US egg producer Cal-Maine has reported a jump in first-quarter profits on the back of higher sales and lower feed costs.
Cal-Maine posted net income of US$27.7m for the 13 weeks to 30 August, compared to $8.8m a year earlier. Operating income more than trebled from $11.1m to $41.2m.
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Net sales increased 12% to $356.9m. Cal-Maine benefited from higher selling prices but also managed to grow volumes. The company’s average feed costs were lower, falling 11% year-on-year.
Cal-Maine chairman, president and CEO Dolph Baker noted USDA report that said the national laying flock was at a “record level”. He also pointed to legislation on egg standards in California that will be implemented in January.
However, he added: “We believe the fundamentals of our business support continued growth and profitability for fiscal 2015.”
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