Cal-Maine Foods reports strong 2014 Q1 results
US egg producer, Cal-Maine Foods, has reported a 17% sales increase in the first quarter of fiscal 2014 with net sales of $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.
“Our operations have run well this summer, however, our overall production costs were higher during the first quarter than a year ago,” added Baker. “Market prices for grain have remained high through the first quarter and our feed costs were up 3.4 cents per 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 soybean 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.”
On November 15, 2012, the Company purchased the commercial egg assets of Maxim Production Co., Inc. Excluding the acquisition, for the thirteen-week period ended August 31, 2013, net sales were $291.6 million and dozens sold were 218.3 million, an increase of $18.7 million and 8.2 million dozen compared to the same period last year.
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