Shares in Tyson Foods, the largest meat processor in the US, soared by as much as 13% at one point during trading on Friday after the group reported record operating profits for the first quarter of its 2016 financial year.

Despite a 15% drop in first-quarter sales to just under $9.2bn, Tyson recorded operating profits of $776m – a 38% improvement on the same period last year. Operating margins increased dramatically, nearly doubling to 8.5% after particularly strong performances from the group’s pork and prepared foods divisions.

With global grain and cereal prices practically on the floor, Tyson has been able to cut significant costs from its balance sheet, significantly improving profitability.

As a result of the strong first-quarter performance, Tyson chief executive Donnie Smith said the group was raising its earnings guidance (EPS) for the full year to $3.85-$3.95 per share.

“2016 is off to a very strong start in what we expect to be another record year,” added Smith. “Solid execution across the entire team resulted in record earnings, record operating income, record margins and record cashflows.”

After some difficult years, Tyson’s beef division has returned to profitability, making $71m in this quarter with modest margins of 2%, a strong turnaround when compared with the $6m operating loss the beef division recorded for the same period in 2015.

Tyson’s core earnings came from its chicken operations, which had operating profits of $358m for the quarter with earnings margins of almost 14%. Tyson said its feed costs declined by almost $60m for the quarter and the company expects to make full-year savings of $200m if grain prices stay as they are.

Tyson’s prepared foods division made the greatest improvement over the three months, with operating profits almost trebling to $207m as margins increased significantly to almost 11%. The group’s pork division also recorded a strong start to the year with operating profits of $158m, a 23% year-on-year increase.

Shares in Tyson have gained by almost 45% over the last 12 months, with the company forecasting a positive outlook for the year ahead.