After experiencing a net loss one year ago, Cal-Maine Foods reported a return to profitability during the most recent quarter.
The world’s largest egg company reported a net income of
Cal-Maine Foods also experienced a substantial jump in net sales for the most recent quarter. Net sales for the fourth quarter of fiscal 2018 were
Results for fiscal 2018 were favorably affected by a
Dolph Baker, chairman, president and chief executive officer of
“Market prices were exceptionally strong during the first part of the quarter, but fell significantly following the Easter holiday. Overall, average customer selling prices were up 74.1 percent compared with the fourth quarter last year. According to reports from IRI, a consumer market research firm, retail demand has been favorable throughout this period, especially around the Easter holiday season. Export demand remained at near historical levels during the fourth quarter. Together, these demand trends have supported market prices at recent production levels. However, according to recent USDA reports, the chick hatch rate has been up for the last eight months, and has increased by approximately 10 percent since the beginning of calendar 2018. Given these trends, the projected increase in the U.S. laying hen flock and potential excess shell egg supply could create additional pricing pressure.”
Specialty egg supply and demand
Specialty eggs, excluding co-pack sales, accounted for 25.5 percent of Cal-Maine’s sales volumes for the fourth quarter, compared with 22.7 percent a year ago. Specialty egg revenue was 29.0 percent of total shell egg revenue, compared with 42.0 percent for the fourth quarter of fiscal 2017, reflecting significantly higher market prices for non-specialty eggs in the current period, Baker said.
“Specialty eggs remain a primary focus of our growth strategy, and we strive to offer a favorable product mix that reflects consumer demand trends. As the egg industry moves forward in anticipation of the expected increase in demand for cage-free eggs, we are working closely with our customers to ensure their needs are met through this transition. As such, we intend to make the required investments in our operations and adjust our cage-free production capacity in line with expected demand.
“We are also closely monitoring industry developments surrounding a proposed referendum that will be on the ballot for voters in
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