US chicken processor Sanderson Farms has posted first-quarter profit gains thanks to improved margins and modestly higher sales.
For the quarter ended 31 January, Sanderson posted net profit of US$15.8m, against a loss of $6.7m last year.
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Revenue edged up 0.8% during the period to $431m, as sales through grocery retailers began to recover from the economic downturn and lower consumer spending. However, the poultry group warned that sales to restaurants and foodservice channels are unlikely to rebound in the short-term.
Sanderson said that it was able to improve gross margins in the period to 10%, up from 1.3% previously, thanks to lower chicken feed prices.
Chairman and CEO Joe Sanderson Jr. said he was pleased with the start to the year and “cautiously optimistic” about the rest of it.
“We believe that we have reached a more favourable industry balance of supply and demand levels for poultry products,” he said.
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By GlobalData
