Cal-Maine Foods, the largest producer and distributor of fresh shell eggs in the United States has announced strong financial results for the fourth quarter and fiscal year ended June 2, 2012.
For the fourth quarter of fiscal 2012, net sales were $275.2 million compared with net sales of $242.4 million for the fourth quarter a year ago. The Company reported net earnings of $37.3 million, or $1.56 per basic share, for the fourth quarter of fiscal 2012 compared with net earnings of $7.3 million, or $0.30 per basic share, for the same period last year. Results for the fourth quarter of fiscal 2012 include a one-time gain of approximately $27.0 million, or $1.12 per share, after tax, as a result of a distribution from Eggland’s Best, Inc. related to the new joint venture between Eggland’s Best, Inc. and Land O’Lakes, Inc., announced on May 1, 2012.
Commenting on the results, Dolph Baker, president and chief executive officer of Cal-Maine Foods, stated, “Our financial and operating results for the fourth quarter marked a strong finish to fiscal 2012. These results reflect higher volumes with an 8.6% increase in eggs produced and 11.0% increase in eggs sold compared with the same period a year ago. While we had an extra week of sales compared with the fourth quarter of fiscal 2011, we also had less Easter-related business fall in the fourth quarter due to the earlier holiday schedule in 2012.
“For the year, we were pleased to exceed $1.0 billion in sales for the first time in our history,” Baker noted. “Retail demand was strong and helped the market absorb a slightly higher egg supply than we experienced in fiscal 2011. Sales of specialty eggs have continued to rise, accounting for 16.3% of our total number of eggs sold and over 24.0% of sales revenue for the year. We expect specialty eggs will continue to gain market share over regular eggs as consumer demand trends shift toward the perceived health benefits of organic and natural food alternatives.
“Our operations have continued to run well in fiscal 2012. While our feed costs were high and volatile during the year, our management team has remained focused on executing our strategy of being an efficient, low cost producer. We expect feed costs will continue to rise for the near term, especially in light of the severe drought this summer and the damage to the national corn crop.
“We believe we will continue to improve our product mix and expand our sales of specialty eggs, both in our current markets and through the new joint venture with Eggland’s Best, Inc. and Land O’Lakes. Our recent acquisition of the Pilgrim’s Pride egg operations is expected to further enhance our sales efforts in the important Texas markets. We will continue to look for additional strategic acquisition opportunities and pursue a growth strategy that we believe will reward both our customers and shareholders,” Baker concluded.
The Company, which is headquartered in Jackson, Mississippi, sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
Source: Cal-Maine Foods