

好的，亞當。讓我 - 我會開始，然後我會把它傳遞給 Brady 以獲得更多細節。但正如預期的那樣，牛肉供應緊張 [spot]，我們看到活成本增加，出口市場疲軟。可能那裡最有趣的事情是，不幸的是，我無法給你答案，但它圍繞著奶牛和小母牛的保留，我們確實有更好、更快的生長條件。如果你看看德克薩斯州中部到內布拉斯加州，那裡仍然需要更多的水分。我們看到本季度末奶牛收成開始下降。清算週期結束的一些跡象。如果您查看小母牛飼料數量，我們還沒有處於重建階段。更多的關注——在我們準備好發出重建已經開始的信號之前，需要對小母牛進行更多的保留。因此，布雷迪，如果你願意的話，你可以添加一些額外的顏色。

Thanks, Donnie, and thanks, Adam, for the question. I think there's a few specific call outs relative to standard industry gross margin calculations that we need to take into account during this specific time frame here in '23. And number one is while we still see export demand being relatively strong from a quarter-over-quarter perspective and versus prior periods, the opportunity for us to arbitrage our exports opportunities versus domestic with some cutout runs that have occurred in specific products has actually diminished our opportunity to capture some of those results from a Tyson perspective.

謝謝 Donnie，也謝謝 Adam 提出的問題。我認為在 23 年的這個特定時間範圍內，我們需要考慮一些與標準行業毛利率計算相關的具體要求。第一，雖然我們仍然看到出口需求與上一季度相比相對強勁，但我們利用出口機會與國內套利的機會實際上已經減少了我們有機會從泰森的角度捕捉其中的一些結果。

Number two is we've seen some pullback on drought credit values and again, versus the previous cattle cycle, we saw drought values are strong. However, from a quarter-over-quarter perspective, again, we saw some pullback as well that certainly impacts some of the calculations relative to gross margin.

第二，我們已經看到干旱信用值有所回落，並且與之前的牛週期相比，我們再次看到干旱值很強勁。然而，從季度環比的角度來看，我們再次看到一些回落，這肯定會影響與毛利率相關的一些計算。

And number three, from a brand versus choice perspective, we've seen a pullback in USDA data indicates that the spread between branded and choice actually decreased $4.3 hundredweight quarter-over-quarter from a sequential standpoint. So those are certainly some of the factors that are in our mind as we continue to look at the remainder of '23.

第三，從品牌與選擇的角度來看，我們看到美國農業部數據的回落表明，從連續的角度來看，品牌和選擇之間的差價實際上比上一季度減少了 4.3 美元英擔。因此，當我們繼續關注 23 年的剩餘時間時，這些肯定是我們考慮的一些因素。

As we move into 2024 and beyond, in addition to the comments that Donnie made relative to the cycle that we're in, there's reasons for both challenges from an industry perspective relative to gross margin. There's also a reason for us to be optimistic. And number one, we'll absolutely be relentless in terms of operational excellence. And really, it's about Tyson and our team, controlling what we can control. The markets will do their job over time, but we have a world-class Beef business, and the expectation is we'll continue to perform at a very high level as we move through the cycle.

隨著我們進入 2024 年及以後，除了 Donnie 就我們所處的周期發表的評論外，從行業角度來看，與毛利率相關的這兩個挑戰都有原因。我們也有理由保持樂觀。第一，我們絕對會在卓越運營方面堅持不懈。真的，這是關於泰森和我們的團隊，控制我們能控制的東西。市場會隨著時間的推移發揮作用，但我們擁有世界級的牛肉業務，並且期望我們在整個週期中繼續以非常高的水平表現。

Number two is we have the opportunity to get closer to our customers and our consumers. We have capacity within our case-ready and value-added business, we've been working diligently to fill that capacity and feel very good and comfortable in terms of the future of that business to get closer to the consumer as well.

第二，我們有機會更貼近我們的客戶和消費者。我們在案例準備和增值業務中有能力，我們一直在努力填補這種能力，並且對該業務的未來感到非常好和舒適，以更接近消費者。

So while there are challenges ahead relative to the markets, I feel we're in a very good position to weather those challenges as we move forward.

因此，儘管市場面臨挑戰，但我認為我們在前進的過程中處於非常有利的地位來應對這些挑戰。

Okay. I appreciate that color. And maybe a follow-up for John Randal. You guys don't give a specific EPS or EBITDA guidance, but if I kind of roll through the revised sales outlook and kind of middle of the range on the different operating units, it would seem to imply that by the end of the fiscal year, net debt to EBITDA could be at or above 4x. Just want to get your perspective on -- given kind of your own earnings outlook kind of, if that's actually correct and kind of your comfort level of operating at that place for a period of time, particularly if Beef isn't kind of quickly reversing?

好的。我很欣賞那種顏色。也許是約翰蘭德爾的後續行動。你們沒有給出具體的 EPS 或 EBITDA 指導，但如果我稍微回顧一下修改後的銷售前景和不同運營部門的中間範圍，這似乎意味著到本財政年度結束，EBITDA 的淨債務可能達到或超過 4 倍。只是想了解一下你的觀點——考慮到你自己的盈利前景，如果這真的是正確的，以及你在那個地方經營一段時間的舒適度，特別是如果牛肉不會很快逆轉的話？

Yes. Thank you for that question. And let me talk about the outlook and get a little more clarity on that, when we talk about leverage. I'm glad you asked this question. So if you look at the return on sales guidance that we've given kind of on a segment-by-segment basis, it could take a few different shapes. So a point I want to make sure that our listeners take away today is that when we look at a total operating income number for the second half of the year, we expect that to be in aggregate similar to or maybe slightly down compared to the first half of the year. So depending on the different movements within the various core proteins, that's kind of the net of it. We want to make sure lands from an outlook perspective.

