Business
Cal-Maine Foods Reports Financial and Operational Results for Third Quarter Fiscal 2025 and Announces Definitive Agreement to Acquire Echo Lake Foods, Inc.
RIDGELAND, Miss.--(BUSINESS WIRE)-- Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or the “Company”), today reported financial and operational
About this update from Cal-maine Foods, Inc.
[{"type":"text","content":" RIDGELAND, Miss.--(BUSINESS WIRE)--\nCal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or the “Company”), today reported financial and operational results for the third quarter of fiscal 2025 (thirteen weeks) ended March 1, 2025. Subsequent to the end of the fiscal quarter, the Company also announced it entered into a definitive agreement to acquire Echo Lake Foods, Inc. (“Echo Lake Foods”).\n\nThird Quarter Fiscal 2025 Financial, Operational and Business Highlights\n\n\nQuarterly net sales of $1.4 billion and net income of $508.5 million, or $10.38 per diluted share\n\n\nStrong consumer demand during the quarter led to record total dozens sold, as the Company honored long-standing pricing frameworks with valued customers\n\n\nSignificant progress on proactive steps to help mitigate the tight egg supply situation across the country, resulting in:\n\n\nA 14% increase in the average number of layer hens during the quarter compared to the prior-year quarter, reflecting both organic and inorganic expansion\n\n\nA 33% increase in the Company’s breeder flocks as of the end of the third quarter of fiscal 2025 compared to the end of the prior-year quarter\n\n\nA 24% increase in total chicks hatched during the third quarter of fiscal 2025 compared to the prior-year quarter\n\n\nExpected completion in calendar 2025 of approximately $60 million in ongoing expansion projects within the Company’s current operations that are expected to add approximately 1.1 million cage-free layer hens and 250,000 pullets\n\n\nRecovery from highly pathogenic avian influenza (HPAI)-related shutdowns of the Company’s Kansas and Texas facilities\n\n\nSuccessful conversion of a new egg processing facility and hatchery in Dexter, Missouri, projected to add additional capacity of 1.2 million free range hens by calendar year end\n\n\nRapid integration and expected continued production ramp up from recently acquired assets, including the processing facilities from ISE America, Inc. and feed mills from Deal-Rite Feeds, Inc.\n\n\nContinued investments in best-in-class biosecurity technology, equipment, procedures, and training, with over $70 million spent since 2015 to address ongoing HPAI threats\n\n\n\n\nApproved a $500 million share repurchase program to expand the options for uses of capital under the Company’s disciplined capital allocation strategy\n\n\nD...