Cal-Maine Foods, Inc. Reports First Quarter 2025 Earnings
Cal-Maine Foods, Inc. (NASDAQ: CALM), the largest producer and distributor of fresh shell eggs in the United States, has announced its financial results for the first quarter of fiscal year 2025, ending August 31, 2024.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change |
|---|---|---|---|
| Total Revenue (USD) | 785.9 million | 459.3 million | +71.1% |
| Earnings Per Share (EPS) - Basic | $3.08 | $0.02 | +$3.06 |
| Net Income (USD) | 150.0 million | 0.9 million | +16,552.9% |
Cal-Maine Foods showed a significant increase in revenue and net income year-over-year (YoY), driven by a notable rise in egg prices due to supply constraints, and higher volumes sold across all product categories. The company's earnings per share surged to $3.08 compared to $0.02 in the same quarter of the previous year, reflecting a robust financial performance.
Revenue Performance by Segment
| Segment | Q1 FY2025 Revenue (USD) | Q1 FY2024 Revenue (USD) | YoY Change |
|---|---|---|---|
| Conventional Shell Egg Sales | 484.7 million | 225.3 million | +115.2% |
| Specialty Shell Egg Sales | 256.8 million | 208.7 million | +23.0% |
| Egg Products | 35.2 million | 22.2 million | +58.3% |
The company's conventional shell egg sales doubled, owing to a 95.3% increase in prices and higher sales volumes. The rise in specialty shell egg sales was driven by increased consumer demand and regulatory mandates for cage-free egg production in several states.
Key Developments and Operational Highlights
- Acquired ISE America, Inc.'s assets, significantly enhancing market reach in the Northeast and Mid-Atlantic regions.
- Invested $111.5 million in the acquisition, expanding production capacity and distribution networks.
- Recorded a gross profit of $247.2 million, up from $45.4 million year-over-year, as a result of higher selling prices and cost management.
Management Commentary
Max P. Bowman, Vice President and Chief Financial Officer, emphasized the strategic importance of the recent acquisitions in expanding the company's market presence and the focus on transitioning towards more cage-free production to meet evolving consumer and regulatory demands.
Dividend Announcement
Cal-Maine Foods declared a cash dividend totaling approximately $50.0 million, or $1.019 per share, payable on November 14, 2024, to shareholders of record as of October 30, 2024.
Forward Guidance
While Cal-Maine Foods has not provided detailed forward guidance, the company remains focused on navigating market challenges, including HPAI-related disruptions, and is committed to strategic investments supporting long-term growth.
Stock Price Movement
Following the earnings announcement, Cal-Maine Foods' stock experienced a 2.05% increase, reflecting investor confidence in the company's performance and strategic direction.
This earnings report showcases Cal-Maine Foods' resilience and adaptability in a challenging yet opportunity-rich market environment.
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