Demand for specialty eggs boost Cal-Maine third quarter sales

Cal-Maine Foods, Inc. reported results for the third quarter and nine months ended February 28, 2015.

 

Cal-Maine reported 11% growth in sales in the third quarter of 2015 due to the increase demand in specialty eggs during the holiday season.

“Specialty egg volumes have increased throughout this fiscal year and were up 22.6% for the third quarter compared with the prior year,” explained Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc.

Furthermore he added, “Specialty egg sales accounted for 20.3% of dozen shell eggs sold and 26.9% of total shell egg sales revenue for the third quarter of fiscal 2015, compared with 17.4% of dozen shell eggs sold and 23.7% of total shell egg sales revenue for the third quarter of fiscal 2014. We believe the strong performance of specialty eggs will continue to be a key driver of our growth as we capitalize on favorable consumer demand trends. We provide a wide variety of healthy choices that meet this demand. We will continue to make the appropriate investments to expand our production capabilities for specialty eggs and identify ways to further enhance our product mix.

For the quarter ended on Feb. 28, 2015, the company reported net income of $50.9 million. Net sales for the recently ended quarter were $437.6 million compared with net sales of $395.5 million a year ago.

For the first nine months of fiscal 2015, net sales were $1,173.1 million compared with net sales of $1,069.3 million for the prior-year period. The Company reported net income of $115.1 million for the same period in fiscal 2014.

Baker said lower feed costs per dozen eggs were lowered 9.1% lower in the first nine months of the fiscal year, compared to the previous year.

As result, operating income for the Q3-2015 was $72.0 million compared with $46.6 million for the Q3-2014.

Still, Baker acknowledged that the implementation of Proposition 2 in Calif. did initial disruption in market supply on January 1, 2015. However, prices have moderated and the shell egg market in Calif. seems to be striking a more favorable balance of supply and demand as producers adjust to the new standards.

“We are very pleased with our performance to date in fiscal 2015. Looking ahead, we will continue to monitor market conditions that could influence our business, including the changing situation in California as well as the national hen supply. And, as always, we continue to closely watch the grain markets. Regardless of market conditions, we will manage our operations with efficiency and work hard to meet the demands of our customers. We look forward to the completion of another successful year for Cal-Maine Foods,” Baker concluded.

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