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Sanderson Farms Q2
Yurii Bukhanovskyi, Bigstock
on May 26, 2016

Sanderson Farms’ net income down in second quarter

Company hit by decrease in sales prices

Sanderson Farms reported a net income of $47.6 million for the second quarter of fiscal year 2016, a sizeable drop from the $71.2 million achieved during the same quarter of fiscal year 2016.

The drop reflects both a decline in net sales that were brought on by a decrease in sales price per pound when compared to the previous year. Sanderson Farms’ net sales for the most recent quarter were $692.1 million, compared to $716.6 million for the same period a year ago. However, the amount of poultry sold in terms of pounds was up 8.6 for the quarter, Joe Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, stated in a press release.

Sanderson Farms’ second quarter ended on April 30, with the company releasing the quarterly results on May 26.

"The results for our second quarter of fiscal 2016 reflect lower grain costs, continued favorable demand for poultry products from retail grocery store customers, higher volume, and an improving export environment," Sanderson said. "While our sales price per pound decreased significantly during the first half of this fiscal year compared with last year, market prices improved steadily through the second fiscal quarter as poultry export market fundamentals improved.

"Our net sales for the quarter reflect lower sales prices, offset by significantly more pounds sold. … Poultry pounds sold increased 8.6 percent during the quarter compared with last year's second quarter.”

Sanderson Farms expansion projects progressing

Sanderson also reported progress on its new facility in Palestine, Texas, and its complex under construction in St. Pauls, North Carolina.

“Our new Palestine, Texas, facility is running well as we continue to move toward full production, and we expect to reach that milestone in our fourth fiscal quarter,” Sanderson said. “We also continue construction at the new hatchery, processing plant and waste water treatment facility in St. Pauls, North Carolina, and we expect to open the plant during our first fiscal quarter of 2017." 

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