Cal-Maine Foods, the country’s largest producer and distributor of fresh shell eggs, today (Dec. 28) reported record results for the second quarter of fiscal 2023, driven by record egg prices at retail.
For the second quarter of its fiscal 2023 (ended Nov. 28), the company reported sales of $802 million, a 110% increase compared with the same quarter last year. Net income in the period was nearly $199 million, compared to a scant $1.2 million a year earlier. That’s $4.07 per share. All those figures are company records.
Sales and profit were driven by pricing, although volume was up 5%. Which begs the question: Where is the shortage of supply?
“These results reflect the current market environment characterized by record average selling prices for conventional eggs, primarily due to reduced supply related to the outbreak in the U.S. of highly pathogenic avian influenza and good customer demand,” said CEO Sherman Miller.
The company noted the averages selling price of conventional eggs in the quarter was $2.88 per dozen, compared with $1.15 a year earlier. Miller noted that, as of Dec. 28, “There have been no positive tests for the bird flu at any of Cal-Maine’s owned or contracted production facilities.”