Cal-Maine Foods Inc.

07/22/2025 | Press release | Distributed by Public on 07/22/2025 14:12

Business/Financial Results (Form 8-K)

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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS FINANCIAL AND OPERATIONAL RESULTS
FOR FOURTH QUARTER AND FISCAL 2025
RIDGELAND, Miss. (July 22, 2025) - Cal-Maine Foods, Inc. (NASDAQ: CALM) ("Cal-Maine Foods"or the
"Company"), today reportedfinancial and operationalresults for thefourth quarter andfiscal year ended
May 31, 2025.
Fourth Quarter and Fiscal 2025 Financial, Operational and Business Highlights
Quarterly net sales of $1.1 billion and net income of $342.5 million, or $7.04 per diluted share
Fiscal year net sales of $4.3 billion and net income of $1.2 billion, or $24.95 per diluted share
Record totalspecialty dozenssold inthe quarterdue tocontinued strongconsumer demandand
the added production from ISE America, Inc.which was acquired in the first quarterof fiscal 2025
Significant progress onproactive steps toadd production capacityand help mitigatethe egg supply
shortage across the country, including:
o
An18%increaseintheaveragenumberoflayerhensduringthefourthquarteroffiscal
2025, comparedto theprior-year quarter,reflecting re-startof prior-yearfacility outages
and both organic and inorganic expansion
o
A 48% increase in the Company's breeder flocks as of theend of the fourth quarter of fiscal
2025 compared to the end of the prior-year quarter
o
A 56%increase intotal chickshatched duringthe fourthquarter offiscal 2025compared
to the prior-year quarter
o
Continuedprogressonongoingorganicexpansionprojectsthatareexpectedtoadd
approximately 1.1million cage-freelayer hensand 250,000pullets andcontract production
of 1.2 million free range layer hens
o
Added productionsupportthroughtheintegrationofrecently acquiredassets, including
the processing facilities from ISE America, Inc. and feed mills from Deal-Rite Feeds, Inc.
Announced theacquisition ofEcho LakeFoods, aproducer andmarketer ofquality preparedfoods,
with the transactionclosing subsequent tothe end ofthe fourth quarterof fiscal 2025on June 2,
2025
Declaredacashdividendofapproximately$114.2million,orapproximately$2.35pershare,
pursuant to the Company's established dividend policy
Ceased tobe a"controlled company"upon conversionof allof theCompany's ClassA Common
Stock into Common Stock
Completed an underwritten public offering of Common Stock by the Company's founder's family
Purchasedapproximately$50millionofitsCommonStock,or551,876shares,pursuanttothe
Company's$500millionsharerepurchaseprogram,leavingapproximately$450million
remaining under the share repurchase program
Commenting on the fourthquarter of fiscal2025 results, Sherman Miller,president and chief executive
officer of Cal-Maine Foods, stated, "Our results for the fourth quarter of fiscal 2025 marked a strong finish
to a challenging, but successful year oftransformation for Cal-Maine Foods. We continued toadvance our
growth strategy in a dynamic market environment, maintained a strong focus on safely, efficiently and
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2025 Results
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July 22, 2025
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sustainablymanagingouroperations,addedproductioncapacitytomeetcustomerdemandandstayed
disciplined in our investments.
"Following the endof the fourthquarter, we closedthe acquisition ofEcho Lake Foods,which aligns
withourstrategytodiversifyourproductportfoliobyexpandingourpreparedfoodsofferings.Weare
excitedaboutthenewmarketopportunitiesthatEchoLakeFoodsprovidesforCal-MaineFoods,our
customersandourshareholders,andwelookforwardtocontinuingtoworktogetheronasuccessful
integration," added Miller.
Key Fourth Quarter and Fiscal 2025 Financial Drivers
Net salesfor thefourth quarterof fiscal2025 were$1.1 billioncompared with$640.8 millionfor
the same period last year. Net income attributable to Cal-Maine Foods for the fourth quarter of fiscal 2025
was $342.5 million, or$7.04 per diluted share,compared with $113.2 million,or $2.32 per dilutedshare,
for thefourth quarterof fiscal2024. Thehigher netsales wereprimarily drivenby anincrease inthe net
average selling price of shelleggs and also reflected highervolumes sold. The higher marketprices were a
direct result ofthe reduced supplyof shell eggsacross the industrydue to outbreaksof highly pathogenic
avianinfluenza("HPAI")duringaperiodofhighdemandforeggsandeggproductsaroundtheEaster
holiday.
