US egg firm Cal-Maine Foods has recorded an increase in third-quarter profit but said feed costs hit margins.
In the 13 weeks ended 2 March, earnings climbed to US$30.6m from $26.1m last year. Operating profit, however, slid 11.5% to $30.9m.
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CEO Dolph Baker said the company delivered a “solid” performance in the quarter but said it was affected by higher feed costs, which were up 22% on last year. These costs, he said, have continued to adversely affect its gross profit margins.
Net sales in the quarter, however, were up 18.7% to $360.4m. This reflected improved volumes from its recent acquisitions and higher average selling prices on the comparable year.
