Cal-Maine Foods Q3 2023 Earnings Report
Key Takeaways
Cal-Maine Foods reported net sales of $997.5 million and net income of $323.2 million for the third quarter of fiscal 2023. The results reflect significantly higher market prices and favorable demand, boosted by the busy holiday season. The company remained focused on disciplined management of costs despite continued inflationary pressures and a tight labor market.
Quarterly net sales reached $997.5 million, driven by strong conventional egg prices.
Net income for the quarter was $323.2 million, or $6.62 per diluted share.
A cash dividend of $2.20 per share was announced, totaling $107.7 million.
The company focused on expanding specialty egg production capacity while managing costs amidst inflationary pressures and a tight labor market.
Cal-Maine Foods
Cal-Maine Foods
Cal-Maine Foods Revenue by Segment
Forward Guidance
The Company believes the HPAI outbreak will continue to exert downward pressure on the overall supply of eggs, and the duration of these effects will depend in part on the timing of replenishment of the U.S. layer hen flock. For fiscal 2023, the Company expects continued corn and soybean upward pricing pressures and further market volatility to affect feed costs.
Positive Outlook
- Strict biosecurity protocols are in place to mitigate the risk of future outbreaks.
- The company is working with government and industry groups to manage responses to potential outbreaks.
- Hatch rates are increasing, indicating potential future growth in layer flocks.
- Cal-Maine Foods is focused on meeting customer demand for cage-free eggs.
- The company is committed to being a sustainable and reliable supplier of fresh shell eggs.
Challenges Ahead
- The HPAI outbreak is expected to continue to put downward pressure on the overall supply of eggs.
- The duration of the HPAI impact depends on the timing of replenishment of the U.S. layer hen flock.
- Continued upward pricing pressures for corn and soybean are expected.
- Further market volatility is expected to affect feed costs.
- The layer hen inventory is not projected to exceed 328 million again until January of 2024.