Cal-Maine Foods has seen third-quarter profits fell 46%, on lower egg prices and a decline in demand from the foodservice industry and restaurants due to the economic downturn.

The company posted the figures today (30 March), a set of numbers affected by a recession that has seen consumers increasingly eating at home.

“Egg prices were lower compared with the year earlier period, which were at record high levels. Egg demand at retail stores was very good. However, food service and restaurant volumes were reduced because of the slowdown in the economy and fewer consumers eating away from home,” said chairman and CEO Fred Adams.

The egg producer earned US$30.8m for the three-month period ended 28 February. That compares with $57.2m in the same quarter a year earlier.

Sales fell 3% in the third quarter to $270m, down from $278m.

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.

Company Profile – free sample

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
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

For the first nine months, net sales increased to $715.2m, up from $680.3m last year. However, net income fell to $69.2m, compared with $115.3m for the year-earlier period.

“For the year ahead, we expect to see egg supply balanced with demand. Feed costs will continue to be relatively high and volatile,” Adams warned.