Sanderson Farms net income doubles in third quarter
Poultry company also sees meaningful increase in net sales for the quarter
Sanderson Farms saw its net income more than double and its net sales increase substantially during the third quarter of fiscal year 2017, the company reported on August 24.
The quarter ended on July 31.
For the quarter, Sanderson Farms saw its net income reach $115.8 million, compared to a net income of $54.7 million during the same quarter of fiscal year 2016. For the first three quarters of the fiscal year, the net income is just shy of twice its net income for the first nine months of the 2016 fiscal year, going from $113 million to $206.9 million.
Net income for the third fiscal quarter reflects an accrual for probable liability for a contribution to the company's employee stock ownership plan of
Net sales for the third quarter of fiscal 2017 were
Impact of market conditions
"Sanderson Farms' financial results for the third quarter of fiscal 2017 reflect a continued favorable balance of supply and demand for fresh chicken sold to retail grocery store customers," said
According to Sanderson, compared with the third fiscal quarter of 2016, market prices for chickens sold to retail grocery store customers remained relatively flat at levels that reflect a good supply and demand balance. Compared with the third fiscal quarter of 2016, jumbo boneless breast meat prices were higher by approximately 24.8 percent, the average market price for bulk leg quarters increased approximately 15.9 percent, and jumbo wing prices were higher by 40.2 percent. The company's average feed cost per pound of poultry products processed decreased
Prices paid for corn and soybean meal, the company's primary feed ingredients, increased 0.3 percent and 3.1 percent, respectively, compared with the third quarter of fiscal 2016. In its report published
Sanderson reported that the company continues to make progress with its new poultry complex in St. Pauls, North Carolina. The poultry processing plant is now operating at 75 percent of its capacity, and remains on schedule to reach full production in
Construction will commence on Sanderson Farms’ new
“We look forward to the opportunities the new facilities will provide to our shareholders, our customers and our employees when we begin processing at the new processing plant during the first calendar quarter of 2019," Sanderson said.