Loading...
•
Aug 28, 2021
Cal-Maine Foods Q1 2022 Earnings Report
Cal-Maine Foods experienced a net loss despite increased sales due to challenging market conditions and higher production costs.
Key Takeaways
Cal-Maine Foods reported a net loss of $18.0 million for the first quarter of fiscal year 2022, despite a 13.3% increase in net sales to $331.7 million. Results were impacted by lower conventional egg sale volumes and higher production costs, particularly related to increased feed costs.
Net sales increased by 13.3% to $331.7 million compared to the prior-year period.
The company reported a net loss of $18.0 million, or $0.37 per basic and diluted common share.
Specialty egg sales accounted for 43.0% of total shell egg revenue.
Farm production costs per dozen produced increased by 25.4% due to higher feed costs.
Cal-Maine Foods
Cal-Maine Foods
Forward Guidance
Cal-Maine Foods is confident in its growth strategy to provide a favorable product mix, expand specialty egg production, increase capacity for cage-free production, and manage operations efficiently. The company believes it is well-positioned with sufficient capital for internal expansion and potential acquisitions.
Positive Outlook
- Confident in growth strategy to provide a favorable product mix.
- Expanding specialty egg production.
- Increasing capacity for cage-free production.
- Managing operations in an efficient and sustainable manner.
- Well-positioned with sufficient capital to fund internal expansion projects and consider potential acquisitions.
Challenges Ahead
- Expect market prices to remain elevated and volatile relative to historical prices.
- Ongoing disruptions related to the COVID-19 global pandemic.
- Weather fluctuations.
- Geopolitical issues.
- Challenging environment continues.