泰森食品 (TSN) 2024 Q2 法說會逐字稿

Good day, and welcome to the Tyson Foods Second Quarter 2024 Earnings Conference Call.

美好的一天，歡迎參加泰森食品 2024 年第二季度收益電話會議。

(Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Sean Cornett, Investor Relations. Please go ahead.

（操作員說明）請注意，正在記錄此事件。我現在想將會議交給投資者關係部門的 Sean Cornett。請繼續。

Good morning, and welcome to Tyson Foods' Fiscal Second Quarter 2024 Earnings Conference Call.

早安，歡迎參加泰森食品 2024 年第二季財報電話會議。

On today's call, Tyson's President and Chief Executive Officer, Donnie King; and Chief Financial Officer, John R. Tyson, will provide some prepared remarks followed by Q&A. Additionally, joining us today are Brady Stewart, Group President, Beef, Pork and Chief Supply Chain Officer; Melanie Boulden, Group President, Prepared Foods and Chief Growth Officer; Wes Morris, Group President, Poultry; and Amy Tu, President, International.

在今天的電話會議上，泰森食品總裁兼執行長唐尼金 (Donnie King) 表示：首席財務官約翰·R·泰森 (John R. Tyson) 將提供一些準備好的發言，然後進行問答。此外，今天加入我們的還有牛肉、豬肉業務集團總裁兼首席供應鏈長 Brady Stewart； Melanie Boulden，預製食品集團總裁兼首席成長長； Wes Morris，家禽業務集團總裁；以及國際總裁 Amy Tu。

We also have provided a supplemental presentation, which may be referenced on today's call and is available on Tyson's Investor Relations website via the link in our webcast. 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.

我們還提供了補充演示文稿，可在今天的電話會議中參考，並可透過我們網路廣播中的連結在泰森食品投資者關係網站上取得。在今天的電話會議中，我們將就我們對未來的期望發表前瞻性聲明。本次電話會議期間所做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。 ，這些評論與我們無關僅限於歷史時期。

These forward-looking statements are subject to 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. 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 reconciliation of these non-GAAP measures to the corresponding GAAP measures, please refer to our earnings press release.

這些前瞻性陳述受到風險、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有重大差異。請參閱投影片 2 上的前瞻性聲明免責聲明以及我們向 SEC 提交的文件，以了解有關可能導致我們的實際結果與我們的預測有重大差異的風險因素的更多資​​訊。我們不承擔更新任何前瞻性陳述的義務。請注意，除非另有說明，否則我們的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 衡量標準與相應 GAAP 衡量標準的調節，請參閱我們的收益新聞稿。

Now I'll turn the call over to Donnie.

現在我將把電話轉給唐尼。

Thanks, Sean, and thank you to everyone for joining us this morning.

謝謝肖恩，也謝謝大家今天早上加入我們。

I'm pleased with our performance in Q2, and I want to thank our team members for their ongoing commitment to driving operational excellence. We've certainly come a long way from where we were a year ago and wouldn't be where we are today without their hard work. Our momentum continues to strengthen, and all of our businesses are running better today than they were last year. Our results this quarter are part of a solid performance in the first half of fiscal 2024 compared to the first half of last year. Adjusted EPS and adjusted operating income are both up nearly 60%, while operating cash flow increased by more than 50% and CapEx decreased by more than 40%. This performance gives us confidence in our improved outlook for the fiscal year and in our long-term future.

我對我們第二季的表現感到滿意，我要感謝我們的團隊成員對推動卓越營運的持續承諾。與一年前相比，我們確實取得了很大的進步，如果沒有他們的辛勤工作，我們就不會取得今天的成績。我們的勢頭繼續增強，今天我們所有的業務都比去年運作得更好。與去年上半年相比，我們本季的業績是 2024 財年上半年穩健業績的一部分。調整後每股盈餘和調整後營業收入均成長近60%，而經營現金流增加超過50%，資本支出下降超過40%。這項業績讓我們對本財年和長期未來的改善前景充滿信心。

As you saw in our results, tailwinds in Chicken again offset headwinds in Beef as we benefit from our multi-protein portfolio. While we're not immune to the macro environment, we are taking steps to reduce our exposure to commodity markets. We are expanding our offerings in seasoned and marinated meats to value up our portfolio across Beef, Pork and Chicken to provide consumers convenience and new flavor options. Across our brands, we are focusing on meeting the consumers where they are by offering convenient restaurant-quality food options at home.

正如您在我們的結果中看到的那樣，雞肉的順風再次抵消了牛肉的逆風，因為我們受益於我們的多蛋白質產品組合。雖然我們無法免受宏觀環境的影響，但我們正在採取措施減少對大宗商品市場的曝險。我們正在擴大調味和醃製肉類的產品範圍，以提升我們的牛肉、豬肉和雞肉產品組合的價值，為消費者提供便利和新的風味選擇。在我們的各個品牌中，我們致力於透過在家中提供便利的餐廳品質食品選擇來滿足消費者的需求。

We are a leader in protein with some of the most iconic brands in food with offerings that span the value spectrum. This is why our share remains healthy despite a more challenging environment for consumers. We continue to support our brands through efficient marketing, effective innovation and strong partnerships with our customers. We continue to build financial strength by being disciplined in our capital deployment to improve cash flow and position us well to tackle challenges and capture opportunities. We also continue to take bold actions to improve performance and drive long-term value for shareholders, and I remain highly confident in our strategy and optimistic about our future.

我們是蛋白質領域的領導者，擁有一些最具代表性的食品品牌，提供涵蓋各種價值範圍的產品。這就是為什麼儘管消費者的環境更具挑戰性，我們的份額仍保持健康。我們繼續透過高效的營銷、有效的創新以及與客戶的強大合作夥伴關係來支持我們的品牌。我們透過嚴格的資本部署來繼續增強財務實力，以改善現金流，並使我們能夠應對挑戰並抓住機會。我們也繼續採取大膽行動來提高業績並為股東帶來長期價值，我對我們的策略充滿信心並對我們的未來保持樂觀。

Now let's delve into an update on market share. At Tyson Foods, we have a broad portfolio of offerings across foodservice and retail at a range of price points to meet consumers where they are, even as they manage through a challenging macro environment. We also have some of the strongest and most iconic brands across food and beverage behind the Tyson, Jimmy Dean and Hillshire Farm names, which allows us to make efficient choices to maintain margin, while strengthening our shelf position. We see this in the strength of our dollar share in our core business lines, which we believe reflects the quality of our share position. Since Q2 of fiscal 2019, we've added 400 basis points of dollar share in our core business lines.

現在讓我們深入研究一下市場份額的最新情況。在泰森食品，我們在食品服務和零售領域提供各種價格的廣泛產品組合，以滿足消費者的需求，即使他們正在應對充滿挑戰的宏觀環境。我們還擁有 Tyson、Jimmy Dean 和 Hillshire Farm 等食品和飲料領域最強大、最具標誌性的品牌，這使我們能夠做出有效的選擇來維持利潤，同時加強我們的貨架地位。我們從核心業務中美元份額的實力中看到了這一點，我們認為這反映了我們份額地位的品質。自 2019 財年第二季以來，我們的核心業務線的美元份額增加了 400 個基點。

While our share is down modestly versus last year as we lap some record performance, we have gained dollar share over each of the past 3 quarters. Our core bacon brands, Wright and Jimmy Dean have contributed to this recent growth. In fact, our dollar share in bacon for Q2 was at a record high level over the past 5 years, and we were the fastest growing in the category during the quarter. I'm excited about our opportunities in bacon and expect our share to continue improving as our new bacon facility that opened in January ramps up. The value proposition of our iconic brands resonate strongly with our consumers, and our market share and household penetration rates remain healthy. We continue to have opportunity to expand the household penetration of our great brands, leaving room for continued share growth over the long run.

雖然我們的份額與去年相比略有下降，因為我們取得了一些創紀錄的業績，但我們在過去三個季度的每個季度都獲得了美元份額的增長。我們的核心培根品牌 Wright 和 Jimmy Dean 為近期的成長做出了貢獻。事實上，第二季度我們在培根中的美元份額達到了過去 5 年來的最高水平，並且我們是本季度該類別中增長最快的。我對我們在培根領域的機會感到興奮，並希望隨著我們一月份開業的新培根工廠的擴大，我們的份額將繼續提高。我們標誌性品牌的價值主張與消費者產生強烈共鳴，我們的市場佔有率和家庭滲透率保持健康。我們繼續有機會擴大我們偉大品牌的家庭滲透率，為長期的持續成長留下空間。

Moving on to the segment performance, starting with Prepared Foods. Consumers' focus on value continues to impact our retail volumes. However, our share remains healthy. And as I mentioned, we are gaining dollar share in bacon. Our volumes outside of retail continue gaining traction as we strive to grow this business with a focus on customer diversification and margin-accretive channels. Operational efficiencies and lower raw material costs drove solid profitability both in Q2 and the first half of fiscal '24.

接下來是細分市場的表現，從預製食品開始。消費者對價值的關注持續影響著我們的零售量。然而，我們的份額仍然保持健康。正如我所提到的，我們正在獲得培根的美元份額。隨著我們努力發展這項業務，並專注於客戶多元化和利潤成長管道，我們的零售以外業務量繼續受到關注。營運效率和較低的原物料成本推動了第二季和 24 財年上半年的穩健獲利。

In Chicken, the momentum established in the second half of fiscal '23 continued in Q2. In fact, versus the second quarter of last year, AOI increased more than $325 million. While we are benefiting from better market conditions, including lower grain costs, our bold actions and focus on the fundamentals are also evident in our results. We have made progress across the value chain. Our live operations are substantially better. We've improved yield, labor efficiencies and utilization in our plants. Our demand planning and customer service have also taken significant steps forward. When our live operations are running well and our demand plan is more accurate, we can operate more efficiently and better service our customers. In summary, our focus on getting back to the basics in Chicken is working.

在雞肉方面，第二季度延續了 23 財年下半年建立的勢頭。事實上，與去年第二季相比，AOI 增加了超過 3.25 億美元。雖然我們受益於更好的市場條件，包括較低的糧食成本，但我們的大膽行動和對基本面的關注也體現在我們的業績中。我們在整個價值鏈上都取得了進展。我們的現場運作明顯更好。我們提高了工廠的產量、勞動效率和利用率。我們的需求規劃和客戶服務也取得了重大進展。當我們的現場營運運作良好並且我們的需求計劃更加準確時，我們就可以更有效率地運作並更好地服務客戶。總而言之，我們對回歸 Chicken 基礎知識的關注正在發揮作用。

As you all know, in Beef, limited cattle supplies led to spread compression. Despite some quarterly volatility reflecting market conditions, our results for the first half of fiscal year have come in as we expected. Our goal remains to offset some of the challenges of a tight cattle supply environment by focusing on the controllables, such as labor utilization and managing mix to meet customer and consumer demand.

