Cal-Maine reported diluted earnings per share of $1.24 in the fourth quarter, which reflected a growth from a net loss 41 cents recorded in the prior-year quarter. Revenue of $453.3 million inched up 61.6% on a year-over-year basis.
For full fiscal 2020, the company reported net income of $18.4 million, or 38 cents per diluted share, while revenue for the period stood at $1.35 billion.
Reflecting on the 2020 fiscal year and the latest quarter, Chairman and CEO Dolph Baker commented:
“Fiscal 2020 demonstrated Cal-Maine Foods’ resiliency in the face of challenging business conditions and volatile egg prices. After three fiscal quarters characterized by an oversupply of eggs and depressed market prices, demand for eggs increased and market prices rose 62.4 percent during our fourth fiscal quarter over the average price for the first three quarters, as consumers purchased more eggs for preparing meals at home in response to the COVID-19 pandemic.”
For the quarter, the company sold 282.4 million dozen eggs, which was more than the prior-year quarter. Additionally, the net average selling price was up from the prior-year period at $1.575 per dozen.
"For the fourth quarter, sales of specialty eggs were $133.3 million, accounting for 29.9 percent of our egg sales revenue, compared with $119.9 million, or 44.1 percent of egg sales revenue, in the fourth quarter of fiscal 2019,” Baker said. “The increase in specialty egg revenue in the fourth quarter 2020 resulted from a 10.4 percent increase in specialty dozens sold in the fourth quarter of fiscal 2020 over the fourth quarter of fiscal 2019, as well as slight increase in specialty egg prices.”
Baker said that the company would continue to implement its “growth strategy” in fiscal 2021 in spite of challenges posed by the coronavirus pandemic. The growth strategy comprises of providing a favorable product mix, investing in operations and discovering acquisitions and other growth opportunities that would augment its production. According to Baker:
“We have a strong balance sheet with the financial flexibility to support our growth strategy, and we look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2021.”
Due to the supply chain disruptions caused by the coronavirus pandemic as well as the uncertainties associated with trade agreements and tariff disputes, price volatility is expected in fiscal 2021.
Disclosure: I do not hold any positions in the stocks mentioned.
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