US egg producer, Cal-Maine Foods, has reported an increase in net sales for the second quarter of fiscal 2015 to $378.6 million, a 6.9% increase compared with net sales of $354.3 million for the second quarter of fiscal 2014.
The Company reported net income of $36.6 million for the second quarter of fiscal 2015 compared with $26.1 million for the second quarter of fiscal 2014.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, "We are pleased with the continued growth in sales and improved operating performance for the second quarter of fiscal 2015. These results reflect both a 4.2% increase in total dozens of shell eggs sold and 2.9% higher average selling prices compared with the second quarter of fiscal 2014.
"Our specialty egg sales continued to trend higher and accounted for 19.0% of dozens sold and 26.8% of total shell egg sales revenue for the second quarter. Specialty eggs continue to be an important area of focus for Cal-Maine Food's growth strategy. We have recently expanded our market reach through our latest joint venture, Southwest Specialty Eggs, LLC, with licensing agreements for the sale of Egg-Land's Best and Land O' Lakes branded specialty eggs, as well as 4Grain, Farmhouse Eggs and other premium brands in Arizona, southern California and Nevada. We will continue to identify ways to enhance our product mix and provide a variety of healthy choices for our customers."
Baker added, "We experienced strong demand and favorable market conditions during the second quarter of fiscal 2015. Our feed costs were 11.0% lower than the same period a year ago, and 10.6% lower through the first half of this fiscal year. While corn and soybean meal basis prices are still at relatively high levels, we expect to benefit from more stable feed costs in fiscal 2015 compared to our last fiscal year.
"Overall, our operations have continued to perform very well this quarter and through the first half of this fiscal year. Operating income for the second quarter of fiscal 2015 was $55.6 million compared with $40.9 million for the second quarter of fiscal 2014. These results reflect our lower costs and our focused efforts to be an efficient, low-cost producer across all of the Company's operations. We are pleased with our progress at our latest expansion projects in Florida, Kansas, Kentucky and Texas, and we believe the additional capacity and improved efficiencies will result in less dependence on outside egg purchases. We are also expanding our capacity for specialty eggs at both the Kansas and Kentucky facilities, which will enhance our ability to meet the needs of our customers."
In closing, Baker added, "We are very pleased with our performance through the first half of fiscal 2015 and look forward to the new opportunities ahead for Cal-Maine Foods. However, along with the rest of the egg industry, we will be closely monitoring the pending implementation of Proposition 2 and Assembly Bill 1437 related to egg production standards and sales in California. This legislation, scheduled to be effective January 1, 2015, could have a significant impact on egg production throughout the country. While it is too early to determine the outcome for our operations, we will continue to manage the aspects of our business we can control."