Dive Brief:
- Sanderson Farms, Inc. Q2 earnings included a 40% increase in profits, a total of $71.2 million, or $3.13 per share, over last year's $51 million, or $2.21 million per share. However, that figure did not meet analysts' predictions.
- Revenue rose 7.8% to $716.6 million, but that number also missed analysts' estimates.
- Sanderson's chairman and CEO, Joe F. Sanderson, Jr., attributed the Q2 results to "lower grain costs and continued favorable demand for poultry products," he said in a statement.
Dive Insight:
Sanderson did not comment on the bird flu in its report. The company has seen a dent in its exports, which comprise about 10% of total revenue. This is due to bird flu fears as well as the Russian ban on U.S. food imports and China's U.S. poultry ban.
Other companies, however, like Hormel's Jennie-O Turkey Store brand and Post's Michael Foods Group, have already reported contamination issues with their livestock and egg supplies.
Last week, Sanderson Farms announced that it would not follow suit as other meat companies cut back on antibiotics usage for animals. Sanderson's CEO said the moves are based on overblown assumptions and may be little more than a marketing gimmick.