Cal-Maine Foods reported its 2024 fiscal year net sales at US$2.3 billion compared to US$3.1 billion for fiscal 2023.
The decline was primarily due to a decrease in the net average selling prices for conventional and specialty eggs in 2024, compared to 2023, according to Cal-Maine Foods Vice President and Chief Financial Officer Max Bowman.
The inflated shell egg prices seen in 2023 were due to supply chain disruptions caused by highly pathogenic avian influenza (HPAI) outbreaks in the U.S.
Additionally, in the fourth quarter of fiscal 2024, Cal-Maine’s net sales were US$640.8 million compared to US$688.7 million in the same quarter last year. Bowman added that the decline in net sales for both fiscal 2024 and the fourth quarter were partially due to fiscal 2024 being one week shorter than fiscal 2023.
Bowman stated: “Overall, our fourth quarter farm production costs per dozen were 14.3% lower compared to the prior-year period, primarily due to more favorable commodity pricing for key feed ingredients. For fiscal 2024, farm production costs per dozen were down 8.3%, primarily tied to lower feed costs. For the fourth quarter of fiscal 2024, feed costs per dozen were down 24.9% compared with the fourth quarter of fiscal 2023, and feed costs per dozen for fiscal 2024 were 18.6% lower compared with fiscal 2023.”
Concerning the producer’s farm production costs, Bowman explained that current market indications for corn are improving and imply that lower prices could be coming.
Cal-Maine’s acquisitions in fiscal 2024
Over the fiscal 2024 year, which ended on June 1st, and shortly thereafter, the producer completed acquisitions that Cal-Maine Foods President and Chief Executive Officer Sherman Miller said were driving the company’s organic growth initiatives. The purchases included Fassio Egg Farms, a former Tyson Foods broiler processing plant, hatchery and feed mill in Dexter, Missouri, and ISE America, Inc.
On the acquisitions, Miller stated: “We have commenced work on the acquired Dexter facilities to repurpose the assets for use in shell egg production and processing. We are partnering with local farmers, working with local contractors and businesses and making significant investments in the Dexter area to renovate and improve the facilities, with future plans for expanded shell egg and value-added egg product opportunities.”
