A “disappointing” shell egg market and “challenging” conditions has led Cal-Maine Foods to report a loss for the first quarter of its financial year, with sales falling by more than 60%.
Net sales for the first quarter of fiscal 2017 were US$239.8m, a 60.7% decrease compared to $609.9m for the first quarter of fiscal 2016. Chairman, president and CEO Dolph Baker said revenue was dented by “significantly lower market price” with average selling prices down 58% year-on-year. “Our results for the first quarter of fiscal 2017 reflect a disappointing shell egg market with more challenging market conditions and significantly lower market prices than the first quarter of fiscal 2016,” he explained.
Go deeper with GlobalData
Cal-Maine reported an operating loss of $49.8m in the three months to 27 August, down from a profit of $220.7m last year. Baker said the company faced increased challenges in the period. “Our operations ran well during the summer months; however, we experienced higher farm production costs primarily due to ongoing capital improvement and conversion projects. Our feed costs per dozen produced were marginally higher compared with a year ago, with adequate supplies of grain from last fall,” Baker said.
The company made a net loss of $30.9m, compared to net income of $143m for the first quarter of fiscal 2016.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