是的。謝謝你提出這個問題。當我們談論槓桿時，讓我談談前景並更清楚地了解這一點。很高興你問了這個問題。因此，如果您查看我們在逐個細分市場的基礎上給出的銷售指導回報率，它可能有幾種不同的形狀。因此，我想確保我們的聽眾今天得到的一點是，當我們查看今年下半年的總營業收入數字時，我們預計總體上與上半年相似或可能略有下降半年。因此，根據各種核心蛋白質內的不同運動，這就是它的網。我們希望確保從前景的角度來看土地。

And as you suggested, that does have implications for what our total leverage ratio as we move into the back half of the year. And what I can say is we're focused in the long run on that 2x number, and I think just pointing to what we've done in the last couple of years, we were diligent in paying off $3 billion worth of debt. We've invested in the business from a growth standpoint, we've got new operations coming online and retail branded chicken, bacon and a lot of growth outside the U.S., aligned with our strategy. So I think while the timing on some of the capital expenditures, for example, kind of puts a pressure on the operating cash flows. I think we're comfortable with where we are and feel good about the outlook.

正如您所建議的那樣，這確實對我們進入下半年時的總槓桿率產生了影響。我可以說的是，從長遠來看，我們關注的是 2 倍的數字，我認為只要指出我們在過去幾年所做的事情，我們就努力償還了價值 30 億美元的債務。我們從增長的角度投資於業務，我們有新業務上線，零售品牌雞肉、培根和美國以外的大量增長，符合我們的戰略。因此，我認為，例如，一些資本支出的時機會給經營現金流帶來壓力。我認為我們對自己的處境感到滿意，並對前景感到滿意。

I think that we know there's volatility in our business. Ratings agencies keep up with that. I mean, I can't speak for them this morning, but we're in constant communication, providing them outlooks about the business. So overall, we feel good, but yes, the leverage ratio will pick up for a little while.

我認為我們知道我們的業務存在波動。評級機構緊跟其後。我的意思是，今天早上我不能代表他們發言，但我們一直在溝通，為他們提供有關業務的前景。所以總的來說，我們感覺很好，但是，槓桿率會上升一段時間。

Our next question comes from Andrew Strelzik from BMO.

我們的下一個問題來自 BMO 的 Andrew Strelzik。

I guess I wanted to start on the Chicken side. And I'm curious, kind of philosophically how you're thinking about growth and which is clearly the focus on growing the volumes versus balancing that with kind of the medium-term margin outlook. Have you changed at all your expectations on the back half Chicken volumes that you would expect to realize and just kind of philosophically how you think about that?

我想我想從雞肉方面開始。我很好奇，從哲學上講，你是如何看待增長的，這顯然是關注增加銷量，而不是平衡這種增長與中期利潤率前景。您是否完全改變了對後半部分雞肉捲的期望，您希望實現這一點，並且從哲學上講您是如何看待它的？

Andrew, this is Wes. Thanks for the question. First and foremost, we got to stay focused on our business and our customer expectations. And so we will, in fact, improve our capacity utilization over time. I think it's important to understand that our supply plan is actually our demand plan that we start with the demand plan and work backwards and as we see more demand for our products, we improve our capacity utilization. So hopefully, that answers your question.

安德魯，這是韋斯。謝謝你的問題。首先，我們必須專注於我們的業務和客戶的期望。因此，事實上，我們將隨著時間的推移提高我們的產能利用率。我認為重要的是要了解我們的供應計劃實際上是我們的需求計劃，我們從需求計劃開始並向後工作，隨著我們看到對我們產品的更多需求，我們提高了我們的產能利用率。希望這能回答您的問題。

Yes. If I can add to that, though, I think you asked specifically about how do we balance the profitability versus the growth. And what I want to point out is that we've pulled down the total sales outlook for the business, but we're still projecting to grow from a volume standpoint. So I think the Chicken call compared to a quarter ago is still up, but slightly less than what we had initially projected just because of the demand that was referenced.

是的。不過，如果我可以補充一點，我想你特別詢問了我們如何平衡盈利能力與增長。我想指出的是，我們已經下調了該業務的總銷售前景，但我們仍預計從數量的角度來看會增長。所以我認為與一個季度前相比，Chicken 電話仍然上漲，但略低於我們最初預測的只是因為所參考的需求。

Got it. Okay. That's helpful. And if I could ask one also on productivity, obviously, have achieved the targets well ahead of your original expectations. How are you thinking about the productivity opportunity from here? I know there's a continuous improvement in mindset, but any way to frame kind of how you think about magnitudes of opportunity around productivity.

知道了。好的。這很有幫助。如果我也可以問一個關於生產力的問題，顯然，已經實現了遠遠超過您最初預期的目標。您如何看待這裡的生產力機會？我知道思維方式在不斷改進，但任何方式都可以構建您如何看待圍繞生產力的機會的大小。

Well, thanks for that question. It's still -- as we've said, I mean, we are continually focused on being the absolute best from an operations perspective. We want to be the best company, the best brand, the best protein wherever we choose to play. And what we're doing very simply is executing those things through productivity, through efficiency to deliver that. Some of that requires adding volume, for example, in Chicken. Some of that requires improved yield and labor utilization. It includes -- it also -- looking at the assets that you have and trying to make sure that we modernize those and invest in those and get the right footprint not only today but going forward. We'll do all those things and continue doing all those things. But the whole efficiency-productivity piece is top of mind for everyone in this organization today.