眾所周知，在牛肉方面，有限的牛供應導致價差壓縮。儘管季度波動反映了市場狀況，但我們上半財年的業績符合我們的預期。我們的目標仍然是透過專注於可控因素（例如勞動力利用率和管理組合）來抵消牲畜供應緊張環境帶來的一些挑戰，以滿足客戶和消費者的需求。

Turning to Pork. Better spreads and ongoing operational execution led to improved profitability in the quarter in the first half of the year. As you may have seen, we made the difficult decision to close one of our pork facilities. This is part of our efforts to optimize our footprint and improve performance by reallocating resources to nearby more efficient plants, while improving mix and better serving our customers.

轉向豬肉。更好的利差和持續的營運執行導致上半年該季度的獲利能力提高。正如您可能已經看到的，我們做出了關閉一處豬肉工廠的艱難決定。這是我們透過將資源重新分配到附近更有效率的工廠來優化我們的足跡和提高績效的努力的一部分，同時改善組合併更好地為我們的客戶服務。

Now let me take a step back and talk about our recent corporate rebranding initiative. We launched a new corporate logo earlier this year that captures our One Team, One Tyson Spirit. It encompasses our differentiated capabilities and scale and our diverse portfolio across channels, categories and eating occasions. Our Tyson Foods corporate logo represents our company's legacy and our team's purpose, which is to feed the world like family.

現在讓我退一步談談我們最近的企業品牌重塑計畫。今年早些時候，我們推出了一個新的企業標誌，體現了我們的「同一個團隊、同一個泰森精神」。它涵蓋了我們差異化的能力和規模，以及我們跨通路、品類和飲食場合的多樣化產品組合。我們的泰森食品公司標誌代表了我們公司的傳統和我們團隊的宗旨，即像家人一樣養活世界。

Our approach to driving long-term value hasn't changed and is built on a core of 3 key pillars. First, we are fortifying our foundation of core proteins. We strive to be best-in-class operators while continuing to look for ways to value up our portfolio. Second, we are building our brands by delivering innovation for new occasions, categories and channels to better serve consumers. Today, we have 3 of the top 10 protein brands with room to expand our household penetration. Brands are our best opportunity to drive faster growth, higher margins and stronger returns. Third, we're growing globally. Our international business grew revenue eightfold to $2.5 billion over the 5 years through fiscal '23.

我們推動長期價值的方法沒有改變，並且建立在三個關鍵支柱的核心上。首先，我們正在強化核心蛋白的基礎。我們努力成為一流的營運商，同時繼續尋找提升我們投資組合價值的方法。其次，我們透過針對新場合、品類和通路的創新來打造我們的品牌，以更好地服務消費者。如今，我們擁有十大蛋白質品牌中的 3 個，還有擴大家庭滲透率的空間。品牌是我們推動更快成長、更高利潤和更強回報的最佳機會。第三，我們正在全球發展。截至 23 財年的 5 年裡，我們的國際業務營收成長了八倍，達到 25 億美元。

We expect to drive profitable growth over time by capturing expanding consumer markets, particularly in Asia, and we believe we are well positioned to win. These strategic pillars are supported by key enablers of operational excellence, customer and consumer obsession, along with data and digital. A key element of operational excellence is to gain enterprise scale and unlock savings in our controllables by modernizing our operations and driving performance to standards. We win with our customers by building long-term partnerships and delivering top-tier experiences. We enrich consumers' lives by creating best-in-class marketing and innovation. Finally, we continue to build our digital capabilities utilizing data, automation and AI tech for better decision-making and outcomes.

我們希望透過佔領不斷擴大的消費市場（尤其是亞洲市場）來推動利潤成長，並且我們相信我們已經做好了獲勝的準備。這些策略支柱得到了卓越營運、客戶和消費者關注以及數據和數位化等關鍵推動因素的支持。卓越營運的關鍵要素是透過營運現代化和將績效提高到標準來擴大企業規模並節省可控因素。我們透過建立長期合作夥伴關係和提供頂級體驗來贏得客戶。我們透過創造一流的行銷和創新來豐富消費者的生活。最後，我們繼續利用數據、自動化和人工智慧技術來建立我們的數位能力，以實現更好的決策和結果。

Before I hand it over to John to review our financial performance, let me remind you of our priorities this year, where we focused on controlling the controllables. Our results for the first half of the year clearly shows that we are controlling our CapEx and working capital to drive strong cash flow. Another priority is to optimize our footprint and network. We've closed the last of the 6 chicken facilities that we announced in 2023, along with the 2 case-ready beef facilities. And as mentioned earlier, we are closing one of our pork plants.

在我將其交給約翰審查我們的財務表現之前，讓我提醒您今年的優先事項，我們的重點是控制可控因素。我們上半年的業績清楚地表明，我們正在控制資本支出和營運資本，以推動強勁的現金流。另一個優先事項是優化我們的足跡和網路。我們已經關閉了 2023 年宣布的 6 個雞肉工廠中的最後一個，以及 2 個整箱牛肉工廠。正如前面提到的，我們正在關閉我們的一家豬肉工廠。

We're also focused on operational excellence by restoring performance in Chicken, strengthening Prepared Foods, managing Beef through a difficult cattle cycle and driving efficiencies in Pork. As you have seen in our results so far this year, we are making tangible progress in all these areas.

我們也致力於透過恢復雞肉性能、加強預製食品、管理牛肉度過艱難的養牛週期以及提高豬肉效率來實現卓越運營。正如您在今年迄今為止的業績中看到的那樣，我們在所有這些領域都取得了切實的進展。

With that, I'll turn the call over to John.

這樣，我就把電話轉給約翰。

Thanks, Donnie. I'll start with an overview of our total company results before moving on to our individual segments. Sales in Q2 were essentially in line year-over-year at $13.1 billion as a decrease in Chicken was nearly offset by an increase in Beef. Adjusted operating income increased $341 million year-over-year to $406 million, driven primarily by significant improvement in Chicken profitability. Operational performance and substantially higher AOI led to a $0.66 increase in adjusted EPS, which came in at $0.62 in Q2.

謝謝，唐尼。我將首先概述我們公司的整體業績，然後再討論我們的各個部門。第二季的銷售額與去年同期基本持平，為 131 億美元，因為雞肉的減少幾乎被牛肉的增加所抵消。調整後營業收入年增 3.41 億美元，達到 4.06 億美元，主要是由於雞肉獲利能力的顯著改善。營運績效和大幅提高的 AOI 導致調整後每股收益增加 0.66 美元，第二季為 0.62 美元。

Now let's review our segment results, starting with Prepared Foods. In Prepared Foods, Q2 revenue was down slightly year-over-year. Volume growth was led by benefits from the Williams acquisition. The pricing decline reflects the mix impact of the lower contribution from retail. AOI in Q2 was down modestly versus last year. Lower raw material costs and operational efficiencies were more than offset by start-up costs and mix. Despite the decline in AOI, our margin for the first half of the fiscal year remained in the low double digits.

現在讓我們回顧一下我們的細分市場結果，從預製食品開始。在預製食品領域，第二季營收較去年同期略有下降。銷售成長得益於威廉斯收購帶來的好處。定價下降反映了零售貢獻下降的綜合影響。第二季的 AOI 與去年相比略有下降。較低的原材料成本和營運效率被啟動成本和組合所抵消。儘管 AOI 下降，我們本財年上半年的利潤率仍維持在較低的兩位數。

Moving to Chicken. Sales in Q2 declined 8.2% year-over-year, primarily due to lower volume. Volume declined 6.1%, driven by lower production as we better aligned our supply to customer demand, while the 2.1% reduction in pricing was due in part to the pass-through of lower input costs. Despite the decline in sales, AOI increased $326 million year-over-year to $160 million. The benefits of our strategic actions and the substantial operational improvements we've executed since last year are clear. Market conditions, including lower input costs, net of pass-through pricing and a better supply-demand balance were also key contributors to improved profitability. The current quarter results include a $55 million derivative loss compared to a $35 million loss in the year ago quarter. As a reminder, our grain hedging program is part of an overarching risk management strategy and not a speculative tool.

轉向雞肉。第二季銷售額年減 8.2%，主要是因為銷售量下降。由於我們更好地根據客戶需求調整供應，導致產量下降，銷售量下降了 6.1%，而價格下降 2.1% 的部分原因是投入成本下降。儘管銷售額下降，AOI 仍年增 3.26 億美元，達到 1.6 億美元。自去年以來我們實施的策略行動和實質營運改善的好處是顯而易見的。市場條件，包括較低的投入成本、扣除轉嫁定價和更好的供需平衡，也是提高獲利能力的關鍵因素。本季業績包括 5,500 萬美元的衍生性商品損失，而去年同期的損失為 3,500 萬美元。提醒一下，我們的糧食對沖計畫是整體風險管理策略的一部分，而不是投機工具。

In our Beef segment, revenue was up 7.3% year-over-year in Q2, with both volume and pricing increases. The 2.8% increase in volume was primarily driven by higher average carcass weights, while pricing increased 4.5%. While revenue increased, AOI decreased versus last year, primarily reflecting compressed spreads as expected. This more than offset continued progress on our operational efficiencies, including better labor utilization and better management of product mix to meet customer and consumer demand.

在我們的牛肉領域，第二季度營收年增 7.3%，銷量和價格均有所增長。銷量成長 2.8% 主要是由於平均胴體重量增加，而價格成長了 4.5%。雖然收入有所增加，但 AOI 與去年相比有所下降，主要反映了價差按預期壓縮。這遠遠抵消了我們在營運效率方面的持續進步，包括更好的勞動力利用率和更好的產品組合管理，以滿足客戶和消費者的需求。

Moving to Pork. Q2 revenue increased 4.6%, driven by volume growth and higher pricing. Volume growth of 2.9% was led by more plentiful hog supply. Pricing improved due to healthy global demand. AOI also increased year-over-year going from a loss of $31 million last year to a profit of $33 million this year in Q2, benefiting primarily from improved spreads and better operational execution. Year-to-date, pork AOI has improved $151 million.

轉向豬肉。在銷售成長和定價上漲的推動下，第二季營收成長 4.6%。生豬供應更加充足，帶動銷售成長 2.9%。由於全球需求健康，定價有所改善。 AOI 也較去年同期成長，從去年的虧損 3,100 萬美元增至今年第二季的利潤 3,300 萬美元，主要得益於點差的改善和營運執行的改善。今年迄今為止，豬肉 AOI 已提高 1.51 億美元。

Finally, our International Business continues to make progress towards stronger profitability. AOI increased versus last year as we begin to lap some of the start-up costs of our newer facilities and continue to focus on operational execution.

