October 8, 2013

Cal-Maine's Q1 2014 net sales up 17% to US$319.5 million

In the first quarter of fiscal 2014, US egg producer, Cal-Maine Foods, has reported a 17% sales increase with net sales of US$319.5 million.

Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated, "We are pleased with our sales performance for the first quarter of fiscal 2014, marking a strong start to fiscal 2014. These results reflect higher volumes and higher average selling prices compared with the first quarter last year. Specialty eggs have continued to gain in popularity with consumers and accounted for 16.2% of dozens sold and 24.6% of total shell egg sales for the first quarter. The average selling price of specialty eggs also increased 5.5% over the first quarter last year. Cal-Maine Foods is well positioned to capitalise on the growing demand for specialty eggs and we will continue to focus on enhancing our product mix with a full complement of conventional, cage-free, organic and nutritionally enhanced eggs."

Baker added that their operations have run well this summer, however, overall production costs were higher during the first quarter than a year ago.

"Market prices for grain have remained high through the first quarter and our feed costs were up US$0.034/dozen, or 6.7%, compared with the same period last year. However, we are encouraged by the favourable growing conditions this summer, which have improved the yield of this year's corn and soy crops. As a result, prices have already come down from the previous high levels and we expect to incur lower feed costs for the remainder of fiscal 2014. Regardless of market conditions, we remain focused on managing our operations efficiently and meeting the needs of our customers. We believe we have the right growth strategy in place and look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2014," Baker said.

Cal-Maine purchased the commercial egg assets of Maxim Production Co., Inc. on November 15, 2012. Excluding the acquisition, for the 13-week period ended August 31, 2013, net sales were US$291.6 million and dozens sold were 218.3 million, an increase of US$18.7 million and 8.2 million dozen compared to the same period last year.