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Nov 28, 2020
Cal-Maine Foods Q2 2021 Earnings Report
Reported an increase in net sales and a return to profitability, driven by favorable demand trends for shell eggs.
Key Takeaways
Cal-Maine Foods reported net sales of $347.3 million for the second quarter of fiscal 2021, an 11.5% increase compared to the previous year. The company achieved a net income of $12.2 million, or $0.25 per basic and diluted share, a significant improvement from the net loss of $10.1 million, or $0.21 per share, in the second quarter of fiscal 2020.
Net sales increased by 11.5% to $347.3 million compared to the second quarter of fiscal 2020.
Net income was $12.2 million, or $0.25 per share, compared to a net loss of $10.1 million, or $0.21 per share, in the prior-year period.
Total dozens sold increased by 4.8% to 273.7 million, the highest of any second quarter period.
Specialty egg sales totaled $134.1 million, representing 39.7% of egg sales revenue, compared to 38.2% in the second quarter of fiscal 2020.
Cal-Maine Foods
Cal-Maine Foods
Forward Guidance
The company believes retail demand for eggs will remain strong and is optimistic that effective vaccines will soon be widely available, restoring consumer confidence and allowing restaurants and food service operators to resume regular schedules.
Positive Outlook
- Retail demand for eggs expected to remain strong.
- Optimistic about vaccine availability restoring consumer confidence.
- Restaurants and food service operators expected to resume regular schedules.
- Well positioned to execute growth strategy.
- Strong balance sheet with financial flexibility to support growth initiatives.
Challenges Ahead
- Uncertain environment due to COVID-19 pandemic.
- Feed costs started trending higher midway through the second quarter and continued volatility is expected.
- Increased export demand for soybeans and corn is placing pressure on domestic supplies.
- Ongoing uncertainties and supply chain disruptions related to the COVID-19 outbreak.
- Weather fluctuations and geopolitical issues surrounding trade agreements and international tariffs will continue to affect market prices.