最後，我們的國際業務持續取得進步，實現更強的獲利能力。隨著我們開始消化新設施的一些啟動成本並繼續關注營運執行，AOI 與去年相比有所增加。

Shifting to our financial position and capital allocation. Year-to-date showcased strong operating cash flow of approximately $1.2 billion as we continue to manage working capital. We remain very disciplined with CapEx, which came in at $621 million for the first half. The $267 million in CapEx for Q2 was the lowest quarterly spend in several years and represents the fifth quarter in a row of sequential decline as we lap our elevated CapEx from the previous 2 fiscal years and focus on controlling where and when we deploy capital. Year-to-date, free cash flow of $556 million, increased nearly $900 million versus the first half of last year and was more than $200 million ahead of our year-to-date dividend payments.

轉向我們的財務狀況和資本配置。隨著我們繼續管理營運資金，年初至今，我們的營運現金流強勁，約 12 億美元。我們對資本支出仍然非常嚴格，上半年資本支出為 6.21 億美元。第二季的資本支出為2.67 億美元，是多年來最低的季度支出，也是連續第五個季度出現連續下降，因為我們擺脫了前兩個財年增加的資本支出，並專注於控制我們部署資本的地點和時間。年初至今，自由現金流為 5.56 億美元，比去年上半年增加了近 9 億美元，比年初至今的股息支付多了 2 億美元。

Our balance sheet management approach remains unchanged as we are committed to building financial strength, investing in our business and returning cash to shareholders, while maintaining our investment-grade credit rating and returning net leverage to at or below 2x net debt to EBITDA. Our net leverage again declined sequentially, coming in at 3.6x in Q2, driven by improving last 12 months EBITDA, and we expect it to continue to improve for the balance of the year.

我們的資產負債表管理方法保持不變，因為我們致力於增強財務實力、投資於我們的業務並向股東返還現金，同時維持我們的投資級信用評級並將淨槓桿率返還至EBITDA 淨債務的2倍或以下。在過去 12 個月 EBITDA 改善的推動下，我們的淨槓桿率再次連續下降，第二季為 3.6 倍，我們預計今年剩餘時間將繼續改善。

We ended Q2 with $4.4 billion of liquidity. As you may have seen from our press release in March, we successfully raised $1.5 billion in new senior notes, and we paid down a portion of our term loans. We plan to use the remaining proceeds to retire our outstanding notes coming due this August. We remain committed to maintaining a disciplined yet opportunistic capital allocation strategy, ensuring that we deploy resources to maximize long-term shareholder value.

第二季結束時，我們的流動資金為 44 億美元。正如您可能從我們 3 月的新聞稿中看到的那樣，我們成功籌集了 15 億美元的新高級票據，並償還了部分定期貸款。我們計劃用剩餘的收益來償還今年八月到期的未償票據。我們仍然致力於維持紀律嚴明但機會主義的資本配置策略，確保我們部署資源以實現長期股東價值最大化。

Now let's take a look at our updated outlook for fiscal 2024. We are reiterating our overall sales guidance to be roughly flat year-over-year. However, given our strong year-to-date results, we are raising our AOI guidance driven primarily by an improved outlook for Chicken. For the total company, we now expect between $1.4 billion and $1.8 billion of operating income.

現在讓我們來看看我們對 2024 財年的最新展望。然而，鑑於我們今年迄今的強勁業績，我們提高了 AOI 指引，主要是由於雞肉前景的改善。對於整個公司來說，我們現在預計營業收入將在 14 億至 18 億美元之間。

Moving to the segments. In Chicken, given the strong start in the first half of the year, we continue to believe that there are more tailwinds than headwinds. We are raising our AOI guidance range to be between $700 million and $900 million. Prepared Foods also had a solid first half. In this segment, we are tightening our AOI outlook to be between $850 million and $950 million, indicating a weaker second half of the year, which reflects typical seasonality. In Beef, the first half of fiscal 2024 has progressed in line with our expectations. However, uncertainties remain, including the progression of the cattle cycle, and we now expect our full year AOI to be between a loss of $400 million and a loss of $100 million. In Pork, we've seen solid first half performance and are raising our guidance to be between $50 million and $150 million.

轉向細分市場。在雞肉方面，鑑於上半年的強勁開局，我們仍然認為順風多於逆風。我們正在將 AOI 指引範圍提高到 7 億美元至 9 億美元之間。預製食品上半年也表現強勁。在這一領域，我們將 AOI 前景收緊至 8.5 億美元至 9.5 億美元之間，這表明今年下半年的情況較弱，這反映了典型的季節性。在牛肉方面，2024 財年上半年的進展符合我們的預期。然而，不確定性仍然存在，包括牛週期的進展，我們現在預計全年 AOI 將損失 4 億美元到 1 億美元之間。在豬肉方面，我們看到了上半年的穩健表現，並將我們的指導方針提高到 5000 萬美元至 1.5 億美元之間。

To add some color to the shape of the rest of the year, uncertainties remain around consumer strength and behavior, the progression of the cattle cycle and key commodity costs. When we factor in these variables with Pork and Prepared Foods seasonality, there are reasons to believe that Q3 could be weaker than Q4. To round out the key P&L items, we anticipate interest expense to be roughly $400 million and our tax rate to now be approximately 24%.

為了為今年剩餘時間的情況增添一些色彩，消費者實力和行為、養牛週期的進展和關鍵商品成本仍然存在不確定性。當我們將這些變數與豬肉和預加工食品的季節性因素納入考量時，有理由相信第三季可能弱於第四季。為了完善關鍵的損益項目，我們預期利息支出約為 4 億美元，目前的稅率約為 24%。

Turning to CapEx. We're maintaining tight controls on spending in line with profitability and cash flow, and we are narrowing our CapEx range to be between $1.2 billion and $1.4 billion this year. And finally, on free cash flow, we're committed to managing working capital and CapEx and we're even more confident now that we can fully fund our dividend this year through our free cash flow generation.

轉向資本支出。我們將根據獲利能力和現金流對支出進行嚴格控制，並將今年的資本支出範圍縮小至 12 億美元至 14 億美元之間。最後，在自由現金流方面，我們致力於管理營運資本和資本支出，現在我們更有信心，我們可以透過自由現金流的產生來充分資助今年的股利。

Now I'll turn the call back over to Donnie to wrap up before we move to Q&A.

現在，我將把電話轉回給唐尼，讓其結束，然後再進行問答。

Thanks, John. Before we get to your questions, I'd like to thank our 139,000 team members, who worked tirelessly to feed the world like family and fulfill our mission to bring high-quality food to every table in the world. It is the strength of our team that secures our position as a world-class food company and a recognized leader in protein. Together, we delivered a solid first half, we still have more work to do and believe we have the strategy in place to continue our progress and deliver long-term shareholder value.

謝謝，約翰。在回答您的問題之前，我要感謝我們的 139,000 名團隊成員，他們像家人一樣孜孜不倦地工作，為世界提供食物，並履行我們的使命，將高品質食品帶到世界上的每一張餐桌。正是我們團隊的力量確保了我們作為世界一流食品公司和公認的蛋白質領導者的地位。我們共同取得了堅實的上半年業績，但我們仍有更多工作要做，並相信我們已製定策略來繼續進步並實現長期股東價值。

Now I'll turn the call back over to Sean for Q&A instructions.

現在我將把電話轉回 Sean 以獲取問答說明。

Thanks, Donnie. We will now move 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，唐尼。我們現在將回答您的問題。請記住，我們對前瞻性陳述和非公認會計準則措施的警告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) The first question today comes from Peter Galbo with Bank of America.

（操作員說明）今天的第一個問題來自美國銀行的 Peter Galbo。

Donnie, maybe just to start, you typically gave, I think, kind of an update on the state of the business and things have improved to your -- sequentially at least pretty dramatically. I guess just curious a little bit on 2 things. One, kind of are you happy now with kind of the state of the portfolio and the state of plant closures and asset rationalization? And then secondly, just trying to understand the commentary around Q3 weaker than Q4 seasonally in light of what you've been saying that, that would run kind of counter to what has been the case seasonally for the past, I don't know, 5 or 6 years. So maybe if you can just unpack those 2 areas would be helpful.

唐尼，也許只是開始，我認為，您通常會提供有關業務狀況的最新信息，並且情況已經有所改善，至少是連續相當顯著地改善。我想只是對兩件事有點好奇。第一，您現在對投資組合的狀況以及工廠關閉和資產合理化的狀況感到滿意嗎？其次，根據您所說的，只是試圖理解第三季度季節性弱於第四季度的評論，這與過去季節性的情況背道而馳，我不知道， 5年或6年。因此，如果您能解開這兩個區域的包裝，也許會有所幫助。

Thanks, Peter, and I appreciate everyone for being on this morning. Your first part of your question is essentially am I satisfied? I'm encouraged, I would -- I'd stop short of saying satisfied in terms of the results. I'm proud of the results that we delivered in Q2, and we're seeing the benefits of our diverse portfolio across proteins, channels, categories and eating occasions, where we saw Chicken and Pork are offsetting the headwinds in Beef. In our Q2, our momentum continues to strengthen on all of our businesses, and they're running better today than they were last year.

謝謝彼得，我也謝謝大家今天早上的到來。你問題的第一部分本質上是我滿意嗎？我很受鼓舞，我會——我不會說對結果感到滿意。我對我們在第二季度取得的成果感到自豪，我們看到了我們在蛋白質、管道、類別和飲食場合的多樣化產品組合的好處，我們看到雞肉和豬肉正在抵消牛肉的不利因素。在第二季度，我們所有業務的勢頭繼續增強，今天它們的運作狀況比去年更好。

We've come a long way from where we were a year ago, and my thanks to all of our team members for continued improvement in execution. We're executing against the priorities we laid out for fiscal '24. We are controlling the controllables. We're optimizing our network. We remain focused on operational excellence. We've taken bold actions to drive performance and to build financial strength. We're delivering meaningful results compared to the first half of last year in profitability, cash flow, CapEx in line with historical rates. Our performance has given us confidence to raise our guidance, while acknowledging uncertainties remain, and we have much work to do.

