Cal-Maine Foods, Inc. (NASDAQ: CALM), the largest producer and distributor of fresh shell eggs in the United States, today announced its financial results for the fourth quarter of fiscal 2024 (thirteen weeks) and the entire fiscal year 2024 (fifty-two weeks) ended June 1, 2024.
Fourth Quarter and Fiscal Year 2024 Highlights
- Quarterly net sales: $640.8 million
- Quarterly net income: $113.2 million, or $2.32 per diluted share
- Fiscal year net sales: $2.3 billion
- Fiscal year net income: $277.9 million, or $5.69 per diluted share
- Cash dividend: $37.8 million, or $0.77 per share
Overview
Sherman Miller, president and CEO of Cal-Maine Foods, stated, “We are pleased to report solid performance for the fourth quarter amidst a challenging period for both Cal-Maine Foods and our industry. We are proud of our managers and employees who managed our operations dynamically despite recent outbreaks of highly pathogenic avian influenza (HPAI). We continued to meet customer demands despite these interruptions.”
Miller highlighted that throughout the year, the company executed its growth strategy effectively, maintaining a favorable product mix in line with customer demand. The company also completed two asset acquisitions in fiscal 2024 and another one shortly after the fiscal year ended. These acquisitions include assets of Fassio Egg Farms, Inc. in Erda, Utah, and a former broiler processing plant, hatchery, and feed mill in Dexter, Missouri, previously operated by Tyson Foods. Cal-Maine Foods is investing significantly in repurposing these facilities for shell egg production and processing.
After the fiscal year ended, Cal-Maine Foods acquired substantial assets of ISE America, Inc., which is expected to enhance their market reach in the Northeast and Mid-Atlantic states.
Sales Performance & Operating Highlights
Max Bowman, vice president and CFO, reported net sales of $640.8 million for the fourth quarter of fiscal 2024, compared to $688.7 million for the same period last year, attributing the decline to lower sales volumes due to the shorter quarter in fiscal 2024. For the full fiscal year, net sales were $2.3 billion, down from $3.1 billion in fiscal 2023, primarily due to a decrease in net average selling prices for both conventional and specialty eggs.
Cal-Maine Foods sold 285.6 million dozen shell eggs in the fourth quarter of fiscal 2024, compared to 296.6 million dozen in the fourth quarter of fiscal 2023. Conventional egg sales declined by 7.0% to 180.5 million dozen, while specialty egg volumes increased by 2.5% to 105.0 million dozen.
Net income for the fourth quarter of fiscal 2024 was $113.2 million, or $2.32 per diluted share, compared to $110.9 million, or $2.27 per diluted share, for the same period last year. Fiscal year net income was $277.9 million, or $5.69 per diluted share, down from $758.0 million, or $15.52 per diluted share, in fiscal 2023.
Farm production costs per dozen decreased by 14.3% in the fourth quarter and 8.3% for the full fiscal year, primarily due to lower feed costs. Feed costs per dozen were down 24.9% for the fourth quarter and 18.6% for the full fiscal year.
HPAI & Table Egg Supply Outlook
HPAI outbreaks have continued to impact U.S. poultry flocks. From November 2023 to July 2024, approximately 32.8 million commercial laying hens and pullets have been depopulated. Cal-Maine Foods experienced outbreaks in Kansas and Texas, resulting in the depopulation of approximately 3.1 million laying hens and 577,000 pullets. Both locations have been cleared to resume operations, with repopulation expected to be completed by year-end.
Despite robust biosecurity measures, no farm is immune to HPAI, which remains widespread in the wild bird population. However, HPAI cannot be transmitted through safely handled and properly cooked eggs.
Looking Ahead
Miller expressed optimism for fiscal 2025, citing strong demand for shell eggs as consumers seek affordable protein options. Cal-Maine Foods plans to expand its production capacity for specialty and cage-free eggs and is committed to maintaining a reliable and sustainable supply of fresh shell eggs and egg products.
Dividend Payment
For the fourth quarter of fiscal 2024, Cal-Maine Foods will pay a cash dividend of approximately $0.77 per share to holders of its common and Class A common stock, payable on August 20, 2024, to shareholders of record on August 5, 2024.
