US Cal-Maine’s Q4 net sales up nearly 70% versus 2021’s

Egg producer Cal-Maine Foods saw significantly higher selling prices and record quarterly specialty shell egg sales in its fourth quarter fiscal 2022.

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Egg producer Cal-Maine Foods saw significantly higher selling prices and record quarterly specialty shell egg sales in its fourth quarter fiscal 2022. The producer reported the increases to be driven by considerable growth in consumer demand compared to its fourth quarter fiscal 2021.

“Our fourth quarter marked a strong finish to fiscal 2022 for Cal-Maine Foods. Record quarterly revenue performance was driven by significantly higher average selling prices and record quarterly specialty shell egg sales, supported by solid demand,” said Dolph Baker, Cal-Maine Foods Chairman and Chief Executive Officer, during the company’s review of its fiscal fourth quarter and fiscal year 2022 results on July 19, 2022.

“We continue to perform at the top of our industry as an efficient operator, despite inflationary market conditions in North America and economic uncertainties globally,” continued Baker.

Why were specialty egg sales so high?

The producer’s specialty egg sales totaled US$186.5 million, or 32.9% of its total shell egg revenue. However, its conventional egg prices were almost double the amount per dozen compared to 2021 due to the effects of avian influenza in the U.S. on supply levels, making the two options virtually the same price for consumers.

Max Bowman, Cal-Maine Foods Chief Financial Officer, stated, “The specialty egg net average selling price per dozen increased to $2.015 compared with $1.874 per dozen in fourth quarter 2021. The conventional egg net average selling price per dozen increased to $2.098 compared with $1.109 per dozen in fourth quarter 2021. Our fourth quarter net average selling price for shell eggs improved to $2.069 per dozen, up 57.0%, compared with $1.318 per dozen in the prior year.”

To continue supporting its specialty egg sales, the company’s Board of Directors recently approved a US$55.3 million capital project to convert an existing layer farm to cage-free housing. The facility is located in Chase, Kansas and will house approximately 1.5 million cage-free layers upon completion.

The project involves converting conventional layer houses to cage-free houses and remodeling the associated pullet facilities. Construction is expected to begin immediately with completion of the project expected by the end of 2025.

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