Cal-Maine Foods reported a significant increase in sales for the fourth quarter of 2020 compared to the same time period the year before. The results for the quarter, which ended May 30, and the fiscal year 2020, were released on July 20.
“Fiscal 2020 demonstrated Cal-Maine Foods’ resiliency in the face of challenging business conditions and volatile egg prices. After three fiscal quarters characterized by an oversupply of eggs and depressed market prices, demand for eggs increased and market prices rose 62.4% during our fourth fiscal quarter over the average price for the first three quarters, as consumers purchased more eggs for preparing meals at home in response to the COVID-19 pandemic,” Dolph Baker, chairman and chief executive officer of Cal-Maine Foods, Inc., said in a press release.
“We are extremely proud of the dedicated work of Cal-Maine Foods’ employees across our operations who worked particularly hard to meet the unexpected and unprecedented demand for eggs.”
Many retail stores throughout the U.S. experienced egg shortages this spring, due to a combination of supply chain interruptions, pantry stocking and an increased interest in stress-baking.
Quarterly stats
Net sales for the fourth quarter of fiscal 2020 were $453.3 million, a 61.6 percent increase compared to $280.6 million for the fourth quarter of fiscal 2019. The Company reported net income of $60.5 million, or $1.25 per basic share and $1.24 per diluted share, for the fourth quarter of fiscal 2020, compared to net loss of $19.8 million, or $(0.41) per basic and diluted share, for the fourth quarter of fiscal 2019.
For the fiscal year 2020, net sales were $1,351.6 million compared to $1,361.2 million for the prior year. The Company reported net income of $18.4 million, or $0.38 per basic and diluted share, for fiscal 2020, compared to net income of $54.2 million, or $1.12 per basic and diluted share, for the prior year.
For the fourth quarter, sales of specialty eggs were $133.3 million, accounting for 29.9% of Cal-Maine egg sales revenue, compared with $119.9 million, or 44.1% of egg sales revenue, in the fourth quarter of fiscal 2019. The increase in specialty egg revenue in the fourth quarter 2020 resulted from a 10.4% increase in specialty dozens sold in the fourth quarter of fiscal 2020 over the fourth quarter of fiscal 2019, as well as slight increase in specialty egg prices.
"Specialty eggs are an important part of our growth strategy, and we strive to provide a favorable product mix in line with consumer demand,” Baker said. “We have invested over $371.7 million in facilities, equipment and related operations to expand our cage-free production starting with our first facility in 2008.”
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