Cal-Maine Foods(US:CALM)2025-01-07 21:11Financial Performance - For the second quarter of fiscal 2025, the company recorded a gross profit of $356.0 million, significantly up from $91.1 million in the same period of fiscal 2024, driven by increased net average selling prices and total dozens sold[101]. - Total net sales for the second quarter of fiscal 2025 were $954.7 million, an increase of 82.5% compared to $523.2 million for the same period in fiscal 2024[107]. - The company reported a net income attributable to Cal-Maine Foods, Inc. of 23.0% for the second quarter of fiscal 2025, compared to 3.3% in the prior year[106]. - Operating income for Q2 fiscal 2025 was $278.1 million, a significant increase from $14.2 million in Q2 fiscal 2024[134]. - Net income attributable to Cal-Maine Foods, Inc. for Q2 fiscal 2025 was $219.1 million, or $4.49 per share, compared to $17.0 million, or $0.35 per share, in Q2 fiscal 2024[142]. - Cash flows from operating activities for the twenty-six weeks ended November 30, 2024, were $240.2 million, up from $73.7 million in the same period of fiscal 2024[145]. Sales and Pricing - The net average selling price per dozen for the second quarter of fiscal 2025 was $2.740, compared to $1.730 in the prior-year period, with conventional egg prices at $2.943 and specialty egg prices at $2.387[102]. - Shell egg sales accounted for 94.6% of total net sales in the second quarter of fiscal 2025, with conventional egg sales increasing by $336.3 million, or 119.8%[112]. - The average selling price per dozen for conventional eggs rose to $2.943, up from $1.458 in the prior year, reflecting a 101.9% increase[111]. - Specialty egg sales increased by $69.1 million, or 31.7%, in the second quarter of fiscal 2025, attributed to a 25.6% increase in volume sold[112]. - Egg products sales increased by $20.6 million, or 103.1%, in the second quarter of fiscal 2025, driven by a 63.5% increase in liquid eggs sold[116]. Production and Capacity - The company’s dozens sold increased by 14.5% in the second quarter of fiscal 2025 compared to the same quarter in fiscal 2024, supported by robust demand and increased production capacity from recent acquisitions[103]. - The company is focused on expanding cage-free production capacity to meet evolving customer needs and regulatory requirements, with significant capital investments made in recent years[92]. - The company acquired ISE America, Inc. in the first quarter of fiscal 2025, adding approximately 4.7 million laying hens, including 1.0 million cage-free, enhancing market reach in the Northeast and Mid-Atlantic states[93]. - New capital projects added since the end of Q1 2025 include five new cage-free layer houses and two pullet houses, expected to increase production capacity by approximately 1.1 million cage-free layer hens and 250,000 pullets by late summer 2025[152]. - The processing plant and hatchery acquired in Q4 2024 is expected to be operational in the next fiscal quarter, contributing approximately 1.2 million additional free-range hens by fall 2025[153]. Costs and Expenses - Total cost of sales rose by 38.5% to $598.6 million in the second quarter of fiscal 2025, compared to $432.1 million in the same period of fiscal 2024[118]. - Farm production costs per dozen produced decreased by 8.5% to $0.901, primarily due to a 12.8% reduction in feed costs[118]. - The average cost per dozen of outside egg purchases increased by 58.6% in Q2 fiscal 2025 compared to Q2 fiscal 2024, with dozens purchased increasing by 80.3%[123]. - Processing, packaging, and warehouse costs increased by 16.6% in Q2 fiscal 2025 compared to Q2 fiscal 2024, driven by a 9.7% increase in the volume of processed dozens[123]. - The company experienced a 176.4% increase in egg purchases and other cost of sales, totaling $198.0 million in the second quarter of fiscal 2025[118]. Investments and Capital Projects - The company completed a strategic investment in Crepini LLC, contributing approximately $6.75 million for a 51% interest in a new egg products and prepared foods venture[95]. - The company has approved capital projects totaling approximately $311.1 million, with $211.8 million spent as of November 30, 2024, leaving $99.3 million remaining[152]. - The company is investing $15 million to expand its egg products processing facility in Blackshear, Georgia, to add extended shelf-life liquid egg products[152]. - Current cash balances, investments, projected cash flows from operations, and available borrowings are deemed sufficient to fund capital expenditure needs for at least the next 12 months[156]. Market Conditions - In fiscal 2024, 38.4 million commercial layer hens were depopulated due to HPAI, impacting supply and contributing to elevated egg prices[98]. - The daily average price for the Urner Barry southeast large index increased by 102.1% in the second quarter of fiscal 2025 compared to the prior year, reflecting supply constraints due to HPAI outbreaks[102]. - The average CBOT daily market price for corn was $4.17 per bushel and $311 per ton for soybean meal in Q2 fiscal 2025, representing decreases of 13.0% and 25.3% respectively compared to Q2 fiscal 2024[120].