On October 1, 2024, Cal-Maine Foods Inc (CALM, Financial) released its 8-K filing reporting impressive results for the first quarter of fiscal 2025, ending August 31, 2024. The company, the largest producer and distributor of fresh shell eggs in the United States, achieved significant financial milestones, driven by favorable market conditions and strategic operational efforts.
Company Overview
Cal-Maine Foods Inc produces and sells shell eggs, primarily in the United States. The company's product portfolio includes nutritionally enhanced, cage-free, organic, and brown eggs. Cal-Maine Foods markets its shell eggs to a diverse group of customers, including grocery-store chains, club stores, and food service distributors. The company's brands include Egg-Land's, Land O' Lakes, Farmhouse, and 4-Grain. The company operates in one reportable segment: the production, grading, packaging, marketing, and distribution of shell eggs.
Performance Highlights
Cal-Maine Foods Inc reported quarterly net sales of $785.9 million, significantly surpassing the analyst estimate of $614.77 million. The company also reported a quarterly net income of $150.0 million, or $3.06 per diluted share, far exceeding the estimated earnings per share of $2.11. This performance marks a strong start to fiscal 2025 for Cal-Maine Foods.
Key Financial Achievements
The company's financial achievements are noteworthy, especially in the context of the consumer packaged goods industry. The higher sales were primarily driven by an increase in the net average selling price of shell eggs and an increase in total dozens sold. Cal-Maine Foods sold 310.0 million dozens of shell eggs in Q1 FY2025, compared to 273.1 million dozens in the same period last year. Specialty egg volumes were 20.1% higher, with 110.0 million dozens sold compared to 91.6 million dozens in Q1 FY2024.
Income Statement Highlights
| 13 Weeks Ended | August 31, 2024 | September 2, 2023 |
|---|---|---|
| Net sales | $785,871 | $459,344 |
| Cost of sales | $538,653 | $413,911 |
| Gross profit | $247,218 | $45,433 |
| Operating income (loss) | $186,957 | ($6,757) |
| Net income attributable to Cal-Maine Foods, Inc. | $149,976 | $926 |
| Net income per common share (diluted) | $3.06 | $0.02 |
Balance Sheet Highlights
| August 31, 2024 | June 3, 2023 | |
|---|---|---|
| Cash and short-term investments | $753,590 | $812,377 |
| Receivables, net | $282,551 | $162,442 |
| Inventories, net | $293,182 | $261,782 |
| Total assets | $2,390,008 | $2,184,761 |
| Total liabilities and stockholders' equity | $2,390,008 | $2,184,761 |
Operational Insights and Challenges
Cal-Maine Foods faced challenges due to the recent outbreaks of highly pathogenic avian influenza (HPAI), which led to a decline in the national egg supply. Despite this, the company managed to increase production and purchase more eggs from outside suppliers. The company's operations were supported by additional production capacity from recent acquisitions and consistent organic growth.
"Our financial and operating results for the first quarter mark a strong start to fiscal 2025 for Cal-Maine Foods. These results reflect favorable demand for shell eggs during most of the quarter and significantly higher market prices compared with the first quarter last year," stated Sherman Miller, president and chief executive officer of Cal-Maine Foods.
Future Outlook
Looking ahead, Cal-Maine Foods remains focused on expanding its capacity, including cage-free and other specialty egg production, through investments in innovative, scale-driven products and facilities. The company also aims to enhance its product portfolio through strategic acquisitions and joint ventures.
For more detailed insights and the complete financial report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Cal-Maine Foods Inc for further details.