與一年前相比，我們已經取得了很大的進步，我感謝所有團隊成員在執行方面的持續改進。我們正在執行我們為 24 財年制定的優先事項。我們正在控制可控因素。我們正在優化我們的網路。我們仍然專注於卓越營運。我們採取了大膽的行動來提高業績並增強財務實力。與去年上半年相比，我們在獲利能力、現金流量、資本支出方面取得了有意義的成果，符合歷史水準。我們的表現使我們有信心提高指導意見，同時承認不確定性仍然存在，我們還有很多工作要做。

In terms of your specific question around Prepared, let me make a few comments, and then I'll pass it over to Melanie to add some detail. Our results were in line with our expectations. Our brands are strong and our share remains healthy. Persistent inflation is weighing on our bifurcated consumer. Our strategy is to meet the consumer where they are with offerings at various price points.

關於您關於“Prepared”的具體問題，讓我發表一些評論，然後我會將其轉交給 Melanie 以添加一些細節。我們的結果符合我們的預期。我們的品牌很強大，我們的市場佔有率也保持健康。持續的通貨膨脹正在給我們兩極化的消費者帶來壓力。我們的策略是透過不同價位的產品來滿足消費者的需求。

In terms of more details, let me flip it over to Melanie to add a little color to your questions.

至於更多細節，讓我把它轉給梅蘭妮，為你的問題增添一點色彩。

So Peter, I think you were asking specifically about our projections for Q3 as well as the rest of the full year. And so I'll just talk specifically about Prepared Foods and let any of the other leaders chime in. So the first half of the year, Prepared Foods delivered $500 million in AOI and you also know that profit delivery in the second half of the year has historically been lower than the first half, and we expect this year to be the same. So therefore, the midpoint of our second half guidance is $400 million. And I also want to point out that historically, Q3 has performed better than Q4, but we're seeing higher commodity costs in Q3, so we expect a pretty even split between the 2 quarters.

彼得，我認為您具體詢問了我們對第三季以及全年剩餘時間的預測。因此，我將專門談論預製食品，並讓其他領導者插話。 ，我們預計今年也將如此。因此，我們下半年指引的中點是 4 億美元。我還想指出，從歷史上看，第三季度的表現優於第四季度，但我們看到第三季度的商品成本更高，因此我們預計這兩個季度之間的比例相當均勻。

Great. Melanie, that's very helpful. Yes, we've gotten certainly a number of questions on that. So thank you for the context. And then Donnie, maybe just as a follow-up. Look, we've had a number of companies this quarter, both in the CPG industry and in restaurants. Just kind of comment on the state of the consumer and low-income consumer. I know that was in some of your prepared remarks, but curious if you could dive a little bit deeper on just your view on food service and some of the channels that you service there. Just any commentary around quick service, casual dining and noncommercial would be helpful.

偉大的。梅蘭妮，這很有幫助。是的，我們確實收到了很多關於此的問題。所以謝謝你的背景。然後唐尼，也許只是作為後續行動。看，本季我們有很多公司，包括消費品產業和餐廳。只是對消費者和低收入消費者狀況的評論。我知道這是您準備好的一些評論中的內容，但我很好奇您是否可以更深入地了解您對餐飲服務以及您在那裡提供服務的一些管道的看法。任何有關快速服務、休閒餐飲和非商業性的評論都會有所幫助。

Melanie, why don't you answer that?

梅蘭妮，為什麼不回答這個問題？

Yes, happy to. So Peter, in both retail and foodservice, as you know, the consumer is under pressure, especially the lower income households. And in retail, we're seeing roughly 20% cumulative inflation over the last 3 years. Now the inflation impact, coupled with historically low savings rate has created a more cautious price-sensitive consumer. And we're also seeing a cautious consumer prioritized essential staples over discretionary categories. Now that said, we're advantaged, in that our protein categories enjoy lower levels of elasticity compared to the broader consumer landscape. And in retail, we're experiencing -- well, I should say, but in retail, we are experiencing a little slippage to private label with lower income households. However, our share remains strong with growth in bacon, snacking and sausage.

是的，很高興。彼得，如你所知，在零售和餐飲服務領域，消費者都面臨壓力，尤其是低收入家庭。在零售業，我們看到過去 3 年的累積通膨率約為 20%。現在通膨的影響，加上歷史上較低的儲蓄率，已經造就了對價格敏感的消費者更加謹慎。我們也看到，謹慎的消費者優先考慮必需品而不是非必需品。話雖如此，我們的優勢在於，與更廣泛的消費者環境相比，我們的蛋白質類別的彈性較低。在零售業，我們正在經歷——嗯，我應該說，但在零售業，我們正在經歷低收入家庭向自有品牌的下滑。然而，隨著培根、零食和香腸的成長，我們的份額仍然強勁。

Now in foodservice, where you specifically noted, we continue to deliver solid performance. but we are seeing shifts from fine dining into QSR. We're also seeing QSR slippage to more meals being consumed at home. But for Tyson, we're advantaged as we serve both in home and away-from-home consumers. The key point, I guess I'd like you to take away from all of this is that we've intentionally built the portfolio diversified across strong brands spanning multiple protein offerings and value tiers, and our scale allows consumers to find our products in multiple places throughout retail and foodservice channels. And this allows us to deliver on our goal of meeting our consumers where they're at, across a variety of value spectrum.

現在，在餐飲服務領域，您特別指出，我們繼續提供穩定的業績。但我們看到了從高級餐飲到快餐的轉變。我們也看到 QSR 下滑，因為更多的人在家吃飯。但對泰森來說，我們的優勢在於我們同時為國內和外地消費者提供服務。我想我希望您從這一切中學到的關鍵點是，我們有意建立了跨越多個蛋白質產品和價值層級的強大品牌的多元化投資組合，並且我們的規模允許消費者在多個領域找到我們的產品。這使我們能夠實現滿足不同價值範圍的消費者需求的目標。

The next question comes from Ben Theurer with Barclays.

下一個問題來自巴克萊銀行的 Ben Theurer。

Congrats on those very outstanding results. Just wanted to dig a little bit into the dynamics in Chicken that you've seen and kind of unpack a little bit the volume performance on the production side. Can you help us to kind of frame it a little bit more? Is it lower head? Is it lower weight? Is it a combination of it? What have you done differently in terms of like adjusting your operations to kind of have those sales down, but at the same time, with a very nice profit spread. And that would be my first question and a quick follow-up.

恭喜這些非常優秀的成績。只是想深入了解您所看到的 Chicken 的動態，並稍微了解一下生產方面的體積性能。你能幫我們再設計一下嗎？是低頭嗎？是不是重量比較輕？是它的組合嗎？您採取了哪些不同的做法，例如調整營運以降低銷售額，但同時獲得非常可觀的利潤差。這是我的第一個問題，也是我快速跟進的問題。

I think I caught all the questions. Let me start out here was -- if I heard correctly, it was a kind of a supply question and then let me talk about that, and I will flip it to Wes to add some very specific details. But in terms of chicken supply, if you look at the publicly available data, USDA has projected chicken supply increased about 1% in 2024. But if you look at the data underneath it, there are some things that you need to get from this. This is a livability and hatchability story for the industry. If you look, pull it and [hen] mortality continues to be elevated. Broiler mortality continues to be elevated. Hatchability continues to be 3% to 5% below historical rates.

我想我已經抓住了所有的問題。讓我從這裡開始——如果我沒聽錯的話，這是一個供應問題，然後讓我談談這個問題，我會把它轉給韋斯，添加一些非常具體的細節。但就雞肉供應而言，如果你看一下公開的數據，美國農業部預計2024年雞肉供應量將增加約1%。這是該行業的宜居性和孵化率故事。如果你看，拉它，[母雞]死亡率繼續升高。肉雞死亡率持續上升。孵化率繼續比歷史水準低 3% 至 5%。

So the net of all that is this. There will be fewer live pounds delivered to the processing plant than forecast. So if I look at that, I believe the supply will be lower than 1% projected by USDA. The other thing I would say with that is this is not a short-term fix. If you remember, we have a genetics company as well. And we've seen some of this activity as well. So this is -- can be a little bit of a longer-term issue. So you ask -- you didn't ask, but I would tell you, at least from our perspective, genetic selection over the last several years have been skewed towards broader characteristics like yield and feed conversion. There has been some impact -- the cumulative impact from no antibiotics ever across the supply chain.

所以所有這一切的網路就是這樣的。運送到加工廠的活磅數量將少於預期。因此，如果我看一下，我相信供應量將低於美國農業部預測的 1%。我要說的另一件事是，這不是短期解決方案。如果你還記得的話，我們也有一家基因公司。我們也看到了其中一些活動。所以這可能是個有點長期的問題。所以你問——你沒有問，但我會告訴你，至少從我們的角度來看，過去幾年的基因選擇已經偏向於更廣泛的特徵，如產量和飼料轉換率。已經產生了一些影響——整個供應鏈中沒有抗生素所帶來的累積影響。

And there's some, I won't say, new disease, but the disease persists, creating mortality in the broiler. There's a new one -- or new to me called Avian metapneumonia virus that's out there. Laryngotracheitis, or LT, is out there today, and there are other things. But I think the supply could be -- will be less than 1% based on the data points I'm looking at and from flat to 0.5% or something along that order.

我不會說有一些新疾病，但這種疾病持續存在，導致肉雞死亡。有一種新病毒──或者對我來說是新病毒，叫做禽偏肺炎病毒。如今，喉氣管炎（LT）已經存在，而且還有其他疾病。但我認為，根據我正在查看的數據點，供應量可能會低於 1%，並且會從持平到 0.5% 或類似的水平。

Let me flip it to Wes and let him talk about our supply and see if that answers your question.

讓我把它轉給韋斯，讓他談談我們的供應，看看這是否能回答您的問題。

Yes, Ben, we certainly see the USDA numbers projecting up 1%, but we're seeing the egg sets up, but slaughter pounds relatively flat. Now the good news is I'm very proud of our live performance. We hashed [82 34] in the quarter, livability is up 50 points year-over-year. And so looking at our live performance and then our S&OP process, our supply-demand group, we're in a good position for the back half of the year to stay balanced, to take care of our customers, and I'm very pleased with our live and supply-demand planning group.

是的，Ben，我們當然看到美國農業部的數字預計將成長 1%，但我們看到雞蛋已經凝固，但屠宰量相對持平。現在好消息是我對我們的現場表演感到非常自豪。我們本季的雜湊值[82 34]顯示，宜居性較去年同期上升了 50 點。因此，看看我們的現場表演，然後是我們的 S&OP 流程、我們的供需小組，我們在今年下半年處於有利位置，可以保持平衡，照顧我們的客戶，我很高興與我們的現場和供需規劃小組一起。

Specifically to Q2 volume, our volume is solid. It's consistent with Q1 and our expectations. Just as a reminder, 2023 is a challenging comparison period. Our pricing is solid. Just as a reminder, we lag a quarter to a quarter plus. And then the other dynamic unique to us is we have quite a few grain-based models that pull pricing down, but it does stabilize our margin.

