Cal-Maine Foods said it expects to see good demand for the year ahead despite seeing its full-year profits almost halve.
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Net profit dropped to US$79.5m for the 52-week period to 31 May, from $151.8m in the comparable period of the previous year.
The egg producer posted net sales of $928.8 million for the fiscal year 2009. This was down slightly on the previous year’s figure of $915.9m.
Operating income also dropped, to $121.5m from $223.6m last year.
For the fourth quarter, net sales were $213.6m compared with $235.6m for the same period of 2008. Net earnings were $10.3m, compared with $36.6m for the same period last year.
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By GlobalDataFred Adams, chairman and CEO of Cal-Maine Foods said overall results for the fourth quarter of fiscal 2009 were “good”.
“These results reflect lower egg prices than a year ago. Our feed costs for the quarter were also lower compared with the same period last year, however they were still high by historical standards. Sales of eggs at the retail level have been very strong with food service and restaurant volume continuing to lag, reflecting the current economic environment.
“For the year ahead, we expect to see good demand. We also look for feed costs to remain relatively high and volatile. Our management team is performing well,” Adams added.
