Sanderson Farms plans to increase its chicken processing capacity, the US group revealed today (17 December), as it booked a jump in full-year sales and earnings.
The company said that it started construction of a new poultry complex in Palestine in Texas in October. Operations at that new facility are scheduled to start in the first calendar quarter of 2015. Operating at full capacity, the Palestine facility would boost Sanderson’s group capacity by 16%.
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CEO Joe Sanderson Jr said higher full-year profits had enabled Sanderson to lower debts and position itself for future growth.
“We are pleased that our profitability during fiscal 2013 allowed us to significantly reduce outstanding debt and strengthen our balance sheet,” Mr Sanderson Jr said. “As a result, we are well positioned to continue our growth strategy.”
Net sales for fiscal 2013, which ran to the end of October, were US$2.68bn, up from $2.38bn in fiscal 2012. Net income for the year totalled $130.6m, or $5.68 per share, compared with net income of $53.9m, or $2.35 per share, for last year.
While grain prices remained at elevated levels during the fiscal year, Sanderson said sales and margins benefited from higher poultry prices.
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