Sanderson Farms announced its fourth quarter 2017 financial results, reporting significant gains in net sales and closing a year of prodigious growth for the company—despite challenges to the poultry industry.
"The fourth quarter marked the end of another record year for Sanderson Farms," said Joe F. Sanderson, Jr., Chairman and Chief Executive Officer, in a press release. "Market conditions weakened during our fourth fiscal quarter of 2017, as market prices declined seasonally after Labor Day. The seasonal decrease in demand was exacerbated by hurricane disruptions and higher than expected chicken production caused by higher than expected live weights. Despite this weakness, we performed well during the quarter.”
Highlights from the forth quarter included net sales for the fourth quarter of $919.9 million, compared with $790.8 million for the same period a year ago. The company did, however, report a decrease in net income, year-over-year, with Sanderson Farms earning $72.9 million, or $3.20 per share in net income this quarter compared with net income of $76.0 million, or $3.36 per share, for the fourth quarter of fiscal 2016.
Sanderson was optimistic in his assessment of the quarter, however, sighting the continued success of the company throughout its 2017 fiscal year.
"For the fiscal year, we reported record annual sales, with improved overall poultry market prices compared with fiscal 2016, and higher volume of poultry products sold by 13.2 percent. Grain prices were slightly higher during fiscal 2017 compared with prices paid in fiscal 2016; however, feed costs in processed flocks were lower per pound on improved live bird performance. For fiscal 2017, we sold 4.22 billion pounds of dressed poultry, another record, compared with 3.73 billion pounds in fiscal 2016," Sanderson said.
For more on Sanderson Farms’ fourth quarter and fiscal year ending October 31, 2017, including a brief assessment of fourth quarter pricing and the ways in which it affected profits, click here.
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