Cal-Maine Foods has reported record breaking sales and profits for its fiscal third quarter.
Sales rose by 33% during the quarter to US$477.5 million while the company’s net income rose to US$39.5 million, up from the US$13.5 million – an increase of almost 200%.
“We are pleased to report a strong performance for the third quarter of fiscal 2022. Net sales of $477.5 million represented a third-quarter revenue record, driven by improved shell egg pricing. The net average selling price for all eggs increased 29.4 percent to $1.612 per dozen compared with $1.246 per dozen in the prior-year period,” stated Dolph Baker, Cal-Maine Foods chairman and chief executive officer.
Egg sales
Total egg dozens sold in the third quarter increased by 2.8% when compared to the same quarter last year. Additionally, retail sales improved by 1.4%. This outpaced the industry which experienced a shell egg volume decline of 6.4%, explained Baker.
While retail demand for shell eggs has decreased slightly from the pandemic’s start, an increase in demand from food service has more than compensated for this.
The increase in Cal-Maine Foods’ shell egg sales was attributed to continuous investment in its specialty egg business and cage-free capabilities, as well as to its investment in Southwest Specialty Eggs.
Specialty egg sales totaled $182.9 million over the quarter, contributing 39.4% to total shell egg revenue. This was up from US$145.2 million in the same period last year. The number of specialty egg dozens sold increased to 95.1 million, or 33.1% of total dozens sold, compared to 27.4% in the same quarter last year.
The consumer preference for specialty eggs, which includes cage-free eggs, is growing due to a higher tolerance of premium prices, the company noted. Cage-free egg sales comprised 24.1% of total net shell egg sales in the quarter and 23% of total net shell egg sales fiscal year-to-date.
“We continue to focus on offering a favorable product mix that meets the needs of our customers, including conventional, cage-free, organic and other specialty eggs and egg products,” Baker stated.
