Tyson Foods, Inc. (TSN) has reported a 28.63 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $593 million, or $1.59 a share in the quarter, compared with $461 million, or $1.15 a share for the same period last year.

Revenue during the quarter went up marginally by 0.33 percent to $9,182 million from $9,152 million in the previous year period. Gross margin for the quarter expanded 303 basis points over the previous year period to 16.15 percent. Total expenses were 89.31 percent of quarterly revenues, down from 91.52 percent for the same period last year. This has led to an improvement of 222 basis points in operating margin to 10.69 percent.

Operating income for the quarter was $982 million, compared with $776 million in the previous year period.

"The year is off to the best start in company history with record earnings, record operating income and record cash flows," said Tom Hayes, president and chief executive officer of Tyson Foods. "Return on sales for each operating segment was in or above the normalized range. The tremendous returns generated in the Beef and Pork segments are providing fuel for growth in our value-added Chicken and Prepared Foods segments. "Due to our outstanding performance in Beef and Pork and strong market conditions in the first quarter, we are raising our annual earnings guidance to $4.90-5.05 per share. We expect the earnings cadence for the remainder of the fiscal year to follow more normal patterns, including the seasonality typical of our second quarter. "We're on a path toward what we expect to be our fifth straight year of record results. Our path won’t be linear, but our team is focused on delivering long-term growth and creating shareholder value."

For financial year 2017, Tyson Foods, Inc. forecasts diluted earnings per share to be in the range of $4.90 to $5.05.

The company has spent $214 million cash to meet investing activities during the quarter as against cash outgo of $191 million in the last year period.

The company has spent $957 million cash to carry out financing activities during the quarter as against cash outgo of $404 million in the last year period.

Cash and cash equivalents stood at $307 million as on Dec. 31, 2016, down 74.14 percent or $880 million from $1,187 million on Jan. 02, 2016.

Working capital declines

Tyson Foods, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,770 million as at Dec. 31, 2016, down 11.90 percent or $239 million from $2,009 million on Jan. 02, 2016. Current ratio was at 1.60 as on Dec. 31, 2016, up from 1.55 on Jan. 02, 2016.

Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 28 days for the last year period. Days sales outstanding were almost stable at 16 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 16 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding was almost stable at 19 days for the quarter, when compared with the previous year period.