High egg prices drive Cal-Maine’s specialty egg sales

Increased conventional shell egg prices drove Cal-Maine Foods’ third quarter fiscal 2023 nets sales to US$997.5 million, an increase of over 100% compared to the third quarter in fiscal 2022, according to its recently reported financial results.

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Terryfic3D | iStockPhoto.com
Terryfic3D | iStockPhoto.com

Increased conventional shell egg prices drove Cal-Maine Foods’ third quarter fiscal 2023 nets sales to US$997.5 million, an increase of over 100% compared to the third quarter in fiscal 2022, according to its recently reported financial results.

During the quarter, the price of conventional shell eggs increased to US$3.68 per dozen on average, compared to US$1.46 one year earlier.

Cal-Maine’s total dozens sold increased 1.3% to 291.4 million, compared to the same quarter last year, due to an increase of 9.4% in specialty egg sales. Conventional egg sales decreased 2.7% compared to the third quarter in fiscal 2022.

Max Bowman, Cal-Maine Foods Chief Financial Officer, stated, “Our financial results for the quarter were led by net sales of $997.5 million compared with $477.5 million for the same period last year. Net income for the third quarter of fiscal 2023 was $323.2 million, or $6.62 per diluted share, compared with $39.5 million, or $0.81 per diluted share, for the third quarter of fiscal 2022. These results reflect the significantly higher market prices and favorable demand boosted by the busy holiday season.”

The producer attributes its greater specialty egg sales to the higher conventional egg prices, which are a result of the U.S.’s current highly pathogenic avian influenza (HPAI) outbreak. Conventional egg prices exceeding specialty egg prices has occurred for the past four quarters but is unusual historically.

Cal-Maine reported an operating income of US$407.8 million for the quarter and profited US$463 million. Farm production costs increased 18.2% to US$0.17 per dozen compared to the same quarter last year. The increase was primarily attributed to higher feed costs, due to a decreased supply of corn and soybean and supply chain issues, that were 20.8% higher compared to the third quarter of fiscal 2022.

Sherman Miller, Cal-Maine Foods President and Chief Executive Officer, stated: “Our results are reflective of a dynamic market environment with higher average selling prices and favorable demand. Elevated market pricing continues, primarily due to the impact of the ongoing epidemic of HPAI, which has significantly reduced the nation’s egg-laying capacity. At the same time, consumer demand for shell eggs remained robust in the third quarter, which included the peak winter holiday season.”

“In combination with the current inflationary environment, the HPAI epidemic has created additional challenges for all producers, with increasing costs and supply chain disruptions,” Miller continued. “The domestic egg market has always been intensely competitive and highly volatile even under normal market circumstances.”

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