Soaring Egg Prices Lead Nation’s Largest Producer to Record Sales
The largest U.S. egg producer on Wednesday said its quarterly sales more than doubled from those of the same period last year as rapid inflation and the effects from an avian-influenza outbreak pushed prices higher.
Sickened chickens, which farmers destroy to limit the disease’s spread, have led to reduced egg production and have helped drive egg prices higher, providing a boost for the Ridgeland, Miss.-based company in its fiscal second quarter.
Cal-Maine’s net average selling price per dozen eggs for the three months ended Nov. 26 was $2.88, up from $2.37 in the prior quarter and $1.15 a year earlier, the company said. As of Wednesday, the company said there were no positive tests for the virus at its facilities.
Prices for conventional eggs exceeded prices for specialty eggs—such as brown or organic eggs—for the fourth quarter in a row, “which is atypical historically,” the company said.
As a result, more consumers looked to specialty eggs, Cal-Maine said.
Cal-Maine’s conventional egg volumes sold decreased 2.2% in the period, while specialty egg volumes sold climbed 24.1%, the company said.
The highly pathogenic avian influenza outbreak in the U.S. has so far this year led to the deaths of nearly 58 million birds, including more than 43 million egg-laying chickens, according to Agriculture Department data. The total supply of egg-laying chickens has fallen about 5% from the start of January to December.
It is the deadliest outbreak in U.S. history and has driven up the price of other poultry products, such as turkey meat.
Retail egg prices have increased more than any other grocery store item in 2022, climbing more than 30% from January to early December compared with the same period a year earlier, and outpacing overall food and beverage prices, according to the data firm Information Resources Inc.
Overall for the quarter, the company said net income rose to $198.6 million compared with $1.17 million for the same period a year earlier. On a per-share basis, earnings were $4.07, up from 2 cents a share a year earlier. Analysts polled by FactSet had forecast earnings of $4.24 per share.
Sales jumped to $801.7 million from $381.7 million a year ago, beating expectations of $797.80 million, according to FactSet.
“Consumer demand for shell eggs continued to be good in the quarter, especially leading up to the Thanksgiving holiday,” Chief Executive
Sherman Miller
said.
Sales of specialty eggs reached a record high of $227.8 million, accounting for 29.4% of total shell egg revenue, Cal-Maine said.
Cost of sales increased 43% to $483.9 million, with farm-production costs per dozen eggs increasing 22%.
For the year, Cal-Maine’s stock is up about 69%.
—Patrick Thomas contributed to this article.
Write to Sabela Ojea at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
The largest U.S. egg producer on Wednesday said its quarterly sales more than doubled from those of the same period last year as rapid inflation and the effects from an avian-influenza outbreak pushed prices higher.
Sickened chickens, which farmers destroy to limit the disease’s spread, have led to reduced egg production and have helped drive egg prices higher, providing a boost for the Ridgeland, Miss.-based company in its fiscal second quarter.
Cal-Maine’s net average selling price per dozen eggs for the three months ended Nov. 26 was $2.88, up from $2.37 in the prior quarter and $1.15 a year earlier, the company said. As of Wednesday, the company said there were no positive tests for the virus at its facilities.
Prices for conventional eggs exceeded prices for specialty eggs—such as brown or organic eggs—for the fourth quarter in a row, “which is atypical historically,” the company said.
As a result, more consumers looked to specialty eggs, Cal-Maine said.
Cal-Maine’s conventional egg volumes sold decreased 2.2% in the period, while specialty egg volumes sold climbed 24.1%, the company said.
The highly pathogenic avian influenza outbreak in the U.S. has so far this year led to the deaths of nearly 58 million birds, including more than 43 million egg-laying chickens, according to Agriculture Department data. The total supply of egg-laying chickens has fallen about 5% from the start of January to December.
It is the deadliest outbreak in U.S. history and has driven up the price of other poultry products, such as turkey meat.
Retail egg prices have increased more than any other grocery store item in 2022, climbing more than 30% from January to early December compared with the same period a year earlier, and outpacing overall food and beverage prices, according to the data firm Information Resources Inc.
Overall for the quarter, the company said net income rose to $198.6 million compared with $1.17 million for the same period a year earlier. On a per-share basis, earnings were $4.07, up from 2 cents a share a year earlier. Analysts polled by FactSet had forecast earnings of $4.24 per share.
Sales jumped to $801.7 million from $381.7 million a year ago, beating expectations of $797.80 million, according to FactSet.
“Consumer demand for shell eggs continued to be good in the quarter, especially leading up to the Thanksgiving holiday,” Chief Executive
Sherman Miller
said.
Sales of specialty eggs reached a record high of $227.8 million, accounting for 29.4% of total shell egg revenue, Cal-Maine said.
Cost of sales increased 43% to $483.9 million, with farm-production costs per dozen eggs increasing 22%.
For the year, Cal-Maine’s stock is up about 69%.
—Patrick Thomas contributed to this article.
Write to Sabela Ojea at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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