Cal-Maine Foods, the largest U.S. egg producer, has been thriving in the face of the uncertainty facing the egg industry over concerns like avian flu and cage-free mandates.
Cal-Maine’s sales for the third fiscal quarter were $447.5 million, a quarterly record for the company and an increase of 33% over the same quarter last year. Gross profit was $91.6 million, nearly double the same quarter last year. For the year to date, sales and gross profit were up 19% and 16% respectively.
In a statement, CEO Dolph Baker attributed the success partly to Cal-Maine raising its prices. The net selling price rose 29%, to $1.612 per dozen. The gross margin was 19.2%, an increase of about 6 percentage points.
Total volume shipped was 287.7 million dozen eggs, an increase of 2.9%. That was driven by sales of specialty eggs, such as organic or cage-free. Revenue from specialty eggs was $182.9 million, comprising 39.4 of total shell egg revenue.
“Cal-Maine Foods’ differentiated product mix and proven operating model continue to support our ability to meet changing customer demand and extend our market reach,” Baker said in a statement. “Importantly, we have the financial strength to support our organic growth and expansion opportunities and consider potential acquisitions that are accretive to our business.”
Baker also noted that none of Cal-Maine’s flocks have reported any instances of the avian flu that has been afflicting poultry throughout the U.S.