具體到第二季的銷量，我們的銷量是穩定的。這與第一季和我們的預期一致。提醒一下，2023 年是一個充滿挑戰的比較時期。我們的定價很穩定。提醒一下，我們落後了四分之一到四分之一以上。我們獨特的另一個動態是，我們有許多基於穀物的模型，可以拉低價格，但它確實穩定了我們的利潤。

Okay. Perfect. And then just a quick follow-up on Beef in terms of like what you're seeing on the industry. Have you seen any signs of heifer retention to just what you like getting on the ground to get a better feel on how bad it is still going to get until it might get better? A little bit of the premium maybe into '25.

好的。完美的。然後，根據您在行業中看到的情況，對牛肉進行快速跟進。您是否看到任何跡象表明小母牛保留了您喜歡的東西，以便更好地了解情況在好轉之前仍然會變得多麼糟糕？ 25 年可能會有一點溢價。

Sure, Ben. This is Brady. And thanks for the question. And first of all, I guess, really at a high level, we haven't seen anything relative to any of the industry numbers that have been published that really indicate that true meaningful heifer retention has begun. And so at this point, we can potentially anticipate retention beginning in the fall, but there's some caveats to that. And certainly, as we shift from an El Nino weather pattern to a La Nina, the pasture conditions are extremely important to heifer retention. And there's a potential we could see some drier conditions as well persist. We'll continue to monitor that along with additional metrics around heifer retention and the percentage of heifer that move into slaughter.

當然，本。這是布雷迪。謝謝你的提問。首先，我想，在高水準上，我們還沒有看到任何與已發布的行業數據相關的數據，真正表明真正有意義的小母牛保留已經開始。因此，在這一點上，我們有可能預計從秋季開始保留，但有一些注意事項。當然，當我們從厄爾尼諾天氣模式轉向拉尼娜天氣模式時，牧場條件對於小母牛的保留極為重要。我們也有可能看到一些乾燥的天氣持續存在。我們將繼續監控這種情況以及有關小母牛保留和進入屠宰的小母牛百分比的其他指標。

And then lastly, one of the promising signs would be we have seen a meaningful decline of the number of cows that are going to slaughter, down double digits from '22 and '23, both and so really, we find ourselves what looks like in the midst of a transition pattern, and we'll continue to monitor to understand the timing of that as we move forward.

最後，一個有希望的跡像是，我們已經看到將要屠宰的乳牛數量顯著下降，比 22 年和 23 年下降了兩位數，所以實際上，我們發現自己的情況是這樣的正處於過渡模式之中，隨著我們的前進，我們將繼續監控以了解其時機。

The next question comes from Tom Palmer with Citi.

下一個問題來自花旗銀行的湯姆·帕爾默。

Maybe start off on the Chicken side, at least relative to consensus estimates, the guidance boost would seem to indicate more than just upside in the quarter. So maybe talk on the components that are driving that increased outlook for the second half of the year? I mean it does seem, obviously, like feed is favorable. It seems like the pricing environment it's getting better. And then you've had positive commentary on productivity. So just any help on kind of how much those items are helping, if there are other items to consider? And any quantification, of course, would be appreciated.

也許從雞肉方面開始，至少相對於共識估計，指導性的提升似乎不僅僅表明本季的上行空間。那麼，或許可以談談推動下半年前景改善的因素？我的意思是，顯然，飼料似乎確實是有利的。定價環境似乎正在變得更好。然後你對生產力有了正面的評價。那麼，如果還有其他項目需要考慮，那麼這些項目的幫助有多大？當然，任何量化都將受到讚賞。

Sure. Let me start off, and I will let Wes add a little color to this as well. But one of the things I got to point out is that the focus on the fundamentals that Wes and our Chicken team have had over the past year actually is quite impressive, and that's a result of some of this. I would point out this that there have been some market tailwinds that as far as Chicken is concerned. But of the $325 million that were better year-over-year, more than half of that came from execution type things, such as the footprint and network as well as some of the other tougher decisions that we made.

當然。讓我開始吧，我也會讓韋斯為此添加一點色彩。但我必須指出的一件事是，韋斯和我們的雞肉團隊在過去一年中對基本面的關注實際上令人印象深刻，這是其中一些結果。我想指出的是，就雞肉而言，存在一些市場順風。但在同比增長的 3.25 億美元中，一半以上來自執行類型的事情，例如足跡和網路以及我們做出的其他一些更艱難的決定。

And with that, Wes, why don't you cover some of the more specifics around the program.

那麼，韋斯，你為什麼不介紹一下該計劃的一些更具體的細節呢？

Yes, sure. We're certainly focused on controlling the controllables, and Donnie talked about live operational performance, which includes our network changes. And then probably the biggest change is making sure that we match our supply and demand. We've talked about the lives being better. Our plant performance and network optimization is right on target. Our capacity utilization continues to improve sequentially. We've improved our order fill rate while actually lowering our working capital over $400 million, driven almost exclusively by inventory. Demand solid and '23 is not a very good comp.

是的，當然。我們當然專注於控制可控因素，唐尼談到了即時營運績效，其中包括我們的網路變化。然後最大的變化可能是確保我們的供應和需求相符。我們談論過讓生活變得更好。我們的工廠效能和網路優化完全達到了目標。我們的產能利用率持續改善。我們提高了訂單履行率，同時實際上減少了​​超過 4 億美元的營運資金，這幾乎完全是由庫存驅動的。需求穩定，而 23 並不是一個很好的競爭。

Let me add a little more color to valuing up and our path forward. And so we have our new start-up plant in Danville. It is currently single shifted, and I expect due to demand will be double shifted by the beginning of '25. And so we are running a fundamentally stronger Chicken business. We've got strong [BU] leadership in place and strong future growth plans. So specific to your question, Q1, Q3 are typically our strongest quarters. So good balance front half and back half, grains have moderated, but are still higher than pre-COVID levels. We continue to watch the total protein availability. Obviously, spring and summer are better growing conditions so that should increase some volumes in the industry.

讓我為估值和我們的前進道路添加更多色彩。因此，我們在丹維爾建立了新的新創工廠。目前是單班制，由於需求，我預計到 25 年初將實施雙班制。因此，我們正在經營一個從根本上更強大的雞肉業務。我們擁有強大的 [BU] 領導力和強大的未來成長計劃。具體到你的問題，第一季、第三季通常是我們最強的季度。因此，前半部和後半部的平衡良好，穀物放緩，但仍高於新冠疫情前的水平。我們繼續觀察總蛋白質的可用性。顯然，春季和夏季的生長條件較好，因此該行業的產量應該會增加。

We're also paying real close attention to the consumer behavior and how that may shift our mix. But we will be doing quite a bit of investing in the back half of the year, and our value-added business, where we have a #1 share in both retail and foodservice. And as I said earlier, we're ramping up Danville well ahead of schedule. If I could, I'd like to just reiterate something that to make it really clear in our Chicken business. Our strategy is very simple. It's live performance, excellence in live performance, it's operational execution and matching supply and demand. It's that simple.

我們也非常密切地關註消費者的行為以及這可能如何改變我們的產品組合。但我們將在今年下半年進行大量投資，以及我們的增值業務，我們在零售和餐飲服務領域都佔有第一的份額。正如我之前所說，我們正在提前加速丹維爾的建設。如果可以的話，我想重申一些事情，以便在我們的雞肉業務中真正明確這一點。我們的策略非常簡單。它是現場表演，卓越的現場表演，它是運營執行和匹配的供需。就是這麼簡單。

Right And then maybe a quicker one on Pork. Just with the costs falling, are you seeing any signs that the industry in terms of hog supply making better profits and might start ramping up supply at all or still a bit too early?

對了，然後也許是更快的豬肉。隨著成本下降，您是否看到任何跡象表明該行業在生豬供應方面獲得了更好的利潤，並且可能開始增加供應，或者還為時過早？

Thanks for the question, Tom. Certainly, the compression we've seen on some of the feed stuff has helped move some numbers back to profitability within the industry from a Pork production standpoint, which is certainly good news for our producer partners as well. What we've seen consistently for the last year, which is of importance is we've seen genetic improvement across the entire industry, leading to additional pigs per liter. And when you compound that with the fact that we've seen over the last 10 years, probably the best year relative to true industry herd health. We're seeing ample supply as we move forward as well.

謝謝你的提問，湯姆。當然，從豬肉生產的角度來看，我們看到的一些飼料原料的壓縮有助於使一些數字恢復到行業內的盈利能力，這對我們的生產商合作夥伴來說無疑也是個好消息。去年我們一直看到，這一點很重要，我們看到整個產業的基因改進，導致每公升生豬數量增加。當你將這一點與我們在過去十年中看到的事實結合起來時，這可能是相對於真正的行業群體健康而言最好的一年。隨著我們的前進，我們也看到了充足的供應。

So I'd be speculating if we commented on any potential expansion. But certainly, the environment is set up in a much better position versus last year. But let me be clear, when we look at our business, we really focused on the controllables and have seen good improvements from our Pork business through the first half of the year relative to operational excellence, relative to yields within our assets and relative to our mix management conversions as well. That's really coupled with the fact that we have plenty of runway ahead of us to continue to improve and get better, and that's the expectation as we move forward.

所以我會猜測我們是否對任何潛在的擴張發表評論。但可以肯定的是，環境比去年好得多。但讓我明確一點，當我們審視我們的業務時，我們真正關注的是可控因素，並且看到今年上半年我們的豬肉業務相對於卓越運營、相對於我們資產的收益率以及相對於我們的混合管理轉換也是如此。這確實與我們前面有足夠的跑道來繼續改進和變得更好這一事實相結合，這就是我們前進的期望。

The next question comes from Adam Samuelson with Goldman Sachs.

下一個問題來自高盛的亞當·薩繆爾森。

Maybe continuing on the discussion on controlling the controllables. Donnie, in response to the last question, you talked about kind of improvements in live operations, operational efficiency, kind of matching supply demand. I would just love to get your view on where the company is today and certainly notably improved versus where you were 12, 18 months ago. But where how much -- where can you get it to? How much kind of cost reduction on a per pound or millions of EBIT dollars, do you think is still kind of attainable, excluding changes in the external market environment in the Chicken business?

