Cal-Maine Foods Q1 2021 Earnings Report
Key Takeaways
Cal-Maine Foods reported a net loss of $19.4 million for the first quarter of fiscal 2021, despite a 21.4% increase in net sales to $292.8 million. The results reflect continued challenging market conditions due to the COVID-19 pandemic, with volatile egg prices and decreased food service demand impacting profitability. However, retail demand remained strong, and specialty egg sales increased.
Net sales increased by 21.4% to $292.8 million compared to the first quarter of fiscal 2020.
The company reported a net loss of $19.4 million, or $0.40 per basic and diluted share.
Total dozens sold were up 3.8% due to strong retail demand, offsetting lower food service demand.
Specialty egg sales totaled $129.2 million, representing 45.2% of egg sales revenue.
Cal-Maine Foods
Cal-Maine Foods
Cal-Maine Foods Revenue by Segment
Forward Guidance
The company remains focused on managing operations efficiently and sustainably, while continuing to pursue its growth strategy and expand its specialty egg business.
Positive Outlook
- Overall demand is expected to improve as food service sales return to pre-COVID-19 levels.
- Current supplies of corn and soybeans are favorable, and the company believes it will continue to have an adequate supply of both grains in fiscal 2021.
- The company is working with customers to ensure a smooth transition in meeting their goals for cage-free egg supply.
- Cal-Maine Foods has donated over 900,000 dozen eggs in the first quarter of 2021 to provide food assistance.
- The company will continue to pursue its growth strategy and the further expansion of our specialty egg business.
Challenges Ahead
- Market prices for eggs remained volatile over the first quarter and decreased overall compared to prices at the end of fiscal 2020.
- Demand from food service customers is still well below pre-quarantine levels, which is believed to have constrained the price of shell eggs in the retail market.
- Current ongoing uncertainties and supply chain disruptions related to the COVID-19 outbreak may lead to further price volatility.
- Weather fluctuations may lead to further price volatility.
- Geopolitical issues surrounding trade agreements and international tariffs may lead to further price volatility.