好吧，謝謝你提出這個問題。它仍然 - 正如我們所說，我的意思是，我們一直專注於從運營的角度來看絕對是最好的。無論我們選擇在哪裡玩，我們都想成為最好的公司、最好的品牌、最好的蛋白質。我們所做的非常簡單，就是通過生產力、通過效率來執行這些事情。其中一些需要增加體積，例如，在雞肉中。其中一些需要提高產量和勞動力利用率。它包括——它還——查看你擁有的資產，並努力確保我們對這些資產進行現代化改造並對其進行投資，不僅在今天而且在未來都取得正確的足跡。我們將做所有這些事情，並繼續做所有這些事情。但整個效率-生產力部分是當今組織中每個人的首要考慮因素。

Our next question comes from Alexia Howard from Bernstein.

我們的下一個問題來自伯恩斯坦的 Alexia Howard。

Sticking with Chicken, can I ask about the price -- the market pricing dynamics? I know obviously, last quarter, there was a challenge because there was an excess of chicken -- of fresh chicken flooding the market over the holiday period. I get the point that, that sort of bled into this quarter as well. Is there any visibility into how that might -- whether that might firm up in the second half of the fiscal year? Or where are we in that cycle? And then I have a follow-up.

堅持吃雞肉，我能問一下價格——市場定價動態嗎？我清楚地知道，上個季度存在一個挑戰，因為雞肉過多——新鮮雞肉在假期期間湧入市場。我明白這一點，這種情況也滲入了本季度。是否有任何可見性 - 這是否會在本財政年度下半年鞏固？或者我們在那個週期中處於什麼位置？然後我有一個後續行動。

Yes. Sure. This is Wes. I'll answer that. We didn't see a lot of movement in January and February, and we started seeing a little more strength in March, which for us will flow through the next quarter. We have seen some pullet numbers that would indicate a little stronger markets in the back half of the year.

是的。當然。這是韋斯。我會回答的。我們在 1 月和 2 月沒有看到太多變化，我們在 3 月開始看到更多的力量，對我們來說，這將貫穿下一個季度。我們已經看到一些預示今年下半年市場略微走強的母雞數據。

Great. And then on to the Prepared Foods, with the Kantar PoweRanking study, I'm just wondering what it was that's changed in your retailer relationships because that is a big move. I mean, to get into the top 10, there's a lot of larger, more established, CPG-type companies that are not in the top 10. I'm just wondering what you think has changed over the last couple of years to have got you there.

偉大的。然後是預製食品，通過 Kantar PoweRanking 研究，我只是想知道您的零售商關係發生了什麼變化，因為這是一個重大舉措。我的意思是，要進入前 10 名，有很多更大、更成熟的 CPG 類公司不在前 10 名之列。我只是想知道你認為過去幾年發生了什麼變化你在那裡。

Thank you, Alexia. Well, first, I would tell you it was on purpose. We talked about very simply -- and the mantra around here is winning with our team members, creating a differentiated place to work, getting happy team members, having fully staffed operations was important and then winning with customers and consumers. We've invested a lot and continue to support customers and consumers with our brands, with innovation, with all those things. We want to be the best or be their go-to supplier in every part of our business.

謝謝你，亞歷克西婭。好吧，首先，我會告訴你這是故意的。我們談論的非常簡單——這裡的口頭禪是贏得我們的團隊成員，創造一個差異化的工作場所，讓團隊成員快樂，擁有完整的員工運營很重要，然後贏得客戶和消費者。我們投入了大量資金，並繼續通過我們的品牌、創新和所有這些來支持客戶和消費者。我們希望在我們業務的每個部分都成為最好的或成為他們的首選供應商。

And then finally, and this is kind of where the rubber meets the road, but winning with executional excellence throughout this organization. And it is -- that is the result -- what you're seeing in this survey is a result of the work that this team has done.

最後，這就是橡膠遇到道路的地方，但在整個組織中以卓越的執行力取勝。這就是結果——您在本次調查中看到的是該團隊所做工作的結果。

Our next question comes from Ken Goldman from JPMorgan.

我們的下一個問題來自摩根大通的 Ken Goldman。

I do appreciate, Donnie, your comments about the macro. Certainly, there's a lot of challenges that everyone is facing. I'm just -- I wanted to ask, it looks to me like, at least for this one quarter sort of the performance gap, as measured by margin did widen a little bit between the industry and Tyson in both Beef packing and in Chicken. I'm just looking at some of your bigger competitors in Chicken, and I'm just looking at sort of HedgersEdge and our own model for Beef margins. So I know those aren't perfect comparisons.

Donnie，我非常感謝您對宏的評論。當然，每個人都面臨著很多挑戰。我只是 - 我想問，在我看來，至少在這四分之一的績效差距中，按利潤率衡量，在牛肉包裝和雞肉方面，行業和泰森食品之間確實有所擴大.我只是在看你在雞肉方面的一些更大的競爭對手，我只是在看某種 HedgersEdge 和我們自己的牛肉利潤率模型。所以我知道這些不是完美的比較。

But I'm just trying to get a sense of, a, is that how you guys see it as well? Or are my assumptions there wrong? And b, how quickly, if they are right, can we kind of reverse that and you can kind of get back to growing in line or having the margin in line with those kind of major segments.

