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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.

Total Revenue
$332M
Previous year: $293M
+13.3%
EPS
-$0.37
Previous year: -$0.4
-7.5%
Specialty Dozens Sold
28.9
Previous year: 0.26
+11015.4%
Specialty Sales Revenue
$43
Previous year: $0.452
+9413.3%
Feed Cost/Dozen
$0.545
Gross Profit
$6.65M
Previous year: $16.8M
-60.4%
Cash and Equivalents
$90.4M
Previous year: $193M
-53.3%
Free Cash Flow
-$35.3M
Previous year: -$40.1M
-11.9%
Total Assets
$1.21B
Previous year: $1.17B
+3.8%

Cal-Maine Foods

Cal-Maine Foods

Cal-Maine Foods Revenue by Segment

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.