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Nov 30, 2024

Cal-Maine Foods Q2 2025 Earnings Report

Cal-Maine Foods reported a strong financial and operating performance driven by robust demand and higher market prices for shell eggs.

Key Takeaways

Cal-Maine Foods reported a significant increase in net sales and net income for the second quarter of fiscal 2025, driven by robust demand for shell eggs and higher market prices. Net sales reached $954.7 million, and net income was $219.1 million, or $4.47 per diluted share. The company benefited from increased dozens sold, including a seasonal boost and sales from recent acquisitions, and managed production effectively despite supply restrictions due to avian influenza.

Net sales for the quarter reached $954.7 million, up from $523.2 million in the same period last year.

Net income was $219.1 million, or $4.47 per diluted share, compared to $17.0 million, or $0.35 per diluted share, for the second quarter of fiscal 2024.

Total dozens of shell eggs sold increased to 329.8 million, compared to 288.2 million in the prior-year quarter.

The company is expanding cage-free capacity and egg products offerings through strategic investments.

Total Revenue
$955M
Previous year: $523M
+82.5%
EPS
$4.47
Previous year: $0.65
+587.7%
Specialty Dozens Sold
36.5
Previous year: 33.2
+9.9%
Feed Cost/Dozen
$0.483
Previous year: $0.554
-12.8%
Gross Profit
$356M
Previous year: $91.1M
+290.7%
Cash and Equivalents
$797M
Previous year: $568M
+40.4%
Free Cash Flow
$93.6M
Previous year: $10.9M
+762.3%
Total Assets
$2.49B
Previous year: $1.97B
+26.6%

Cal-Maine Foods

Cal-Maine Foods

Cal-Maine Foods Revenue by Segment

Forward Guidance

Cal-Maine Foods is focused on managing operations effectively, expanding production capacity and product mix, and providing quality products.

Positive Outlook

  • Optimizing aspects of the business that can be controlled.
  • Extending leadership role in supporting the nation’s food supply.
  • Expanding shell egg production capacity and product mix.
  • Expanding egg products portfolio.
  • Leveraging existing distribution channels and extending reach in foodservice and retail marketplaces.

Challenges Ahead

  • Significant challenges within the Company and the entire egg industry due to the ongoing outbreaks of HPAI.
  • Risks and hazards inherent in the shell egg business (including disease, pests, weather conditions and potential for recall).
  • Changes in the demand for and market prices of shell eggs and feed costs.
  • Risks relating to changes in inflation and interest rates.
  • Global instability, including as a result of the war in Ukraine, the conflicts in Israel and surrounding areas and attacks on shipping in the Red Sea.