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Strong Sales Boost Cal-Maine's Q2 Results

30 December 2011, at 8:55am

US - Improved operating efficiency at Cal-Maine has allowed the company to absorb higher feed costs and improve its profitability for the quarter, according to its CEO in the latest quarterly report.

Cal-Maine Foods, Inc. has announced results for the second quarter and six months ended 26 November 2011.

Net sales for the second quarter of fiscal 2012 were $290.4 million compared with net sales of $234.5 million for the same quarter of fiscal 2011. The Company reported net income of $23.3 million, or $0.97 per basic share, for the second quarter of fiscal 2012 compared with net income of $15.2 million, or $0.64 per basic share, for the second quarter of fiscal 2011.

For the first six months of fiscal 2012, net sales were $534.2 million compared with net sales of $424.9 million for the prior-year period. The Company reported net income of $26.4 million, or $1.11 per basic share, for the first half of fiscal 2012 compared with net income of $19.9 million, or $0.84 per basic share, for the year-earlier period.

Dolph Baker, president and chief executive officer of Cal-Maine Foods, Inc., stated: "We are pleased with our results for the second quarter and the favourable trends in Cal-Maine's business through the first half of fiscal 2012. Our higher sales reflect strong seasonal retail demand for eggs as well as higher average selling prices. We typically sell more eggs around the holidays and demand has been very good this fall with total dozen eggs sold up six per cent compared with the same period last year. Sales of specialty eggs, which have a higher selling price, accounted for approximately 23 per cent of shell egg revenue for the quarter and over 16 per cent of total dozens sold. Value-added specialty eggs include nutritionally-enhanced, organic and cage-free eggs, and represent a rapidly growing segment of the shell egg market as these products offer alternative choices for consumers with special preferences.

"Our production costs have been materially affected by our feed costs, which were up 20 per cent compared with the second quarter of fiscal 2011. Prices for corn and soybean meal, our primary feed ingredients, have continued to escalate this fiscal year. However, we are pleased with the efficiency of our operations and our ability to absorb these higher costs and improve our profitability for the quarter. While we have recently seen some easing in grain prices, we still expect our feed costs to be high and volatile for the rest of the fiscal year," added Mr Baker.

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

Further Reading

- You can view the full report by clicking here.

- Go to our previous news item on this story by clicking here.