Net salesfor fiscal2025 were$4.3 billioncompared with$2.3 billionfor fiscal2024. Netincome
attributable to Cal-Maine Foodsfor fiscal 2025 was $1.2billion, or $24.95 per dilutedshare, compared to
$277.9 million, or $5.69per diluted share. Theincrease in sales revenuewas primarily due toan increase
in the net average selling price of eggs as well as an increase in the dozenssold reflecting both organic and
inorganic expansion.
For the fourth quarter of fiscal 2025,the net average selling price perdozen was $3.305 compared
with $2.133 for the fourth quarter offiscal 2024. The net average selling pricegenerally reflects a blend of
highermarket-basedpricesformostconventionaleggswithlowernegotiated-pricearrangementsfor
specialty eggs, based on long-standing pricing frameworks withcustomers that the Company has honored
throughout the various cycles that characterize the egg industry.
Overall demand for shell eggswas strong during the fourthfiscal quarter, which included thebusy
Easterholidayseason.TheCompanysold311.4milliondozenshelleggs,representinga9.0%increase,
including the contribution from acquisitions, comparedwith 285.6 million dozens for thefourth quarter of
fiscal 2024. Salesof conventionaleggs totaled 189.6million dozens,compared with180.5 milliondozens
for theprior-year period,an increaseof 5.0%.Specialty eggvolumes alsoincreased by16.0% toa record
121.8 million dozens sold for the fourth quarter of fiscal 2025 compared with 105.0 million dozens sold for
the prior-year period.
Fourth quarter farm productioncosts per dozen remained relativelyflat compared to theprior-year
period asthe Companybenefited frommore favorablecommodity pricingfor keyfeed ingredientsthat were
offset with higher facility costs. For the fourth quarter of fiscal 2025, feed costs per dozen were down 2.2%
compared withthefourthquarter offiscal 2024.Costs foroutside eggpurchasesincreasedsignificantly
quarter-over-quarter, primarily due to higher shell egg prices.
MaxBowman,vicepresidentandchieffinancialofficerofCal-MaineFoods,commented,"Our
financialresultsreflectCal-MaineFoods'abilitytorespondtothechallengesofadynamicmarket.Our
strategic focus on both organicgrowth and adding productioncapacity through acquisitions allowedus to
meet customer demand withfavorable results. As always,we remain focused onoptimizing the aspects of
ourbusinessinwhichwehaveoperatingcontrolandmanagingefficientlyandsafelyregardlessofthe
market environment."
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2025 Results
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July 22, 2025
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Additionaldetailsonthefourthquarterandfiscal2025financialdriversareshowninthechart
below.
Fourth Quarter and Fiscal 2025 Key Statistics
13 Weeks Ended
52 Weeks Ended
May 31, 2025
June 1, 2024
May 31, 2025
June 1, 2024
Dozen Eggs Sold (000)
311,393
285,555
1,282,611
1,147,633
Conventional Dozen Eggs Sold (000)
189,563
180,513
812,396
746,687
Specialty Dozen Eggs Sold (000)
121,830
105,042
470,215
400,946
Dozen Eggs Produced (000)
287,993
243,851
1,135,955
1,018,835
% Specialty Sales (dozen)
39.1
%
36.8
%
36.7
%
34.9
%
% Specialty Sales (dollars)
30.3
%
38.9
%
29.5
%
41.7
%
Net Average Selling Price (per dozen)
$
3.305
$
2.133
$
3.134
$
1.932
Net Average Selling Price of Conventional
Eggs (per dozen)
$
3.784
$
2.062
$
3.490
$
1.730
Net Average Selling Price of Specialty Eggs
(per dozen)
$
2.559
$
2.254
$
2.519
$
2.309
Feed Cost (per dozen)
$
0.493
$
0.504
$
0.490
$
0.550
HPAI Comments
OutbreaksofHPAIhavecontinuedtooccurinU.S.poultryflocks.Incalendaryear2024,40.2
million commerciallayer hensand pulletswere depopulateddue toHPAI, andin calendaryear 2025,an
additional 39.0million commerciallayer hensand pulletshave beendepopulated throughMay. HPAIis
currently widespread in thewild bird population worldwideand no farm isimmune from HPAI. Theextent
ofpossiblefutureoutbreaksincommerciallayinghens,withheightenedriskduringmigrationseasons,
cannot be predicted.The widely reportedspread of HPAIin dairy cattleincreases risks toCal-Maine Foods'
operationsandthoseofothereggproducers.AccordingtotheU.S.CentersforDiseaseControland
Prevention,the humanhealth riskto theU.S. publicfromtheHPAI virusis consideredto below. Also,
accordingtotheUSDA,HPAIcannotbetransmittedthroughsafelyhandledandproperlycookedeggs.