但我只是想了解一下，你們也是這樣看的嗎？還是我的假設有誤？ b，如果他們是對的，我們能以多快的速度扭轉這種局面，你可以恢復到與這些主要細分市場一致的增長或利潤率。

So Ken, I'll start off and then I will flip that to give a little more color from Wes around Chicken and Brady on Beef. But I did talk about the macro a lot. And I got to tell you, it pains me to talk about that because that we've never been able to control macro-economic issues or market conditions. But what I can tell you is we are controlling what we can. And we have a full-court press on being the best that we can be in operational excellence and winning with customers and consumers.

所以 Ken，我會開始，然後我會翻轉它，讓 Wes 圍繞雞肉和 Brady 對牛肉賦予更多色彩。但我確實談了很多宏。我必須告訴你，談論這個讓我很痛苦，因為我們從未能夠控制宏觀經濟問題或市場狀況。但我可以告訴你的是，我們正在控制我們能控制的。我們全場緊逼，盡我們所能在卓越運營方面做到最好，並贏得客戶和消費者的青睞。

But the other thing I would tell you, Ken, is that here at Tyson and as you know, I've been through a number of these cycles before, this company has been -- in its 90-year history, has been through a number of them before. But what we have done in the past, and we're doing this time is we're accelerating in the bottom of this cycle, and we always come out better and stronger. And I see no reason to believe that we won't do that this time as well.

但是，肯，我要告訴你的另一件事是，在泰森這裡，如你所知，我之前經歷過許多這樣的周期，這家公司已經——在其 90 年的歷史中，經歷了一個他們之前的數量。但我們過去所做的，以及這次我們正在做的是，我們正在這個週期的底部加速，我們總是會變得更好、更強。我認為沒有理由相信我們這次也不會這樣做。

And let me flip it to Wes to add some Chicken color.

讓我把它翻轉給 Wes 添加一些雞色。

Yes, Ken. I think take into consideration the timing of how our pricing flows through is different than others. We have a further lag. Number two, the $135 million year-over-year derivative change and then the $60 million of the $90 million Donnie talked about in efficiency investment, I believe we competed better than the average in the industry.

是的，肯。我認為考慮到我們定價流動的時間與其他人不同。我們還有進一步的滯後。第二，1.35 億美元的同比衍生品變化，然後是 Donnie 在效率投資中談到的 9000 萬美元中的 6000 萬美元，我相信我們的競爭力優於行業平均水平。

All right. If I could ask another quick question. The Williams Sausage acquisition, I think we got a price today in the 10-Q of $200 million to $250 million. Could you give us a little bit of detail on what the expected revenues are, the last 12-month revenues? And sort of why now is the right time to do a deal, given some of the challenges you have in the balance sheet?

好的。如果我可以問另一個快速問題。收購 Williams Sausage，我認為我們今天在 10-Q 的價格為 2 億至 2.5 億美元。您能否詳細介紹一下預期收入，即過去 12 個月的收入？考慮到您在資產負債表中面臨的一些挑戰，為什麼現在是進行交易的合適時機？

Yes. This is John. Let me say a couple of things on that. First off, let me just make a shot out and thanks to the Williams family who we've got this transaction with, and we're grateful to them for entrusting 60-plus years of a family business to be part of the Tyson family.

是的。這是約翰。讓我說幾件事。首先，讓我先說一句，感謝與我們達成交易的威廉姆斯家族，我們感謝他們將 60 多年的家族企業託付給泰森家族。

As it relates to the kind of contours of the transaction, let me answer the question why now. We're always being diligent and thoughtful about the M&A opportunities that we're pursuing. And I think this was a transaction that we got across the finish line based on the characteristics of the branded portfolio and the return profile. So when we close that in the coming months, we're excited to bring that into the Tyson Prepared Foods business.

由於它涉及交易的輪廓類型，讓我現在回答為什麼這個問題。我們一直對我們正在尋求的併購機會保持勤奮和深思熟慮。我認為這是我們根據品牌組合的特徵和回報情況完成的交易。因此，當我們在未來幾個月內關閉它時，我們很高興將其帶入泰森預製食品業務。

Yes. Ken, let me just add a little bit here, this is Stewart. Look, this is a company with some great brands and some really great facilities and 2 things are going to come out of this. First, there are capabilities we're going to have because right now, most of our stock harvest goes through a single facility, this is going to provide some redundancy that makes sense for our business, particularly because Jimmy Dean is so important to the portfolio.

是的。肯，讓我在這裡補充一點，我是斯圖爾特。看，這是一家擁有一些很棒的品牌和一些非常棒的設施的公司，這將帶來兩件事。首先，我們將擁有一些能力，因為現在，我們的大部分股票收穫都通過一個單一的設施，這將提供一些對我們的業務有意義的冗餘，特別是因為 Jimmy Dean 對投資組合非常重要.

And then second, when you look at the brands that are going to be complementary to our brands, along with a [DSG] network that, frankly, we haven't had in our portfolio before, I think we're setting up for a very interesting deal here that is going to be a good addition to Tyson.

