Cal-Maine Foods, the largest egg producer and distributor in the U.S., announced a significant increase in its quarterly sales. The rise in egg prices and a reduction in production costs boosted the company’s sales by more than 70% compared to the same period last year.
For the first quarter of fiscal 2025, Cal-Maine Foods reported sales soaring from $489 million last year to $786 million, surpassing the expected $705 million. The company attributed this growth to higher net average selling prices and increased egg volumes.
The ongoing avian flu outbreak has led to a reduction in the U.S. egg supply, causing egg prices to become a prominent factor in inflation. The net average selling price for a dozen eggs rose to $2.392 from $1.589 a year ago. Additionally, the decline in production costs, primarily due to lower feed ingredient prices, also positively impacted the company’s financial performance.
Cal-Maine Foods, which operates primarily in the southeastern United States, stated that Hurricane Helen’s severe impact on the region is unlikely to significantly affect its operations and business.
In the first quarter, Cal-Maine Foods achieved a net income of $150 million, or $3.06 per share, compared to $9.26 million, or $0.02 per share, in the same quarter last year. Year-to-date, Cal-Maine’s stock price has climbed approximately 34%, significantly outperforming the S&P 500 index's gain of around 20%.