也許繼續討論控制可控因素。唐尼，在回答最後一個問題時，您談到了現場營運、營運效率、供應需求匹配方面的改進。我很想聽聽您對公司目前狀況的看法，與 12、18 個月前相比，公司的狀況肯定有顯著改善。但是多少錢——你能把它送到哪裡？您認為，排除雞肉業務外部市場環境的變化，每磅或數百萬息稅前利潤可以降低多少成本？

Sure. Let me -- Chicken specifically, but let me start with the -- across the portfolio, just managing working capital and CapEx, driving cash flow and really in support of the dividend. That's still a priority for us and part of the controlling the controllables, optimizing the footprint and network, still a huge priority for us. Restoring Chicken performance is right there at the top and also strengthening our Prepared Foods business, really important to us.

當然。讓我——特別是雞肉，但讓我從——整個投資組合開始，只是管理營運資本和資本支出，推動現金流並真正支持股息。這仍然是我們的首要任務，控制可控因素、優化佔地面積和網路的一部分，仍然是我們的首要任務。恢復雞肉性能是重中之重，同時也加強了我們的預製食品業務，這對我們來說非常重要。

And then managing Beef through the cattle cycle. The unknown around that is, once we do see heifer retention, obviously, you were not going to be processing those animals. So what does that do? And we still got that coming our way and then continue to drive efficiencies in ports. As you stated, versus last year, every business is performing better. We had -- we raised the guidance primarily this quarter based on strong chicken performance, but let me acknowledge that there are still some uncertainties out there relative to the consumer and their strength and behavior, and that's still out there. I mentioned the cattle cycle already. Key commodity markets, what is -- there are tailwinds today, but what do they look like beyond our horizon.

然後透過養牛週期管理牛肉。未知的是，一旦我們確實看到小母牛的保留，顯然，你不會處理這些動物。那它有什麼作用呢？我們仍然做到了這一點，然後繼續提高港口的效率。正如您所說，與去年相比，每家企業的表現都更好。我們主要基於強勁的雞肉表現在本季度提高了指導，但讓我承認，相對於消費者及其實力和行為，仍然存在一些不確定性，而且仍然存在。我已經提到過牛的循環。主要商品市場，今天有順風，但它們在我們的視野之外看起來是什麼樣的。

Pork and Prepared Foods seasonally -- could be seasonally weaker, will be seasonally weaker and then Q3 could be, I say could be weaker than Q4 driven by Prepared and Pork. Chicken. Chicken is -- we're seeing better execution in our Chicken business, and we've seen some time better capacity utilization than we've seen in some time. We're very optimistic in terms of where we are. And we've gone slow in our Chicken business. We've built this thing from the ground up, and we're excited about the momentum that we're seeing relative to that.

豬肉和預製食品季節性 - 可能季節性疲軟，將季節性疲軟，然後第三季度可能，我說可能會弱於預製食品和豬肉推動的第四季度。雞。雞肉業務－我們看到雞肉業務的執行情況有所改善，並且一段時間以來我們看到了比以前更好的產能利用率。我們對目前的情況非常樂觀。我們的雞肉業務進展緩慢。我們從頭開始建立了這個東西，我們對所看到的相關勢頭感到興奮。

Wes, do you think about Chicken specifically that I haven't said?

韋斯，你有沒有特別想到我沒有說過的「雞」？

Yes, I think I'd say it this way, Adam. In the long term, Tyson is the market leader in the industry, and I would fully expect us to deliver best-in-class results over time regardless of the market conditions, but we still got work to do.

是的，我想我會這樣說，亞當。從長遠來看，泰森是該行業的市場領導者，我完全希望我們能夠隨著時間的推移提供一流的結果，無論市場狀況如何，但我們仍然有工作要做。

And Adam, I think -- this is John, just with one final clarifying point. You had a specific question around, can you quantify the operational performance opportunity? I would just say that -- we've got a range of guidance out there. I think that reflects the balance take and the midpoint of that is probably a reasonable place to be for the total company. But we've left things open a little bit on the top side and the high end of all the estimates of the various segments would reflect, at least what we believe to be achievable in our fiscal from an operational improvement opportunity. So I think that's about as much detail as we're intending to provide here. But safe to say, I think we see a lot of opportunities around the portfolio. The guidance reflects what we can get in '24, and we're optimistic about '25 and beyond, too.

我想亞當——這是約翰，我想澄清最後一點。您有一個具體問題，您可以量化營運績效機會嗎？我只想說——我們已經提供了一系列指導。我認為這反映了平衡情況，對於整個公司來說，其中點可能是一個合理的位置。但我們在頂部保留了一點開放性，各個部門的所有估計的高端將反映出，至少我們認為透過營運改進機會可以在我們的財政中實現什麼。所以我認為這就是我們打算在這裡提供的詳細資訊。但可以肯定地說，我認為我們在該投資組合中看到了許多機會。該指導反映了我們在 24 年可以獲得的成果，我們對 25 年及以後也持樂觀態度。

Okay. No, that's all very helpful color. And if I could just ask a follow-up on Beef and taking, Brady, some of your comments about kind of uncertainty on if heifer retention has actually begun in earnest across the industry, but if it did, that would further reduce slaughter utilization for a period, while those cattle don't come to market. Again, under the spirit of controlling the controllables, if we actually are entering heifer retention cycle and herd rebuild cycle, can you help quantify the magnitude of controllables and beef that you actually have to mitigate kind of what would be a further drop in volume and throughput that I mean the business is already operating at a loss today. Presumably, that would be a meaningful incremental challenge. So could -- is there a path for the Beef business to make money through the worst of the heifer retention period?

好的。不，這都是非常有用的顏色。如果我可以問一下有關牛肉的後續問題，布雷迪，請聽聽您對整個行業是否真正開始認真保留小母牛的不確定性的一些評論，但如果確實如此，這將進一步減少屠宰利用率一段時期內，這些牛還沒有進入市場。再次，本著控制可控因素的精神，如果我們實際上進入小母牛保留週期和牛群重建週期，您能否幫助量化可控因素和牛肉的程度，您實際上必須減輕數量和數量進一步下降的情況我的意思是，今天的業務已經在虧損運作。據推測，這將是一個有意義的增量挑戰。那麼，牛肉生意是否有辦法在小母牛保留期最糟糕的時期賺錢呢？

Thanks for the follow-up question there. And we've been pretty consistent with our message over the last few quarters, whereas there is absolutely a variety of expected outcomes here and how we move through relative to supply and pounds. One of the good signs we've seen is we have seen additional weight for carcass. And so that has provided some dilutive effect relative to cost structure, which is one of the concerns as you move through lower supplies, how that translates itself into potentially higher grading cattle is of interest as well, and we'll be monitoring that. But as we looked at the cycle and the potential outcomes of the cycle, we created a strategy that was completely focused on understanding a range of outcomes and how we can provide deliverables within those outcomes as well.

感謝您提出後續問題。在過去的幾個季度中，我們的訊息一直非常一致，而這裡絕對有各種預期的結果以及我們相對於供應和英鎊的變化。我們看到的好跡象之一是屠體重量增加。因此，這提供了相對於成本結構的一些稀釋效應，這是當你經歷較低供應時所關心的問題之一，這如何轉化為潛在的更高等級的牛也令人感興趣，我們將對此進行監測。但當我們審視週期和週期的潛在結果時，我們制定了一項策略，完全專注於理解一系列結果以及我們如何在這些結果中提供可交付成果。

And I'd just say we really appreciate and we like the strategy that we have developed, regardless of the range of outcomes on the supply side. We like the progress we have made year-to-date relative to controlling the controllables, which for us is operational excellence and efficiency within our assets, managing our mix and delivering to our customer, and we like the runway in front of us relative to improvements that we can continue to make as we move through what is going to be a range of outcomes through the cycle as well.

我只想說，我們真的很欣賞並且喜歡我們制定的策略，無論供應方面的結果如何。我們喜歡今年迄今為止在控制可控因素方面取得的進展，這對我們來說是資產內的卓越運營和效率，管理我們的組合並向客戶交付，我們喜歡我們面前的跑道相對於當我們經歷整個週期的一系列結果時，我們可以繼續做出改進。

Our next question comes from Heather Jones with Heather Jones Research.

我們的下一個問題來自希瑟瓊斯研究中心的希瑟瓊斯。

Congratulations on the quarter. Yes. I had a couple of questions. One on Chicken and one on Beef. And I just want to start on Chicken. I wanted to go back to the volume question. So I understand that Q2 was a more difficult compare than Q1, but it was a pretty substantial volume decline. And you always close the facility, but I think I remember those were going to be consolidated into other plants. So just wondering, is this production decline going to continue going forward? And was it lower outside meat purchases or lower internal production? Just wonder if you could help us how to think about the rest of the year going into '25.

恭喜本季。是的。我有幾個問題。一份是雞肉，一份是牛肉。我只想從雞肉開始。我想回到音量問題。因此，我知道第二季比第一季更困難，但銷量下降相當大。你總是關閉工廠，但我想我記得那些工廠將合併到其他工廠。所以我想知道，這種產量下降還會持續下去嗎？是外部肉品採購量減少還是內部產量減少？只是想知道您是否可以幫助我們如何思考進入 25 年的剩餘時間。

Sure, Heather. Let me start out and just maybe remind us of last year. In '23, at least the first half of '23 is not a real good comparator. If you look at Q1 of last year, we absolutely missed the demand signal in Q1 of last year, and that carried on into Q2 of last year. And so if you look at volume in Q2 of last year, versus Q2 of this year, you're going to see that it is down and -- but last year was really overstated. Volume growth was, in fact, there, but there was also issues with profitable sales as it relates to Q1 and Q2 last year. So we're beyond that, we've cleaned all of that up, and we're moving forward. We're running a much better business today in our Chicken business.

當然，希瑟。讓我先回顧一下去年的情況。在23年，至少23年的前半段並不是一個真正好的比較器。如果你看看去年第一季度，我們絕對錯過了去年第一季的需求訊號，而這種情況一直持續到去年第二季度。因此，如果你看看去年第二季的交易量與今年第二季的交易量，你會發現它有所下降——但去年確實被誇大了。事實上，銷售成長是存在的，但去年第一季和第二季的獲利銷售也存在問題。所以我們已經超越了這一點，我們已經清理了所有這些，並且我們正在繼續前進。今天，我們的雞肉業務經營得更好了。

And Wes, do you want to speak to the volumes?

韋斯，你想談談嗎？

Yes, Heather, thank you for your question and asking for clarity. Our volume is in line with our expectations. We are well positioned in supply-demand balance. And we have strong growth plans put in place, and you'll start to see that in the second half.

是的，希瑟，感謝您提出問題並要求澄清。我們的銷售量符合我們的預期。我們在供需平衡方面處於有利地位。我們制定了強有力的成長計劃，您將在下半年開始看到這一點。

Okay. And then a follow-up on Beef. More recently, beef demand seems to have been more challenged, and I don't know if it's related to the HPAI or what. But anyway, I just wonder if you could give us a sense of how your margins are tracking relative to where they were in Q2.

