US egg firm Cal-Maine Foods' first-quarter net profits has more than tripled as sales climbed on higher average market prices for shell eggs.
In the three months ended 1 September, earnings surged to US$9.4m from $3.1m last year, the firm reported today (1 October).
Operating profit in the period amounted to $15.6m versus $5.9m reported last year, while net sales climbed 11.9% to $272.9m.
"Our speciality egg sales have continued to trend higher and represented over 16.1% of dozens sold and 23.5% of total shell egg sales revenue for the quarter," said president and CEO Dolph Baker. "We will continue to identify new market opportunities to expand our speciality egg business and meet growing customer demand."
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Cal-Maine Foods Reports First Quarter Fiscal 2013 Results
JACKSON, Miss.--(BUSINESS WIRE)--
Cal-Maine Foods, Inc. (CALM) today announced results for the first quarter of fiscal 2013 ended September 1, 2012.
For the first quarter of fiscal 2013, net sales were $272.9 million, compared with net sales of $243.8 million for the first quarter of fiscal 2012. The Company reported net income of $9.4 million, or $0.39 per basic and diluted share, for the first quarter of fiscal 2013 compared with net income of $3.1 million, or $0.13 per basic and diluted share, for the year-earlier period.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, "We are pleased with our financial and operating performance for the first quarter of fiscal 2013. These results reflect a strong start to our fiscal year in what is typically our most challenging quarter. Revenues were up 12.0 percent over the same period last year, while volumes were at about the same level, reflecting higher average market prices for shell eggs. Our specialty egg sales have continued to trend higher and represented over 16.1 percent of dozens sold and 23.5 percent of total shell egg sales revenue for the quarter. We will continue to identify new market opportunities to expand our specialty egg business and meet growing customer demand.
"We have remained focused on running efficient operations in spite of higher feed costs than we experienced a year ago," Baker noted. "The damage to the national corn and grain crops caused by the extreme summer drought conditions will likely keep our feed costs near record high levels in fiscal 2013.
"As previously announced on July 18, 2012, we acquired the egg production assets of Pilgrim's Pride Corporation, adding two additional production complexes with capacity for approximately 1.4 million laying hens located near Pittsburg, Texas. We are pleased with the progress we have made in integrating these facilities into our operations and we are excited about the expansion of our business, particularly with our Texas customers.
"We look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2013. Current market conditions are favorable with strong retail demand for eggs, especially as we head into the busy holiday season. We believe we are well positioned to succeed in this environment. We have a proven management team focused on executing our strategy to be an efficient low cost producer, expand our specialty egg business, provide exceptional customer service and identify suitable acquisitions to enhance our growth and build shareholder value," added Baker.
For the first quarter of fiscal 2013, Cal-Maine Foods will pay a cash dividend of approximately $0.13 per share to holders of its common and Class A common stock. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable November 15, 2012, to shareholders of record on October 31, 2012.