其次，當您查看將與我們的品牌互補的品牌，以及 [DSG] 網絡時，坦率地說，我們以前的產品組合中沒有，我認為我們正在建立一個這裡非常有趣的交易將成為泰森的一個很好的補充。

And our next question comes from Peter Galbo from Bank of America.

我們的下一個問題來自美國銀行的 Peter Galbo。

Maybe we can just start going back off of Ken's question, particularly around Beef. First, I think there's probably been some noise out there in the market that just shifts are being cut across kind of the entire Beef network and some of that maybe is due to the lower kind of harvest levels. But if you can kind of comment there.

也許我們可以開始迴避 Ken 的問題，尤其是關於 Beef 的問題。首先，我認為市場上可能存在一些噪音，即整個牛肉網絡的轉移正在被削減，其中一些可能是由於較低的收穫水平。但如果你可以在那裡發表評論。

And then secondly, Brady, I'd just be curious for your perspective, with cattle prices basically at all-time highs, in speaking to cow-calf operators, like what are the unit economics looking for them like in real time? How does that kind of change their decision-making process around retention or not? Because again, looking at the spreadsheet math, you'd think the price would be enough of an incentive, but obviously, a lot of their cost structure has probably changed as well. So I would appreciate any color there.

其次，布雷迪，我只是想知道你的觀點，牛的價格基本上處於歷史高位，在與小牛經營者交談時，比如實時尋找他們的單位經濟學是什麼？這如何改變他們關於保留或不保留的決策過程？因為再次查看電子表格數學，您會認為價格足以作為激勵，但顯然，他們的許多成本結構也可能發生了變化。所以我會很感激那裡的任何顏色。

Well, thanks for the question, Peter. First of all, let me address both the question that Ken posed and you posed as well around Beef. And I think there's a few important aspects of Q2 that we need to focus on. So first is relative to timing. Tyson has quarterly pricing that we use for several of our large customers. And so in very specific primal areas where we've seen some inflation from a cutout perspective in those primals quarter-over-quarter, we have a timing lag relative to those specific customers and agreements.

好吧，謝謝你的問題，彼得。首先，讓我來解決一下 Ken 提出的和您提出的關於 Beef 的問題。我認為我們需要關注第二季度的幾個重要方面。所以首先是相對於時機。泰森有我們為幾個大客戶使用的季度定價。因此，在非常具體的原始領域，我們已經從這些原始領域的季度環比中看到了一些通貨膨脹，相對於那些特定的客戶和協議，我們有時間滯後。

Second is we did see some hedging losses in the quarter that impacted performance. Third would be our volume. And so as you mentioned, we did see a decrease relative to volume. And so when we saw that volume -- we lost some volume leverage relative to our cost structure and our assets. We're working diligently from an efficiency perspective and seen some good improvements in that area as well to help offset that as we move forward.

其次，我們確實看到本季度的一些對沖損失影響了業績。第三是我們的數量。因此，正如您提到的，我們確實看到了相對於數量的減少。因此，當我們看到這個數量時——我們失去了一些相對於我們的成本結構和資產的數量槓桿。我們正在從效率的角度努力工作，並在該領域看到了一些很好的改進，並在我們前進的過程中幫助抵消了這一點。

As I mentioned earlier, export demand has been softened. The strength of the U.S. dollar and FX has had an impact on some export demand and specifically the substitution products that we see from a domestic portfolio, we're not seeing those large gains as we did in previous quarters. That relative to drop value all go into play in terms of what our actual results are versus some of the index modeling that occurs as well.

正如我之前提到的，出口需求已經疲軟。美元和外匯走強對一些出口需求產生了影響，特別是我們從國內投資組合中看到的替代產品，我們沒有看到前幾個季度那樣的大幅增長。相對於下降值，所有這些都在我們的實際結果與發生的一些指數建模之間發揮作用。

And relative to the cow-calf operator and how they look at the business, obviously, a lot has changed since the last cycle. Interest rates are up right now. There is some incentives for the cow-calf operator to go ahead and market the heifer into feed yards as opposed to retain just relative to the strength we're seeing from feeder market as well. So we're still seeing some drought conditions from Central Texas up through Central Nebraska, that's creating some challenges, but the good news is for the cow-calf operators that are working outside of that space, we've seen some remedy relative to drought conditions and moisture here within the last several months that provides some optimism as well.

相對於小牛運營商以及他們如何看待業務，顯然，自上一個週期以來發生了很多變化。利率現在上升了。奶牛小牛經營者有一些動機繼續將小母牛推向飼料場，而不是僅僅相對於我們從飼養市場看到的實力而保留。因此，從德克薩斯州中部到內布拉斯加州中部，我們仍然看到一些乾旱情況，這帶來了一些挑戰，但好消息是，對於在該地區以外工作的奶牛和犢牛經營者來說，我們已經看到了一些與乾旱相關的補救措施過去幾個月這裡的條件和濕度也提供了一些樂觀情緒。

Great. That's very helpful. And Donnie, I just wanted to go back to one of your comments, I think you did mention, I think, around Chicken that you took some asset impairments in the quarter. I'm not sure that I saw those in the Q. But just maybe thinking on a longer-term basis, look, Chicken has been a business where you've been quite acquisitive. I think the margin profile, self admittedly, has probably been a little bit weaker than you would have thought. Just as we kind of sit here today and go through the balance of the year, like how do we think about further impairment risk in that business particularly as the margin improvement even coming out of this year isn't expected to be kind of at your long-term average.

