Michael Foods' financial performance during the third quarter of fiscal year 2017 was not as strong as its parent company, Post Holdings, would have liked, but the business segment did perform as expected, Post Holdings President and CEO Robert V. Vitale said during a quarterly earnings call on August 4.
Being measured on a pro-forma basis, net sales for Michael Foods were down 4 percent, when compared to the third quarter of fiscal year 2017, but egg volumes increased 6 percent. Michael Foods financial results were measured on a pro-forma basis to factor in the company’s acquisition of National Pasteurized Eggs, which was finalized on October 3, 2016.
Jeff Zadoks, Post Holdings chief financial officer and senior vice president, said low prices for shell eggs had a negative impact on Michael Foods’ value-added egg products.
However, Vitale said he expects the price of shell eggs to normalize.
“The USDA reports on the size of the flock has shown decreases month over month since January. So through January through July, each month has been down,” Vitale said during the earnings call. “We think that the market is slowly but surely getting closer and closer to where equilibrium occurs and you get back to more normal prices, but predicting exactly when that will occur, obviously, it’s next to impossible.”
Despite the uncertainty of when egg prices will moderate, Vitale said the company feels confident that things are progressing in the right direction, and the company will be proactive in reaching out to potential customers.
Post Holdings’ cheese, potato and pasta products are also a part of the Michael Foods segment.
