USA – Cal-Maine Foods has disclosed a significant rise in net sales for the second quarter of fiscal 2025, reaching US$954.7 million.
This marks an 82% growth compared to the same period last year, driven by higher demand for shell eggs and increased egg prices.
Sherman Miller, the company’s president and CEO, attributed the revenue growth to holiday-season demand and price hikes linked to outbreaks of highly pathogenic avian influenza (HPAI) affecting supply chains.
“Demand for shell eggs surged during the quarter, bolstered by the lead-up to Thanksgiving and contributions from our June acquisition. Additionally, market prices have remained elevated due to limited supply caused by HPAI outbreaks,” Miller said.
Egg sales and cost reductions
During the quarter, Cal-Maine sold 329.8 million dozens of shell eggs, a notable increase from the 288.2 million dozens sold during the second quarter of fiscal 2024.
The company also reported a 25% rise in sales volumes for specialty eggs, with 120.2 million dozens sold compared to 95.7 million dozens in the same period last year.
Max Bowman, vice president and chief financial officer, highlighted cost improvements.
“Farm production costs per dozen decreased by 8.5%, and feed costs dropped by 12.8% compared to last year’s second quarter, further enhancing profitability,” Bowman said.
Expansion projects underway
Cal-Maine Foods has allocated US$60 million to new capital projects to expand its cage-free egg production.
This comes in addition to US$40 million announced in October 2024.
The ongoing projects include constructing five cage-free layer houses and two pullet houses in Florida, Georgia, Utah, and Texas.
These facilities are expected to increase capacity by 1.1 million cage-free layers and 250,000 pullets by summer 2025.
The company is also investing US$15 million to upgrade its processing facility in Blackshear, Georgia, to produce extended shelf-life liquid egg products.
Miller noted that the recently acquired facility in Dexter, Missouri, repurposed for shell egg production, is set to become operational next quarter.
The company is collaborating with contract growers to add 1.2 million free-range hens by fall 2025.
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