偉大的。這很有幫助。 Donnie，我只想回到你的一條評論，我想你確實提到過，我認為，圍繞 Chicken，你在本季度進行了一些資產減值。我不確定我是否在 Q 中看到了這些。但也許從長遠來看，看，Chicken 一直是一個你非常收購的企業。我承認，我認為利潤率可能比你想像的要弱一些。就像我們今天坐在這裡回顧今年的餘額一樣，我們如何考慮該業務的進一步減值風險，特別是因為即使今年出現的利潤率改善預計也不會達到您的要求長期平均。

Thanks for that question. I'll touch on this at a high level. But in terms of your question, for the past few years, we've taken bold and aggressive steps to advance productivity and efficiency. We're constantly evaluating how we can be more efficient, push down decision-making and remove duplication of [flows]. Those are all top of mind today. But we have also have done a number of things looking at our footprint, looking for what it would take to make our less efficient assets -- and this would be across the portfolio. How do we either make them efficient, how do we automate them, how do we redesign them or, in some cases, you could look at how would you sell it or how would you close it? And we look at all those different options.

謝謝你的問題。我將在高層次上談及這一點。但就你的問題而言，在過去的幾年裡，我們採取了大膽而積極的措施來提高生產力和效率。我們一直在評估我們如何才能更有效率，推動決策制定並消除[流程]的重複。這些都是今天最重要的。但我們也做了很多事情來研究我們的足跡，尋找使我們的資產效率較低的方法——這將貫穿整個投資組合。我們如何提高它們的效率，我們如何使它們自動化，我們如何重新設計它們，或者在某些情況下，您可以考慮如何出售或關閉它？我們會考慮所有這些不同的選擇。

But I want to remind you that our strategy is all about growth. Growth in our base or core protein businesses, growth in our branded portfolio and growth internationally where it makes sense. So making sure that you understand clearly that we are in a growth mode and at the same time, trying to rightsize our footprint in our production machines to deliver those products that customers and consumers love.

但我想提醒您，我們的戰略完全是為了增長。我們基礎或核心蛋白質業務的增長，我們品牌產品組合的增長以及國際上有意義的增長。因此，請確保您清楚地了解我們處於增長模式，同時努力調整我們在生產機器中的足跡，以提供客戶和消費者喜愛的產品。

And our next question comes from Ben Theurer from Barclays.

我們的下一個問題來自巴克萊銀行的 Ben Theurer。

Just wanted to come back to Chicken in actually some of the like historic context and ask about your performance particularly as it relates to hatch rates and hatchability because it was interesting in the past, it seems like the performance itself was impacted by the very specific issues you were facing. We saw the industry relatively soft, I would say, in the last couple of weeks, but it feels like that your performance, at least from a volume perspective, has done better. So any comment you can share as to your own initiatives and improving that supply and then ultimately less need to buy outside. How do you feel about this? How was it in the last quarter? And how do you feel about it going forward? That would be my first question. I have a quick follow-up as well.

只是想在一些類似的歷史背景下回到 Chicken 並詢問你的表現，特別是因為它與孵化率和孵化率有關，因為它在過去很有趣，似乎表現本身受到非常具體問題的影響你面對的。我們看到這個行業相對疲軟，我想說，在過去的幾周里，但感覺你的表現，至少從數量的角度來看，做得更好。因此，您可以分享關於您自己的舉措和改善供應的任何評論，然後最終減少在外面購買的需要。你覺得這個怎麼樣？上個季度怎麼樣？您如何看待它的發展？那將是我的第一個問題。我也有一個快速跟進。

Okay. I will start off and then I'll flip it for Wes for even greater level of detail. But I would remind you that a couple of years ago, I outlined a road map for us to, what I would call, restore our Chicken business to its rightful position. Those are my exact -- almost my exact words. And we're still on that road map. We've had bumps along the way, in live production, in the life cycle of the animals that we had some issues with some of the breeding stock, particularly the males are not -- has been well chronicled, everywhere.

好的。我會開始，然後我會把它翻轉給 Wes 以獲得更高級別的細節。但我要提醒你，幾年前，我為我們勾畫了一個路線圖，我稱之為，將我們的雞肉業務恢復到其應有的地位。這些是我的原話——幾乎是我原話。我們仍在該路線圖上。我們在現場生產、動物的生命週期中遇到了一些問題，我們在一些種畜方面遇到了一些問題，尤其是雄性沒有——這在任何地方都有很好的記錄。

We had issues with hatch and we're very competitive as it relates to that today. We've made lots of improvement. We've -- we were buying, if you recall, a significant amount of product on the outside and paying a premium in the height of the market. And we began to reduce our dependence on outside meat and wanted to utilize the assets that we have in place and get the fixed cost leverage by producing those live animals and then converting those into those products that our customers and consumers love. And we've done all those things, and we're still on this journey.

我們在孵化方面遇到了問題，而且我們在今天與此相關時非常有競爭力。我們做了很多改進。我們已經——如果你還記得的話，我們在外面購買了大量的產品，並在市場高峰期支付溢價。我們開始減少對外部肉類的依賴，並希望利用我們現有的資產，通過生產這些活體動物然後將其轉化為我們的客戶和消費者喜愛的產品來獲得固定成本槓桿。我們已經完成了所有這些事情，而且我們仍在這段旅程中。

And I would tell you that we got the right people in place to complete that mission, not that you ever implied, but to continue down the road, a great leadership, a great team in place now to do that. And I'm excited. I'm optimistic about the future of our Chicken business and where it's going and even in this quarter, losing $166 million. I'm still excited about the future of the #1 brand in Chicken and the opportunity that we still have before us. Wes?

