Cal-Maine Foods, the largest producer and distributor of fresh shell eggs in the United States, announced its financial results for the first quarter of fiscal 2025, covering thirteen weeks that ended on August 31, 2024.
First Quarter Fiscal 2025 Highlights:
- Net sales reached $785.9 million.
- Net income was $150.0 million, equating to $3.06 per diluted share.
- The company achieved record numbers in both total dozens sold and specialty dozens sold.
- A cash dividend of approximately $50.0 million, or $1.02 per share, was declared in accordance with the company’s established dividend policy.
Overview:
Sherman Miller, President and CEO of Cal-Maine Foods, commented, “Our financial and operational results for the first quarter represent a robust start to fiscal 2025. This performance reflects a favorable demand for shell eggs throughout most of the quarter, coupled with significantly higher market prices compared to the first quarter of last year. However, the national egg supply has been impacted by recent outbreaks of highly pathogenic avian influenza (HPAI). As of September 1, 2024, the total U.S. hen population decreased by approximately 4.5% below the five-year average, totaling 307.6 million layers. We have worked diligently to boost our production and acquire eggs from external suppliers, enabling us to deliver more eggs to the market despite the limited supply. Our increased volumes and sales were bolstered by recent acquisitions that expanded our production capacity, as well as consistent organic growth. Our operations ran smoothly as we continued to expand our market presence and meet the demands of our valued customers.
“We believe that consumers today are seeking affordable and nutritious protein options, and our shell eggs and egg products fulfill that need. Our diverse product mix has given us a competitive edge. We aim to cater to evolving consumer preferences by offering a variety of options, including conventional, cage-free, organic, brown, free-range, pasture-raised, and nutritionally enhanced eggs. Additionally, we have broadened our product range with value-added egg products through our previous investment in Meadowcreek Foods, LLC for hard-cooked eggs, and our recent strategic investment in Crepini Foods LLC. This new venture specializes in egg products and prepared foods, allowing us to leverage Crepini’s established brand of quality offerings, such as egg wraps, protein pancakes, crepes, and wrap-ups, to reach major retailers nationwide. We see significant potential to utilize our scale and provide more choices through value-added egg products to our existing customer base.
“Following the close of the first quarter of fiscal 2025, Hurricane Helene struck the southeastern United States, including areas where Cal-Maine Foods operates and where our contract farmers are based. We are currently assessing the storm’s impact on our personnel, birds, facilities, and operations; however, we are relieved to report that all of our employees and contractors are safe, and any loss of company-owned production assets appears minimal and unlikely to be material. We commend our operational teams in the affected regions for successfully executing our contingency plans during this severe weather event. Our top priority remains the safety of our employees and the welfare of the birds under our care. We are committed to serving our customers, and we expect any service disruptions to be minimal. We are saddened by the devastation in the affected communities and are thankful for the courageous efforts of first responders dealing with the aftermath of the storm as conditions allow,” Miller added.
Sales Performance & Operating Highlights:
Max Bowman, CFO of Cal-Maine Foods, noted, “For the first quarter of fiscal 2025, our net sales were $785.9 million, a significant increase from $459.3 million in the same period last year. This surge in sales was mainly driven by higher average selling prices for shell eggs and an increase in total dozens sold.
“We sold 310.0 million dozens of shell eggs in the first fiscal quarter, compared to 273.1 million dozens in the first quarter of fiscal 2024. Conventional egg sales totaled 200.0 million dozens, up from 181.5 million dozens the previous year, marking a 10.2% increase. Specialty egg volumes rose by 20.1%, with 110.0 million dozens sold in the first quarter of fiscal 2025 compared to 91.6 million dozens in the first quarter of fiscal 2024.
“Net income attributable to Cal-Maine Foods for the first quarter of fiscal 2025 was $150.0 million, or $3.06 per diluted share, compared to $926,000, or $0.02 per diluted share, for the same quarter last year.
“Overall, our first-quarter farm production costs per dozen were 11.7% lower than the previous year, primarily due to more favorable commodity prices for key feed ingredients. Feed costs per dozen decreased by 17.3% compared to the first quarter of fiscal 2024. However, our egg purchases and other costs (including inventory changes) rose significantly from the previous quarter, mainly due to higher shell egg prices and an increase in dozens purchased resulting from production losses caused by HPAI outbreaks at our facilities.
“Current forecasts for corn supply suggest an improved stocks-to-use ratio, indicating more favorable prices in the near term. However, we continue to face uncertainties from external factors, including weather patterns and global supply chain disruptions, which may result in ongoing price volatility,” said Bowman.
