Higher Egg Prices Boost Cal-Maine's Results

US - Cal-Maine Foods reports higher sales for fiscal year 2011 than the previous year, with speciality eggs now accounting for almost one-quarter of its revenue.

26 July 2011

3 minute read

North America

Cal-Maine Foods, Inc. has announced financial results for the fourth quarter and fiscal year ended 28 May 2011.

For the fourth quarter of fiscal 2011, net sales were $242.4 million compared with net sales of $222.1 million for the fourth quarter a year ago. The Company reported net earnings of $7.3 million, or $0.30 per basic share, for the fourth quarter of fiscal 2011 compared with net earnings of $21.0 million, or $0.88 per basic share, for the same period last year.

For the fiscal year 2011, net sales were $942.0 million compared with net sales of $910.1 million for fiscal 2010. The Company reported net income of $60.8 million, or $2.55 per basic share, for fiscal 2011 compared with net income of $67.8 million, or $2.85 per basic share, in fiscal 2010.

Commenting on the results, Dolph Baker, president and chief executive officer of Cal-Maine Foods, Inc., stated: "Our results for the fourth quarter of fiscal 2011 reflect a more challenging environment compared with the previous year period. The higher retail demand associated with a late Easter holiday and a slightly smaller national flock helped boost egg prices by an average of five cents per dozen for the quarter. However, feed costs have continued to escalate and were up 12 cents per dozen compared with the same period a year ago, which affected our profitability for the fourth quarter.

"For fiscal 2011, we were pleased with our overall higher sales compared with fiscal 2010. Specialty egg sales, which carry a higher selling price, have continued to grow and accounted for approximately 24 per cent of shell egg revenue and 16 per cent of total dozens sold for the year. We are encouraged with the strong retail demand trends; however, we anticipate feed costs will remain very high and volatile.

"Our operations have continued to run well and we believe our recent management changes will enhance our ability to execute our growth strategy with the goal of further improving our operating performance in fiscal 2012," Mr Baker concluded.