US egg processor Cal-Maine Foods reported a decline in full-year profits as it was hit by rising feed costs.
The company said today (25 July) that for the year ended 28 May, net income was down to US$60.8m against $67.8m in the prior year. However, net sales rose 3.5% on the prior year to reach $942m.
Go deeper with GlobalData
The results were mirrored in Cal-Maine’s fourth quarter. Net income fell to $7.3m against $21m in the same period of the previous year. Sales rose to $242.4m against $222.1m a year earlier.
Cal-Maine Foods president and CEO Dolph Baker said the company’s fourth-quarter results reflect a “more challenging environment compared with the previous year period”.
“The higher retail demand associated with a late Easter holiday and a slightly smaller national flock helped boost egg prices by an average of five cents per dozen for the quarter. However, feed costs have continued to escalate and were up 12 cents per dozen compared with the same period a year ago, which affected our profitability for the fourth quarter,” he said.
The company said it is encouraged by “strong retail demand trends” but that it anticipates that feed costs will “remain very high and volatile”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