There is noknown risk relatedto HPAI associatedwith eggs thatare currently inthe market andno eggs
have been recalled due to HPAI.
Dividend Payment and Share Repurchases
For thefourth quarterof fiscal2025, Cal-MaineFoods willpay acash dividendof approximately
$2.35 per share to holders of its Common Stock. The dividend is payable on August 19, 2025, to holders of
record onAugust4, 2025.The finalamount paidper sharewill bebased onthe numberof outstanding
shares on the record date.
PursuanttoCal-MaineFoods'variabledividendpolicy,foreachquarterinwhichtheCompany
reports net income, the Company pays a cash dividend to shareholdersin an amount equal to one-third of
suchquarterlynetincome.FollowingaquarterinwhichtheCompanydoesnotreportnetincome,the
Company willnot paya dividendwith respectto that quarteror fora subsequentprofitable quarteruntil
the Companyis profitableon acumulativebasis computedfrom thedateof themost recentquarter for
which a dividend was paid.
On February 25,2025, theCompany announced thatits Board ofDirectors approveda new share
repurchaseprogramthatauthorizestheCompany,inmanagement'sdiscretion,torepurchasesharesof
Cal-MaineFoods'CommonStockfromtimetotimeuptoanaggregatepurchasepriceof$500 million.
During the fourthquarter fiscal 2025,the Company repurchasedapproximately $50 millionof its Common
Stock,or551,876shares,fromtheCompany'sfounder'sfamilymembers,leavingapproximately$450
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2025 Results
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July 22, 2025
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millionremainingunderthesharerepurchaseprogram.TheCompanyexpectstoopportunistically
repurchase shares from time to time in the open market, subject to market conditions and other factors.
Looking Ahead
Miller added,"Cal-Maine Foodshas continuedto beresilient througha periodof unprecedented
challenges for ourindustry. We areextremely proud ofour teams acrossour operations whohave remained
focused on managing ouroperations in a responsiblemanner while navigating theongoing risks associated
with HPAI.Our consistentability tomeet thedemands ofour customersis atestament toour abilityto
execute ourstrategy regardlessof marketconditions.As aleader inourindustry, weare mindfulof our
critical role inproviding an affordable,high-value proteinoption to supportthe nation's foodsupply. We
believe wehave aproven operatingmodel andthe operationalscale thatallows usto continueto expand
ourshelleggproductioncapacityandproductmix,bothorganicallyandthroughstrategicacquisitions.
With the addition ofEcho Lake Foods, wehave a significantopportunity to continue topursue additional
growth inour preparedfoods portfolio,which weexpect willdiversify ourproduct offering,leverage our
existingdistributionchannelsandexpandourreachinretail,quickservicerestaurants,andotherfood
service customers.
"Looking ahead tofiscal 2026, webelieve Cal-Maine Foodsis well-positioned tocontinue delivering
onourgrowthandreturnsstrategywithourleadingproductioncapability,fullyintegratedoperations,
expanding productportfolio, broaddistribution reachand commitmentto financialdiscipline. Aboveall,
we remaincommitted toCal-Maine Foods'unwavering missionto bethe mostsustainable producerand
reliable supplier ofconsistent, high qualityfresh shell eggs,egg products andprepared foods inthe country.
We lookforward tothe yearahead forCal-Maine Foodsas wepursue theopportunities beforeus anddeliver
value to all our stakeholders."
About Cal-Maine Foods
Cal-MaineFoods,Inc.isprimarilyengagedintheproduction,packaging,marketingand
distributionoffreshshelleggs,includingconventional,cage-free,organic,brown,free-range,pasture-
raisedandnutritionallyenhancedeggs,aswellasavarietyofeggproductsandpreparedfoods.The
Company, which isheadquartered in Ridgeland,Mississippi, is thelargest producer anddistributor of fresh
shell eggs in the nation and sells most of its shell eggs throughout the majority of the United States.
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