Seaboard Corporation reported a decline in net income and net sales for its investment in Butterball for the first quarter of fiscal year 2024.
Seaboard’s holds 52.5% ownership in Butterball, and the financial results reported for Seaboard’s turkey operations are accounted for using the equity method.
For the quarter, which ended on March 30, the turkey segment achieved a net income of $15 million for the quarter, down significantly from the $48 million reported during the first quarter of fiscal year 2023. Its operating income for the quarter was reported at $16 million, down year-over-year from $50 million.
Net sales for the quarter were reported at $370 million, a drop from the $408 million reported one year ago, according to a Form 10-Q that can be accessed through the Seaboard Corporation Investor Relations website.
“The decrease in net income was primarily the result of a $38 million decrease in sales due to a 7% decrease in the average selling price related to a decline in commodity pricing and a 3% decrease in volumes sold. The decrease in sales was partially offset by a 14% decrease in production costs, primarily related to lower feed costs,” the company stated.
Seaboard, on its Form 10-Q, stated that it cannot predict market prices for turkey or the cost of feed in future financial reporting periods, but that it does expect Butterball to be profitable for the remainder of 2024.
Based in Garner, North Carolina, Butterball is one of the largest producers of turkey products in the world. Butterball products are distributed in more than 45 countries. Butterball operates processing plants in North Carolina, Arkansas, Illinois and Missouri.
Butterball slaughtered an estimated 1.06 billion pounds of live turkeys in 2023, an increase from 1 billion pounds in 2022. Company brands are Butterball, Carolina Turkeys, Just Perfect and Farm to Family.
