Sanderson Farms Results reported
Net sales for the first six months of fiscal 2017 were $1,490.4 mill. compared with $1,297.3 mill. for the same period of fiscal 2016. Net income for the first half of the year totaled $90.1 mill., or $3.96 per share, compared with net income of $58.3 mill., or $2.58 per share, for the first six months of last year.
"The results for our second quarter of fiscal 2017 reflect benign feed costs, continued favorable demand for poultry products from retail grocery store customers, higher volume, and an improving export environment," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "Our sales price per pound increased during the first half of this fiscal year compared with last year as market prices improved steadily through the second fiscal quarter. Poultry export market fundamentals improved, market demand for wings improved counter seasonally, and market prices for boneless breast meat improved significantly during the second half of April and have continued to move higher into May.
According to Sanderson, overall market prices for poultry products were higher during the second quarter compared with the same period last year. Market prices for chicken products sold to retail grocery store customers remained relatively strong during the quarter and continue to reflect good demand. Compared with the second fiscal quarter of 2016, boneless breast meat market prices were approximately 9.1% higher, the average market price for bulk leg quarters increased approximately 17.2%, and jumbo wing market prices were higher by 5.1%. The Company's average feed costs per pound of poultry products processed were essentially flat when compared with the second quarter of fiscal 2016, while prices paid for corn and soybean meal, the Company's primary feed ingredients, decreased 0.4% and increased 15.0%, respectively, compared with the second quarter of fiscal 2016. The Company's feed costs per pound processed were affected by changes in feed formulation and improved broiler performance.