我會告訴你，我們有合適的人來完成這項任務，不是你曾經暗示過的，而是要繼續前進，一個偉大的領導，一個偉大的團隊現在已經到位來做到這一點。我很興奮。我對我們雞肉業務的未來及其發展方向持樂觀態度，甚至在本季度虧損 1.66 億美元。我仍然對雞肉中排名第一的品牌的未來以及我們面前的機會感到興奮。韋斯？

Yes. Thanks for the question, Ben. The whole industry is not seeing the kind of hatch rates we saw 4 or 5 years ago. Ours, in particular, is down a few points from Q1, but not near the volatility that we're seeing in the industry as a whole. And so we have a more stable, predictable supply chain to include our hatch rate that makes it easier to manage going forward. As for outside buy, we'll continue to buy and grow as we have fluctuations in our demand, but much more imbalanced than in years passed.

是的。謝謝你的問題，本。整個行業都沒有看到我們 4 或 5 年前看到的那種孵化率。特別是我們的數據比第一季度下降了幾個點，但不接近我們在整個行業中看到的波動。因此，我們擁有一個更穩定、更可預測的供應鏈，包括我們的孵化率，這使得未來的管理更容易。至於外部購買，隨著需求的波動，我們將繼續購買和增長，但比過去幾年更加不平衡。

Perfect. And then just a second question just around capital allocation. Obviously, you've reduced the CapEx a little bit, but at the same time, because of the loan, you got a little higher interest. You did some share repurchases throughout the quarter. How should we think about for the balance of the year also in light of what Adam pointed out as leverage could go somewhere north of 4x. How should we think about share purchases, dividends, further CapEx and ultimately, M&A, which is also something that kind of popped up during the quarter. So just to understand the priorities here.

完美的。然後是關於資本配置的第二個問題。顯然，您已經減少了一點資本支出，但與此同時，由於貸款，您獲得了更高的利息。你在整個季度都進行了一些股票回購。鑑於 Adam 指出的槓桿率可能超過 4 倍，我們應該如何考慮今年餘下的時間。我們應該如何考慮股票購買、股息、進一步的資本支出以及最終的併購，這也是本季度突然出現的事情。所以只是為了了解這裡的優先事項。

Yes. Sure thing, and thanks for the question. Let me just talk about the priorities and then talk about where we are in the year and what the outlook is. So first and foremost, we're always looking to invest in our business. And I think it's important to recognize that the CapEx deployment wave that we're in right now is typically higher than our historical average. Over the long run, something more like $1.5 billion is what we would target on an annual CapEx number. So I think that as we go into the coming years, we'll trend in that direction.

是的。當然可以，謝謝你的提問。讓我先談談優先事項，然後談談我們今年的進展情況和前景。因此，首先也是最重要的是，我們一直在尋求投資於我們的業務。而且我認為重要的是要認識到我們現在所處的資本支出部署浪潮通常高於我們的歷史平均水平。從長遠來看，我們的年度資本支出數字目標是 15 億美元左右。所以我認為，隨著我們進入未來幾年，我們將朝著這個方向發展。

And then we look at strategic M&A where we can. We've been pretty, I think, thoughtful in that approach. We're really pleased about the Williams deal and see that as a valuable part of investing in our business. And then on the returning cash to shareholders, we remain committed to the dividend and share repurchases, I think, we'll continue to be conservative and look at something that's in line with historical norms. Obviously, there are a lot of different variables that go into that on a quarterly or annual basis as we make those choices.

然後我們會在可能的情況下研究戰略併購。我認為，我們在這種方法上一直很周到。我們對威廉姆斯的交易感到非常高興，並將其視為投資我們業務的重要組成部分。然後在向股東返還現金方面，我們仍然致力於派息和股票回購，我認為，我們將繼續保持保守，並著眼於符合歷史規範的事情。顯然，在我們做出這些選擇時，每季度或每年都會有很多不同的變量。

But yes, I think just where we are with the profitability outlook in the business, kind of the CapEx cycle and the borrowing, we're conscious of and aware that our leverage ratio will tick up. But again, we're kind of making choices and decisions around investments for the long term of this business. So we're comfortable, although we don't like the tick up. We're comfortable with these cycles where leverage ratios may be a little bit elevated compared to our longer-term target.

但是，是的，我認為正是我們在業務盈利前景、資本支出週期和借貸方面所處的位置，我們意識到並意識到我們的槓桿率將會上升。但同樣，我們正在圍繞這項業務的長期投資做出選擇和決定。所以我們很舒服，雖然我們不喜歡滴答作響。我們對這些週期感到滿意，與我們的長期目標相比，槓桿率可能會略有升高。

And our next question comes from Michael Lavery from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Michael Lavery。

I just wanted to come back to the idea of growth versus profitability and just how to think about balancing that, not just for one segment, but broadly, and I guess just with so many of the headwinds you're pointing to broad in the macro environment and without really much change ahead in terms of -- it sounded like it's going to get better very soon, does that impact how you think about maybe different priorities to improve profitability? Or just to make sure the margins come through better as much as you have some things you can control? Or what's the right way to think about some of that in terms of just -- any investment trade-offs or ways to maybe improve the execution a little bit?

