Cal-Maine Foods Inc. reported better than expected results for the third quarter ending March 3, 2018.
The US egg producer saw a 42.4% increase in net sales to $435.8mn as stronger demand boosted egg prices.
The Mississippi-based firm said that net income rose $96.3mn, or $1.99 a share, from $4.1mn or 9 cents a share, in the same period last year.
The egg seller said that it benefitted from the recent TCJA tax reform legislation and a continued increase in egg prices.
“We are pleased to report very strong financial and operating results for the third quarter of fiscal 2018, as we capitalized on improved market conditions compared with the third quarter last year,” said Dolph Baker, chairman and chief executive officer of Cal-Maine Foods, Inc.
“Our sales were up 42.2 percent from a year ago, reflecting strong consumer demand trends, continued grocery store promotions for shell eggs, and more moderate production growth. Together, these factors have supported higher market prices.
“We continued to execute our growth strategy in this favorable market environment, resulting in a significant improvement in profitability compared with the prior-year period,” he added.
Baker also said that the firm’s speciality egg business reans the focus of its growth and that it is tapping into growing consumer demand for cage-free eggs.