On July 23, 2024, Cal-Maine Foods Inc (CALM, Financial) released its 8-K filing reporting robust financial results for the fourth quarter and fiscal year 2024. The company, the largest producer and distributor of fresh shell eggs in the United States, showcased resilience and operational excellence despite facing industry-wide challenges.
Company Overview
Cal-Maine Foods Inc produces and sells shell eggs, primarily in the United States. Its product portfolio includes nutritionally enhanced, cage-free, organic, and brown eggs. The company markets its shell eggs to a diverse group of customers, including grocery-store chains, club stores, and food service distributors. The company's brands include Egg-Land's, Land O' Lakes, Farmhouse, and 4-Grain. Cal-Maine Foods operates in one reportable segment: the production, grading, packaging, marketing, and distribution of shell eggs.
Performance Highlights
For the fourth quarter of fiscal 2024, Cal-Maine Foods reported net sales of $640.8 million, surpassing the analyst estimate of $608.66 million. The company also reported a quarterly net income of $113.2 million, or $2.32 per diluted share, significantly exceeding the estimated earnings per share of $1.31. For the full fiscal year 2024, net sales reached $2.3 billion, with a net income of $277.9 million, or $5.69 per diluted share, outperforming the annual earnings estimate of $4.67 per share.
Financial Achievements
Cal-Maine Foods' financial achievements are noteworthy, particularly in the context of the Consumer Packaged Goods industry. The company's ability to maintain strong sales and profitability amidst fluctuating market conditions and external challenges underscores its robust operational framework and strategic market positioning.
Income Statement and Key Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $640.8M | $688.7M | $2.3B | $3.1B |
| Net Income | $113.2M | $110.9M | $277.9M | $758.0M |
| EPS (Diluted) | $2.32 | $2.27 | $5.69 | $15.52 |
Operational Insights
Despite a challenging environment marked by outbreaks of highly pathogenic avian influenza (HPAI), Cal-Maine Foods managed to sustain its operations effectively. The company reported a decrease in farm production costs per dozen by 14.3% for the fourth quarter and 8.3% for the fiscal year, primarily due to favorable commodity pricing for key feed ingredients.
"We are pleased to report a solid performance for the fourth quarter amidst a challenging period for Cal-Maine Foods and our industry," stated Sherman Miller, President and CEO of Cal-Maine Foods.
Sales Performance
Cal-Maine Foods sold 285.6 million dozen shell eggs in Q4 2024, compared to 296.6 million dozen in Q4 2023. The decline in sales volume was attributed to the shorter reporting period of 13 weeks in Q4 2024 versus 14 weeks in the prior-year period. However, specialty egg volumes increased by 2.5%, reflecting a growing consumer preference for these products.
Balance Sheet and Cash Flow
| Metric | June 1, 2024 | June 3, 2023 |
|---|---|---|
| Cash and Short-term Investments | $812.4M | $647.9M |
| Total Assets | $2.18B | $1.95B |
| Total Liabilities | $387.7M | $344.9M |
| Stockholders' Equity | $1.80B | $1.61B |
Dividend Announcement
Cal-Maine Foods declared a cash dividend of $0.77 per share for the fourth quarter of fiscal 2024, payable on August 20, 2024, to shareholders of record on August 5, 2024. This dividend is in line with the company's established variable dividend policy.
Conclusion
Cal-Maine Foods Inc (CALM, Financial) has demonstrated strong financial performance and resilience in the face of industry challenges. The company's strategic focus on operational excellence and market expansion positions it well for continued growth. Investors and stakeholders will be keenly watching how Cal-Maine Foods navigates the upcoming fiscal year, leveraging its robust financial health and market leadership.
Explore the complete 8-K earnings release (here) from Cal-Maine Foods Inc for further details.