我只是想回到增長與盈利的想法，以及如何考慮平衡這一點，不僅僅是針對一個細分市場，而是更廣泛的，我猜你指的是宏觀領域的許多不利因素環境並沒有真正的變化 - 聽起來它很快就會變得更好，這是否會影響你對提高盈利能力的不同優先事項的看法？或者只是為了確保利潤率在您可以控制的情況下獲得更好的收益？或者，從任何投資權衡或可能稍微改善執行力的方式來考慮其中的一些問題的正確方法是什麼？

Yes. Thanks for that question. And first thing I would tell you is that just to acknowledge the macro environment and what it's been and the fact that the magnitude and the duration of the challenges, they do continue. However, if you think about this company, in particular, we've had a 90-year history of successfully managing macroeconomic cycles, and we've always come out stronger. We have never been able to control those cycles and what we can do is control what we can control. And there's a lot of opportunity there for us to be better. And we are obviously focused on that and across all businesses and functions.

是的。謝謝你的問題。我要告訴你的第一件事是，承認宏觀環境及其過去的情況，以及挑戰的規模和持續時間這一事實，它們確實會繼續存在。但是，如果你特別想一想這家公司，我們在成功管理宏觀經濟周期方面擁有 90 年的歷史，而且我們總是變得更強大。我們從來無法控制這些週期，我們能做的就是控制我們能控制的。我們有很多機會變得更好。我們顯然專注於這一點以及所有業務和職能。

In terms of growth at any cost, that's not what we're talking about here. The growth that we have is in service to our customers and those consumers. And I think as Wes had mentioned this earlier, that we always start with the demand plan, and we work back to a supply plan and so we wouldn't be growing Chicken, Beef or Pork or Prepared Foods for that matter, if we didn't have a demand plan that says that we have a consumer wanting this.

就不惜一切代價實現增長而言，這不是我們在這裡談論的內容。我們的增長在於為我們的客戶和那些消費者提供服務。我認為正如 Wes 之前提到的那樣，我們總是從需求計劃開始，然後我們回到供應計劃，所以如果我們不這樣做，我們就不會種植雞肉、牛肉或豬肉或預製食品'有一個需求計劃說我們有一個消費者想要這個。

And then the second part of that is we obviously had no intention of just growing for growth's sake, and -- but we always balance growth with profitability, and I wouldn't expect this time to be any different than that. But we see this as -- this cycle as something we've seen before, and we've always accelerated out of these types of cycles, and we -- in a growth pattern, accelerating out of the curve, if you will and that's what we're doing this time as well.

然後第二部分是我們顯然無意為了增長而增長，而且 - 但我們始終在增長與盈利之間取得平衡，我認為這次不會有任何不同。但我們認為這是——這個週期是我們以前見過的，我們一直在加速擺脫這些類型的周期，而且我們——以一種增長模式，加速走出曲線，如果你願意的話，那就是我們這次也在做什麼。

And I think if I can add on to what Donnie is saying, just to emphasize growth and the focus on high-quality growth. We've just completed a fifth consecutive quarter of record sales growth. The same is true for the Chicken segment and the Prepared Foods segment. And we're growing in the parts of those businesses that we see as attractive from a margin standpoint.

而且我認為如果我可以補充 Donnie 所說的話，只是為了強調增長和對高質量增長的關注。我們剛剛連續第五個季度實現創紀錄的銷售增長。雞肉部分和預製食品部分也是如此。從利潤率的角度來看，我們在那些我們認為具有吸引力的業務中正在增長。

And of course, in poultry, as we've talked about, part of that has to do a little bit with just you getting the capacity utilization footprint back, right? And then it's also worth pointing out that we got a business outside of the U.S. that is trending towards tripling in about 5 years. And so I think as we think about the long term, that becomes a profit engine for us, and we're excited about the investments we've made there as well.

當然，正如我們所討論的，在家禽業中，部分原因與恢復產能利用率有關，對吧？然後還值得指出的是，我們在美國以外的地區開展了一項業務，該業務的趨勢是在大約 5 年內增長兩倍。所以我認為，當我們考慮長期時，這會成為我們的利潤引擎，我們也對我們在那裡所做的投資感到興奮。

And ladies and gentlemen, with that, we'll be ending today's question-and-answer session. I'd like to turn the floor back over to Donnie King for any closing remarks.

女士們先生們，我們將結束今天的問答環節。我想將發言權轉回給 Donnie King，聽取任何結束語。

Thank you. And as you've heard today, this is a challenging moment, but my optimism about the future has not changed. Our customers and consumers are behind us. We're winning with both. This is not an accident, but is a result of the hard work our team members do every day. And I thank them for it. As we continue to build a world-class organization positioned to take advantage of the opportunities in front of us, we remain confident that our strategy will deliver long-term growth and shareholder value. Thanks for your interest in Tyson Foods, and we look forward to speaking soon.

謝謝。正如你今天所聽到的，這是一個充滿挑戰的時刻，但我對未來的樂觀態度並沒有改變。我們的客戶和消費者支持我們。我們兩者都贏了。這不是偶然，而是我們團隊成員每天辛勤工作的結果。我為此感謝他們。隨著我們繼續建設一個世界級的組織，定位於利用我們面前的機會，我們仍然相信我們的戰略將帶來長期增長和股東價值。感謝您對泰森食品的關注，我們期待很快的交流。

Ladies and gentlemen, the conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.

女士們，先生們，會議現已結束。我們感謝您參加今天的演講。您現在可以斷開線路。