Cagle's, Inc. reported a net loss of $0.6 million or $0.12 per share for fiscal year 2011 compared to net income of $2.5 million or $0.55 per share for fiscal year 2010.
Net sales increased to $310.1 million, up 1% from fiscal 2010, reflecting an increase in sales pounds of 2.6% and a decrease in sales price of $.0217 per pound. Quoted markets were variable with boneless breast up 6.8%, tenders up 5.3%, wings down 21.7% and leg quarters down 4%. Cost of sales for the fiscal year increased $7.5 million or 2.6% from last year, reflecting higher feed cost of $18 per ton or 7.2%.
Fourth quarter feed cost rose $82 per ton or 34% above the same quarter of last year, increasing Cagle's cost of sales for the fourth quarter by $11.7 million. For fiscal 2011, feed cost increased by $17.7 million or 18.5% from fiscal 2010 driven by a 75% increase in cost of corn.
The first six months of fiscal 2011 provided profitable returns for Cagle's with net income of $6.6 million. However, in the last two quarters of the year, the feed price increase without a corresponding increase in market prices produced losses in both the third and fourth quarters. Feed prices continue to present a difficult challenge to overcome.