Cagle's reports loss on higher sales for fiscal 2009
June 15, 2009
by Bryan Salvage
ATLANTA - Cagle's Inc. suffered a net loss of $11.5 million or $2.48 per diluted share for fiscal year 2009, compared with a net loss of $0.77 million or $0.17 per diluted share for fiscal 2008. Operating income for fiscal 2009 was a loss of $15.7 million compared to operating income of $0.14 million for fiscal 2008.
Fiscal 2009 revenues, however, were $292.6 million, a 3.1% increase compared to fiscal 2008 with poultry prices increasing $0.024 per lb. sold. Quoted market prices for the year 2009 versus 2008 reflect a reduction in boneless breasts of - 13.6%; breast tenders, -7.2%; wings, -9.2%; and leg quarters, -3.4%.
Fiscal 2009 cost of sales increased 9.2% as compared with 2008, from $268.5 million to $293.2 million. Feed ingredient cost per ton for broilers processed in 2009 increased 23.5% or $20.3 million as compared to fiscal 2008. Feed cost represented approximately 36% of total cost of sales in 2009.
The company’s fourth-quarter operating income approached the breakeven mark as revenue per lb. improved by more than 3% and cost of sales fell 1.6%.
"As the company begins fiscal 2010, demand for the cost effective protein offered by our products is improving and our markets are reacting favorably which we anticipate will return our company to positive margins in the first quarter," the company said in a statement.