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Nov 27, 2021

Cal-Maine Foods Q2 2022 Earnings Report

Cal-Maine Foods reported increased sales driven by improved shell egg pricing and sales volumes, returning to profitability despite higher costs.

Key Takeaways

Cal-Maine Foods reported a 12.5% increase in net sales to $390.9 million, driven by improved shell egg pricing. The company reported a net income of $1.2 million, or $0.02 per basic and diluted common share.

Net sales increased by 12.5% to $390.9 million compared to the prior year.

Net income was reported at $1.2 million, or $0.02 per share.

Specialty egg sales accounted for 41.1% of total shell egg revenue.

The company made a strategic investment in MeadowCreek Foods to expand its presence in the egg products sector.

Total Revenue
$391M
Previous year: $347M
+12.5%
EPS
$0.02
Previous year: $0.25
-92.0%
Specialty Dozens Sold
30.3
Specialty Sales Revenue
$41.1
Feed Cost/Dozen
$0.529
Gross Profit
$43.7M
Previous year: $58.5M
-25.2%
Cash and Equivalents
$85.2M
Previous year: $172M
-50.5%
Free Cash Flow
-$8.79M
Previous year: -$22.9M
-61.6%
Total Assets
$1.23B
Previous year: $1.2B
+2.6%

Cal-Maine Foods

Cal-Maine Foods

Cal-Maine Foods Revenue by Segment

Forward Guidance

Cal-Maine Foods expects market prices for primary feed ingredients to remain volatile due to ongoing disruptions.

Positive Outlook

  • Focusing on managing costs and running efficient operations.
  • Teams across operations have demonstrated resilience.
  • Operations have run very well with strong key performance metrics.
  • Sufficient capital to fund internal expansion projects and consider potential acquisitions.
  • Striving to meet the demands of valued customers and deliver greater value to shareholders.

Challenges Ahead

  • Current and expected inflationary headwinds.
  • Higher costs for feed, labor, packaging and delivery.
  • Market prices for primary feed ingredients expected to remain volatile.
  • Ongoing disruptions related to the COVID-19 global pandemic.
  • Weather fluctuations, geopolitical issues and overall reduced carryout levels for primary feed ingredients.