好的。然後是牛肉的後續。最近，牛肉需求似乎受到了更大的挑戰，不知道是和高致病性禽流感有關還是什麼。但無論如何，我只是想知道您能否讓我們了解一下您的利潤率相對於第二季度的情況如何。

Yes, Heather, thanks for the question. I would say relative to demand, we've seen a fantastic demand on both the Chicken side and the Pork side relative to retail promotional activity as well. While we've seen fantastic demand being driven by that retail and promotional activity, Beef really has not received much promotional activity at all. And so where in the past, as we move into the summer months, you've seen that activity. We'll be watching for that as we move into Q3 to see if we see additional promos, where retail specifically going to drive the consumer relative to any of the proteins. Luckily for us, we're in good shape on the Pork side, good shape on the Chicken side in terms of meeting that customer in those channels as well.

是的，希瑟，謝謝你的提問。我想說的是，相對於需求，我們也看到了零售促銷活動對雞肉和豬肉的巨大需求。雖然我們看到零售和促銷活動推動了巨大的需求，但牛肉實際上並沒有收到太多促銷活動。因此，在過去，當我們進入夏季時，您已經看到了這種活動。當我們進入第三季時，我們將密切關注這一點，看看是否會看到更多促銷活動，其中零售特別會推動消費者相對於任何蛋白質的消費。對我們來說幸運的是，我們在豬肉方面處於良好狀態，在雞肉方面也處於良好狀態，在這些渠道中滿足客戶方面也是如此。

So just to maybe cleanup for clarity, I think you may have misspoken on. It is Pork and Chicken, where we are seeing the future activity right now.

因此，為了清楚起見，我認為您可能說錯了。這是豬肉和雞肉，我們現在看到的是未來的活動。

That's correct.

這是正確的。

And so have you seen any -- I know you narrowed your guidance and you took down the up the high end for Beef. I'm just wondering has there been any deterioration in margins relative to Q2, given that you haven't gotten the future activity you normally would have gotten at this time of the year for Beef?

所以你看到過——我知道你縮小了你的指導範圍，你降低了牛肉的高端。我只是想知道，鑑於您尚未獲得通常在每年這個時候獲得的牛肉未來活動，相對於第二季度，利潤率是否有所惡化？

The Beef -- Beef promotion, that's been -- that's really been a calendar '24 story. And again, we'll continue to monitor that as we move through the remainder of the quarter, but we won't provide any additional guidance on Q3 other than what we've provided already.

牛肉——牛肉促銷，這確實是 24 年日曆上的故事。再說一次，我們將在本季度剩餘時間內繼續監控這一情況，但除了我們已經提供的內容之外，我們不會提供有關第三季度的任何其他指導。

The next question comes from Ben Bienvenu with Stephens.

下一個問題來自 Ben Bienvenu 和 Stephens。

So you noted that in the Chicken business, fairly equal contribution in the first half of the fiscal year of the improvement to what we saw last year between operational improvements and market improvements. As you look to the balance of the year, 3Q, 4Q, is it similarly equally split? Or should we see a diminished operational improvement contribution and more of the improvement is predicated on the market having strengthened?

因此，您注意到，在雞肉業務中，本財年上半年的營運改善和市場改善對我們去年看到的改善的貢獻相當相等。當您查看今年的剩餘時間時，第三季、第四季度，是否同樣平均分配？或者我們應該看到營運改善的貢獻減少，而更多的改善取決於市場的走強？

Well, let me say this in short, Ben, and then Wes can give you the details. As I mentioned in my opening statements, we have made great progress, but I would be -- I would also make sure that you understand that we believe there's still a lot of work to do. Good progress, but much work to do. And so you can define that financially, if you'd like, but we're not where we need to be yet in our Chicken business.

好吧，本，讓我簡單說一下，然後韋斯可以告訴你細節。正如我在開場白中提到的，我們已經取得了巨大進展，但我也會確保你們明白，我們認為還有很多工作要做。進展良好，但還有很多工作要做。因此，如果您願意，您可以在財務上進行定義，但我們的雞肉業務尚未達到我們需要的水平。

But Wes?

但是韋斯？

Yes, Ben, I'd say we certainly got more tailwinds than headwinds, and it's really a function of the volatility of the grain market, what ultimately happens in the supply and chicken markets and then the consumer mindset. And then as I've said a couple of times, we do have some go-forward investments in our value-added business in the back half of the year.

是的，本，我想說我們的順風肯定多於逆風，這實際上是穀物市場波動性的函數，最終會影響供應和雞肉市場，然後是消費者心態。正如我多次說過的那樣，下半年我們確實對增值業務進行了一些前瞻性投資。

Okay. Very good. My second question is related to total company. And in particular, in years past, you all have gone through the exercise of articulating what you think kind of normalized earnings power is for the business and you've provided some clarity by segment. Not asking today what that earnings power is, but maybe when you think you all might be at a place where you can provide that level of clarity at the total enterprise and across the segments, given all the changes that you've made and the operational improvements that you've made progress against?

好的。非常好。我的第二個問題與整個公司有關。特別是，在過去的幾年裡，你們都經歷過闡明你們認為正常化盈利能力對企業的影響的練習，並且你們已經按細分市場提供了一些清晰的信息。今天不問問盈利能力是什麼，但也許當你認為你們所有人可能都可以在整個企業和跨部門提供這種程度的清晰度時，考慮到你們所做的所有改變和運營你們已經取得進展的改進？

Ben, this is John Randall. Let me try to answer that question. So short version, yes. We're not making any adjustments to long-term outlook on normalized ranges today. We plan to do that maybe as we go through the balance of this year and start to look to '25 and kind of give some color around that potentially. But let me take the opportunity just to talk about the shape of the total -- of the rest of the year for the total company and build on some things that have already been said today.

本，這是約翰·蘭德爾。讓我嘗試回答這個問題。這麼短的版本，是的。今天我們不會對正常化範圍的長期前景進行任何調整。我們計劃在今年餘下的時間裡這樣做，並開始展望 25 年，並​​為這一點提供一些可能的色彩。但讓我藉此機會談談整個公司今年剩餘時間的整體情況，並以今天已經說過的一些事情為基礎。

So I just want to point out that from a total range standpoint, guidance has come above from midpoint to midpoint $350 million. We think that is reflective of the results year-to-date and some of our optimism for the balance of the year. And there's also a range of outcomes in there. And I think that we've -- despite some of the potential signals we see in Chicken around supply and demand, I think there's more tailwinds and headwinds there. I think going to our prepared segment, although we are experiencing some of the consumer behaviors that we've heard so many other companies talk about. I think we feel really good about our portfolio. And we've gotten questions about food away from home, food at home. We're in a pretty good position to win no matter where consumers are shopping.

因此，我只想指出，從整體範圍的角度來看，指引已高於 3.5 億美元的中點至中點。我們認為這反映了今年迄今的業績以及我們對今年剩餘時間的一些樂觀態度。其中還有一系列結果。我認為，儘管我們在雞肉中看到了一些圍繞供需的潛在信號，但我認為那裡有更多的順風和逆風。我認為，儘管我們正在經歷許多其他公司談論過的一些消費者行為，但還是要進入我們準備好的部分。我認為我們對我們的投資組合感覺非常好。我們收到了有關外出食物和在家食物的問題。無論消費者在哪裡購物，我們都處於贏得勝利的有利位置。

And I think that you kind of heard us say, hey, Q3 could be softer than Q4. I think I want to just put a point on that, that we see the rest of the year as being fairly balanced, but just with all of the various factors at play and some seasonality in Pork, especially there could be a tweak there, but don't want anyone to overread into that. We don't mean to get so overly precise. There's a lot of factors at play, and I would just emphasize that we're confident about the balance of the year and the midpoint to the guidance we've given.

我想你聽到我們說，嘿，第三季可能比第四季更軟。我想我想強調一點，我們認為今年剩餘時間相當平衡，但考慮到所有各種因素的影響以及豬肉的一些季節性，特別是可能會有一些調整，但是不希望任何人過度解讀這一點。我們並不想變得如此過於精確。有很多因素在起作用，我只想強調，我們對今年的平衡以及我們給予的指導的中點充滿信心。

The next question comes from Alexia Howard with Bernstein.

下一個問題來自亞歷克西婭·霍華德和伯恩斯坦。

So can I start with Chicken? I seem to remember that the [ColdSnap] in January hit production operations somewhat this quarter. Are you able to quantify any of that? How much it hit volumes and profitability for the segment overall?

那我可以從雞肉開始嗎？我似乎記得 1 月的 [ColdSnap] 對本季的生產營運造成了一定程度的影響。你能量化其中的任何一個嗎？它對整個細分市場的銷售和獲利能力產生了多大影響？

Alexia, this is John again. I would say that we typically plan for a little bit of that weather in the quarter. When we talked to you in February, we were pretty early on and had experienced some significant event just at that point, kind of one month in. I would say overall, though, the impacts in the quarter were not so significant that it had a disproportionate impact on earnings. So I think nothing to read into there.

亞歷克西婭，這又是約翰。我想說的是，我們通常會為本季的一些這種天氣做好計劃。當我們在二月份與您交談時，我們很早就經歷了一些重大事件，就在那時，大約一個月後。至於它對收入的影響不成比例。所以我認為那裡沒有什麼可讀的。

Okay. And then 2 quick things. How much longer do you expect the start-up costs in Prepared Foods to remain a headwind? When does that go away? And then finally, do you have a forecast for where you expect your leverage to end up by fiscal year-end?

好的。然後是兩件事。您預計預製食品的啟動成本將持續多久？那什麼時候消失？最後，您是否對到財政年度結束時您的槓桿率最終達到什麼水準有預測？

Alex, this is Melanie. And in terms of our start-up costs, we may experience a little bit bleeding over into Q3, but we think the majority of them have hit in Q2.

亞歷克斯，這是梅蘭妮。就我們的啟動成本而言，我們可能會在第三季遇到一些損失，但我們認為其中大多數都在第二季受到影響。

And to your second question, Alexia, on leverage, not placing a specific number where we expect to exit the year. But safe to say, we're definitely trending towards lower leverage and 2x or below is the long-term target. But that's as much as we can give right now.

至於你的第二個問題，Alexia，關於槓桿率，並沒有給出我們預計今年退出的具體數字。但可以肯定地說，我們肯定會趨向於降低槓桿率，2 倍或以下是長期目標。但這是我們現在所能給予的。

The next question comes from Andrew Strelzik with BMO.

