As we continue to see the slow-but-steady rebound of the foodservice sector, in addition to the rising trend of preparing meals at home, those who provide high-quality protein products are surely seeing a boost of sales. One of those suppliers is Sanderson Farms, which recently reported its financial results for the third fiscal quarter, revealing company growth of $396.3 million as net sales eclipsed $1,352.8 million.
“Our financial results for the third quarter of fiscal 2021 reflect significantly improved demand and prices for products sold to foodservice customers, continued strong demand for products sold to retail grocery store customers, reduced volumes due to planned egg set reductions that we implemented during the early stages of the COVID-19 pandemic, and higher costs of feed grains,” stated Joe F. Sanderson, Jr., Chairman and Chief Executive Officer. “Our results also reflect superior execution in all areas of our business, including live production, processing, and sales. We benefitted from improved market conditions for the products we sell to foodservice customers due to the phased reopening of more foodservice establishments across the nation. While foodservice customer demand has improved with more people dining out, consumers also continue to prepare meals at home. As a result, demand for the products we sell to retail grocery store customers remained strong throughout the quarter.”
In its third-quarter fiscal results, Sanderson Farms revealed a significant increase in income, with its net income reaching $271.2 million for the first nine months of fiscal 2021, as compared to net income of $0.35 million in the same period last year. The report also highlighted overall realized prices for chicken products sold to retail grocery store customers remained strong during the third quarter, and volumes reflected the strong demand.
“We produced approximately 1.21 billion pounds during the third quarter, which is 53.2 million, or 4.2 percent, fewer pounds than we would have produced at full production. This reduction in volume is attributable to planned egg set reductions implemented during the early stages of the COVID-19 pandemic to compensate for the decrease in demand from our foodservice customers,” Sanderson added. “We estimate our total production during the fourth quarter of fiscal 2021 will be lower by 3.1 percent compared to the fourth quarter of fiscal 2020. If that projection holds true, our total fiscal 2021 production will be 0.6 percent lower than our fiscal 2020 production.”
To read the report in its entirety, click here.
We here at Deli Market News will keep an eye out as the meat sector continues to grow and expand, so leave a tab open for us!