Sanderson Farms reported a drop in full-year earnings today (17 December) as increased costs and lower pricing dented the US poultry group’s margins.
Operating income in the 12 months to 31 October fell to US$335.9m, compared to $381.9m in the prior-year period. Sanderson’s operating performace reflected an increase in cost of sales and selling, general and administrative expenses.
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The decline in net income was less steep thanks to a reduction in financial costs. Net income slipped to $216m from $249m in the comparable period of last year.
The poultry processor, however, stressed sales were up, boosted by “record” volumes. Revenue rose 1% to $2.8bn.
Chairman and CEO Joe Sanderson said: “We reported record annual sales of $2.8bn, a 1% increase over fiscal 2014. While overall poultry market prices declined compared with fiscal 2014, grain prices were significantly lower during the year when compared with fiscal 2014. For the year, we sold 3.418bn pounds of dressed poultry, another record, compared with 3.045bn pounds in fiscal 2014.”
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By GlobalData