下一個問題來自 BMO 的 Andrew Strelzik。

I wanted to go back to the Beef segment outlook. And you've mentioned some uncertainty and ranges of outcomes. I guess I'm just curious what is the environment that would get you to the top end of the Beef profit range versus the bottom end? Is it primarily around whether or not, we get heifer retention and herding rebuilding efforts in the fall, and that's kind of the biggest piece of it or the demand side, I guess, what are the range of outcomes that would get you to the top or bottom end of the range?

我想回到牛肉市場的前景。您提到了一些不確定性和結果範圍。我想我只是好奇什麼環境能讓你達到牛肉利潤範圍的上限而不是下限？主要是關於我們是否在秋季保留小母牛並進行畜群重建工作，這是其中最大的一部分，或者是需求方面，我想，哪些結果可以讓你達到頂峰或範圍的底部？

Thanks for the question, Andrew. And specifically, we talk a lot about beef demand. We talk a lot about beef cutout pricing as well. But also, we need to factor in the fact that drop as a significant amount of value that falls within the beef supply chain and also our largest cost is relative to live cattle costs as well. And so when you really balance the 2 revenue streams, the cutout pricing and the drop pricing and you take that into account with live cattle and where potentially we could see some live cattle pricing going, that really creates the range of outcomes. It's trying to balance those 3, the 2 revenue and the 1 supply cost perspective when we look at particular guidance and the range of outcomes.

謝謝你的提問，安德魯。具體來說，我們談論了很多關於牛肉需求的問題。我們也談了很多關於牛肉切塊定價的問題。而且，我們還需要考慮到這樣一個事實：牛肉供應鏈中的價值大幅下降，而且我們最大的成本也與活牛成本有關。因此，當您真正平衡兩個收入來源（即分切定價和降價定價）並將其考慮到活牛時，我們可能會看到一些活牛定價，這確實會產生一系列結果。當我們考慮特定的指導和結果範圍時，它試圖平衡這 3 個，即 2 個收入和 1 個供應成本。

But again, we still have plenty to control within Tyson. And we really focus on making sure that we balance the grade of cattle with the demands of the consumer as we move through the cycle as well. We're continuing to see improvements relative to efficiencies and yields. And really, we'll just continue to look at value streams that we can continue to generate to help offset some of these headwinds we have from a margin perspective.

但同樣，我們在泰森內部仍然有很多需要控制的地方。我們真正專注於確保在整個週期中平衡牛的等級與消費者的需求。我們不斷看到效率和產量方面的改善。事實上，我們將繼續關注我們可以繼續產生的價值流，以幫助抵消我們從利潤角度面臨的一些不利因素。

Okay. Okay. That's helpful. And then my second question is on the CapEx outlook. And I know last quarter, when it was reduced, you were kind of matching CapEx and the operating profit outlook. And so I guess I'm curious just how we should think about CapEx on a go-forward basis as the profit environment is better, since that hasn't really kept up and maybe there's timing dynamics and you've already mentioned controlling that tightly. But just as the profit dynamics get better, how should we think about the rate at which you might add back to CapEx? Where are the priorities where you might want to add back? Just any color around that on the go forward would be great.

好的。好的。這很有幫助。我的第二個問題是關於資本支出前景。我知道上個季度，當它減少時，你在某種程度上匹配了資本支出和營業利潤前景。因此，我想我很好奇，隨著利潤環境更好，我們應該如何在未來的基礎上考慮資本支出，因為這並沒有真正跟上，也許存在時間動態，並且您已經提到了嚴格控制。但隨著利潤動態變得更好，我們該如何考慮您可能增加資本支出的速度？您可能想要重新新增哪些優先事項？任何圍繞它的顏色都會很棒。

This is John. Let me take that question. So you are right in that we had talked in the past about being responsive to the operating environment and managing cash flows. I would tell you that, first off, we feel good about our free cash flow projection for the year in terms of being in excess of covering our dividend, so just pointing that out. But I would also tell you that the tighter range on our CapEx today, $1.2 billion to $1.4 billion that's really reflective of us determining what are the needs for the business and where are there opportunities for good investment. What I want you to take away from that is we're not turning on and off this big. It's kind of based on our outlook on profitability, but rather trying to return to a normalized level of spend.

這是約翰。讓我來回答這個問題。所以你是對的，我們過去曾討論過對營運環境做出回應並管理現金流。我想告訴你，首先，我們對今年的自由現金流預測感到滿意，因為它超出了我們的股息，所以只是指出這一點。但我還要告訴您，我們今天的資本支出範圍更窄，為 12 億美元至 14 億美元，這確實反映了我們確定業務需求是什麼以及哪裡有良好投資機會。我想讓你明白的是，我們不會這麼大的開關。這在某種程度上是基於我們對獲利能力的展望，而是試圖恢復到正常的支出水準。

And you asked where would be the best opportunities for investment. I think the short answer is that our prepared portfolio and components of our chicken portfolio, where we see the best opportunity for the growing our value-added business, is where we want to continue to invest. And then, of course, we have our ongoing maintenance and repair that's needed. So I think that will probably paint a good picture for you on how we think about capital allocation.

您問哪裡是最好的投資機會。我認為簡短的答案是，我們準備好的投資組合和雞肉投資組合的組成部分，我們看到了成長增值業務的最佳機會，也是我們想要繼續投資的地方。當然，我們也需要進行持續的維護和修理。因此，我認為這可能會為您描繪出我們如何看待資本配置的美好圖景。

The next question comes from Michael Lavery with Piper Sandler.

下一個問題來自 Michael Lavery 和 Piper Sandler。

You had mentioned that you still have some work to do in chicken and you've touched on that a few ways, but can you just be clear how that does or doesn't apply to your footprint there? Is the supply-demand balance pretty well set? Or is that another piece of the equation that could evolve as well?

您曾提到您在雞肉方面仍有一些工作要做，並且您已經通過幾種方式談到了這一點，但是您能否清楚地表明這是否適用於您在那裡的足跡？供需平衡是否已經相當好？或者這也是可以進化的方程式的另一個部分？

Yes. Thanks for this question. So let me answer it in two ways. I think, first off, on the network moves that we've made up until this point. We anticipate that we have either recovered all or should recover nearly all of that -- all of the volume in chicken and nearly all of the volume related to our pork moves and the other moves. So I think I just want to be clear that when we talk about that rationalization, we're talking about being more efficient, taking cost out and losing none of the business. So I think that, that is a point we're emphasizing.

是的。謝謝你提出這個問題。那麼讓我從兩個方面來回答這個問題。我認為，首先是我們到目前為止已經制定的網路舉措。我們預計我們要么已經恢復了全部，要么應該恢復了幾乎所有的量——雞肉的所有數量以及與豬肉運輸和其他運輸相關的幾乎所有數量。因此，我想我只是想澄清一點，當我們談論合理化時，我們談論的是提高效率、降低成本並且不損失任何業務。所以我認為，這是我們強調的一點。

The other part of your question was about chicken specifically, and I think that we even talked last year or a couple of quarters ago about the overall capacity utilization. Safe to say, we still got some headroom in our current footprint and would expect to grow with demand in the more profitable parts of our business. And so I think have a positive outlook based on all of the network moves.

您問題的另一部分具體是關於雞肉的，我認為我們甚至在去年或幾個季度前討論過整體產能利用率。可以肯定地說，我們目前的足跡仍然有一些發展空間，並且預計會隨著我們業務中更有利可圖的部分的需求而增長。因此，我認為基於所有網路舉措，我們應該抱持正面的前景。

If I might add one more thing relative to chicken. The back half of the year for chicken, if you look, grains have moderated, the demand for chicken is very strong, and we've built a fundamentally stronger Chicken business. So we're excited about that. We're executing better, and demand is certainly working in our favor.

如果我可以再添加一件與雞肉相關的事情。今年下半年的雞肉，如果你看的話，穀物已經放緩，對雞肉的需求非常強勁，我們已經建立了一個從根本上更強大的雞肉業務。所以我們對此感到興奮。我們執行得更好，需求肯定對我們有利。

Okay. That's helpful. And just on international. You've touched on it a couple of times earlier in the prepared remarks. Just how should we think about its margin runway? And what does it take for that to get a ramp-up in profitability?

好的。這很有幫助。而且只是國際航班。您在之前準備好的發言中已經多次提到這一點。我們該如何看待它的利潤跑道？怎樣才能提高獲利能力？

Well, thanks for the question on international. And I think it's important to remind this came up a little bit in the CapEx question. But I think we should remember over the last 2-plus years, we've built 12 processing plants around the world. That was part of the driver as it relates to the capital spend, and we're beyond that, and we're moving into filling up those capacities. But we're also lapping -- if you look at the International, we're lapping a ramp-up cost for the 7 facilities outside the United States, and our execution should continue to improve. Our focus short term is operational excellence and capacity utilization as it relates to our International business.

好的，謝謝你關於國際的問題。我認為重要的是要提醒這一點在資本支出問題中出現過一點。但我認為我們應該記住，在過去兩年多的時間裡，我們在世界各地建立了 12 個加工廠。這是驅動因素的一部分，因為它與資本支出有關，我們已經超越了這一點，我們正在著手填補這些產能。但我們也在努力——如果你看看國際賽場，我們就會為美國以外的 7 個設施制定增加成本的計劃，而且我們的執行力應該會繼續提高。我們短期的重點是與我們的國際業務相關的卓越營運和產能利用率。

Amy, would you like to speak?

艾米，你想說話嗎？

Thanks for the question, Michael. As Donnie said, we are absolutely focused on delivering the results that is expected of us. So we're focusing on driving operational efficiencies across our plants. We are focused on improving our conversion costs. We're identifying available and open -- available capacity, reviewing our SKUs and delivering the more profitable mix of products, and we're also tightening our spending. So all of these actions are beginning to -- we're beginning to see the results and improve gross margins and AOI delivery.

謝謝你的提問，麥可。正如唐尼所說，我們絕對專注於交付我們期望的結果。因此，我們致力於提高整個工廠的營運效率。我們專注於提高轉換成本。我們正在確定可用和開放的可用產能，審查我們的 SKU 並提供利潤更高的產品組合，同時我們也在收緊支出。因此，所有這些行動都開始 - 我們開始看到結果並提高毛利率和 AOI 交付。

This concludes our question-and-answer session. I would like to turn the conference back over to the company for any closing remarks.

我們的問答環節到此結束。我想將會議轉回公司進行閉幕致詞。

Thanks for your continued interest in Tyson Foods. We look forward to speaking with you again soon.

感謝您對泰森食品的持續關注。我們期待很快再次與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。