In a release dated July 23^rd Cal-Maine Foods Inc. (CALM) announced results for the 4^th Quarter and FY 2024 ending June 1^st 2024. This report summarizes data provided in the Company release and the concurrently filed SEC 10-Q Report.

It is noted that market conditions during Q4 2024 were favorable with an average unit revenue for Cal-Maine of $2.13 per dozen for all eggs, compared with Q4 2023 with a corresponding price of $2.20 per dozen. 

Cal-Maine represents a bellwether for the shell egg sector as the only public-quoted, pure-play egg company in the industry, supplying close to 20 percent of domestic shell egg consumption. The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

Notes: $9.8 million ‘other income,’ Q4 2024 compared to $9.7 million in Q4 FY2023:

$11.3 million patronage dividends, Q3 2024 compared to $10.2 million Q3 FY2023

$32.5 million interest income, FY2024 compared to $18.5 million FY2023

$0.3 million loss on non-controlling interest Q4 2024 compared to $0.4 million Q4 FY202.

Fassio Farms acquisition in Q2 2024: comprised 1.2 million hens, housing, packing plant and feed mill etc. for $53.7 million representing $44.80/hen

For FY 2024 Cal-Maine Foods earned $277.9 million on sales of $2,326 million with a diluted EPS of $5.69 Average Selling price for shell eggs was $1.93 per dozen.

For FY 2023 Cal-Maine Foods earned $758.0 million on sales of $3,147 million with a diluted EPS of $15.52 Average Selling price for shell eggs was $2.62 per dozen

Trailing P/E 11.3

52-Week Range in Share Price: $42.25 to $68.37 50-day Moving average $60.56

Market Close, Tuesday July 23^rd $64.83 pre-release.

Post release, after-hours, 20H00 up 1.8 percent to $66.00.

In reviewing the CALM Q4 2024 report and the SEC 10-Q submission the following values represent key data for the most recent Quarter or FY 2024. (Q4 for FY 2023 and percentage differences in parentheses):-

• Shell egg sales attained $640,789 million in Q4 2024 based on shell eggs comprising 96.1 percent of total revenue. ($661,821 million, in Q4 2023, based on 96.4 percent of revenue). (Sales value for shell eggs was down 3.2% reflecting lower average unit value).

• Dozen shell eggs sold (thousands): 285,555 (296,554; -3.7%)
• Average selling price of all shell eggs: $2.13 per dozen; ($2.20 per dozen; -3.2%).
• Average selling price of specialty eggs (excluding co-pack): $2.25 cents per dozen; ($2.50 per dozen; -10.0%).
• Average selling price of generic eggs: $2.06 cents per dozen; ($2.04 cents per dozen; +1.0%).
• Differential between specialty eggs and generic eggs: +$0.19 cents per dozen; (+$0.46 per dozen; -58.7%)
• Specialty eggs as a proportion of volume sold: 36.5%; (34.6%; +6.3%)
• Specialty eggs as a proportion of sales value: 38.5%; (39.1%; -1.5%)
• Proportion of eggs sold that were produced by Cal-Maine and their contract flocks in Q4 FY 2024 : 88.8% (92.3%; -3.8%).
• Farm feed cost: 50.4 cents per dozen, (67.1 cents per dozen, -24.9%) Includes specialty and breeder diets. Differential represents $107 million over Q4 volume.
• Egg product sales in FY 2024 attained $89 million or 3.8% of sales value at a unit price of $1.19 per lb. For FY 2023, sales attained $122 million with a unit price of $1.74 per lb.
• Cal-Maine Foods maintained a flock of 39.9 million hens on average Capacity 48 million) during FY 2024 with 11.8 million pullets (capacity 12.7 million) plus parent breeders representing less than two percent of the total flock. 

The following observations relate to the comparison of Q4 2024 with the corresponding Q4 FY2023:-

• Cal-Maine Foods was not affected by the 2022-2023 HPAI epornitic during FY 2022 or FY 2023. During Late December 2023 (Q3 FY 2024) the Chase, KS. Complex comprising 1.5 million hens and 240,000 pullets, representing 3.3% of the total flock was depopulated as a result of HPAI. On April 1^st 2024 (Q4 2024) the Farwell, TX complex was confirmed positive requiring depopulation of 1.6 million hens and 0.34 million pullets.
• Q4 of FY 2024 represented a less favorable marketing comparison to Q4 FY 2023 based on lower prices for shell eggs, as U.S. flocks were re-populated, coupled with restoration of normal consumer demand. Average shell egg price obtained by Cal-Maine was 3.2 percent lower than in Q4 FY 2023.
• Comparing FY 2024 with FY 2023 gross profit was impacted negatively by lower unit revenue for generic eggs although with some benefit from specialty eggs. The 24.9 percent lower feed cost to 50.4 cents per dozen was partly offset by 7.5 percent higher farm production costs attaining 43.0 cents per dozen,
• In a market characterized by low unit prices for generics, the relative contribution of specialty eggs is more important to net earnings in contrast to an up-market for conventional eggs. Normality was restored in FY 2024 with generic eggs at a lower unit price and margin compared to specialty eggs.

In commenting on Q4 and FY 2024 results Sherman Miller, president and CEO stated, “We are pleased to report a solid performance for the fourth quarter amidst a challenging period for Cal-Maine Foods and our industry. We are extremely proud of our managers and employees who continued to manage our operations in a dynamic environment affected by recent outbreaks of highly pathogenic avian influenza (“HPAI”). Despite the interruptions, we continued to meet the demands of our valued customers.

“Throughout the year, we continued to execute our growth strategy and deliver a favorable product mix in line with customer demand. Our operations ran well as we remained focused on our objective of operational excellence.

In reference to acquisitions Miller stated “We also completed two asset acquisitions in fiscal 2024 and completed one subsequent to the end of the fiscal year, each of which complements our organic growth initiatives. We are excited about the additions of the assets of Fassio Egg Farms, Inc., located in Erda, Utah, and the former broiler processing plant, hatchery and feed mill in Dexter, Missouri, previously operated by Tyson Foods. We have commenced work on the acquired Dexter facilities to repurpose the assets for use in shell egg production and processing. We are partnering with local farmers, working with local contractors and businesses and making significant investments in the Dexter area to renovate and improve the facilities, with future plans for expanded shell egg and value-added egg product opportunities. Following the end of the fiscal year, we acquired substantially all the assets of ISE America, Inc. and certain of its affiliates (“ISE”). We expect that the acquisition of these assets from ISE will enable us to significantly enhance our market reach in the Northeast and Mid-Atlantic states.”

The 10-Q Report documented approved capital investment of $233 million for cage-free conversions, $16 million additional items for FY 2024 through FY 2027 with a $10.9 million provision for improvements to the Dexter, MO. broiler complex acquired from Tyson Foods. Of this total $194 million has been committed with $56 million to be expended.