US egg processor Cal-Maine Foods reported a decline in full-year profits as it was hit by rising feed costs.
The company said today (25 July) that for the year ended 28 May, net income was down to US$60.8m against $67.8m in the prior year. However, net sales rose 3.5% on the prior year to reach $942m.
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The results were mirrored in Cal-Maine’s fourth quarter. Net income fell to $7.3m against $21m in the same period of the previous year. Sales rose to $242.4m against $222.1m a year earlier.
Cal-Maine Foods president and CEO Dolph Baker said the company’s fourth-quarter results reflect a “more challenging environment compared with the previous year period”.
“The higher retail demand associated with a late Easter holiday and a slightly smaller national flock helped boost egg prices by an average of five cents per dozen for the quarter. However, feed costs have continued to escalate and were up 12 cents per dozen compared with the same period a year ago, which affected our profitability for the fourth quarter,” he said.
The company said it is encouraged by “strong retail demand trends” but that it anticipates that feed costs will “remain very high and volatile”.
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By GlobalData
