Cal-Maine Foods Inc (NASDAQ: CALM) said on Monday it concluded the fiscal fourth quarter in loss as average selling prices and conventional eggs volumes tanked in recent months. Shares of the company were down about 10% in premarket trading.
Financial performance
Cal-Maine reported $4.24 million of net loss in the fourth quarter that translates to 9 cents per share. In the comparable period of last year, it had posted $60.46 million of profit or $1.24 per share.
The largest U.S. egg producer generated $349.8 million of net sales in the quarter that concluded on 29th May versus the year-ago figure of a higher $453.3 million. According to FactSet, experts had forecast the company to note $391.2 million of net sales in Q4. In the prior quarter (Q3), Cal-Maine’s sales had jumped 3.9%.
Average selling price
Cal-Maine sold a dozen eggs at a net average selling price of $1.318 in the recent quarter – a decline from $1.575 last year. Speciality eggs sales were valued at $131.2 million in the fourth quarter compared to $133.3 in the same quarter of the previous year.
Speciality eggs made up 39% of the declines in Q4 egg sales. Selling price in the fourth quarter of last year had climbed to a record high as the Coronavirus pandemic restricted people to their homes, making them opt for preparing meals at home.
CEO Dolph Baker’s remarks
Commenting on the quarterly update on Monday, CEO Dolph Baker said:
“While retail demand has been strong for most of this fiscal year, that trend began to change in the fourth quarter as consumers started dining out again and preparing fewer meals at home. As a result, food service demand has improved as retail demand has slowed down, with overall demand for shell eggs approaching a more normalised balance that is closer to pre-pandemic levels.”
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Wajeeh Khan
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