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CAL-MAINE FOODS INC

For the period ended Nov 30, 2024. Filed Jan 7, 2025.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Nov 30, 2024 · Filed Jan 7, 2025

CALM$68.83+6.5%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Item 7. “Management’s

Discussion and

Analysis of

Financial Condition

and

Results of Operations – HPAI.”

EXECUTIVE OVERVIEW

For the

and first

two quarters

2025, we

recorded a

gross profit

of $356.0

$603.3 million,

respectively,

compared to $91.1

million and $136.6

million, respectively,

for the same

periods of fiscal

2024, primarily driven

by an

the net

average selling

price of

shell eggs,

primarily conventional

egg prices,

as well

as an

total

dozens

sold,

dozens

sold.

Our

results

were

also

by

lower

feed

costs

and

our

recent

acquisitions discussed above, partially offset by an increase in the volume and price of outside egg purchases.

Our net

average selling price

per dozen for

the second quarter

of fiscal 2025

was $2.740 compared

to $1.730 in

the prior-year

period. Conventional egg

prices per dozen

were $2.943

compared to $1.458

for the prior-year

period, and specialty

egg prices

per

dozen

were

$2.387

to

$2.277

for

the

period.

Egg

prices

in

the

second

quarter

of

fiscal

were

elevated compared to the prior-year

period primarily due to the resurgence

of HPAI

outbreaks, which decreased supply,

among

other

factors.

According

to

the USDA,

the

monthly average

size of

the

layer hen

flock

from

September through

(which most closely aligns with our second fiscal quarter) 2024 was approximately 310.7 million hens, which was a decrease of

9.7 million layers, or 3.0%, compared to the same period in the prior year. The daily average price for the Urner Barry southeast

large

index

for

the

second

quarter

of

fiscal

102.1%

from

the

comparable

period

in

the

prior

year.

For

more

information about historical shell egg prices, see Part I Item I of our 2024 Annual Report.

Index

Our

dozens

sold

for

the

second

quarter

of

fiscal

14.5%

to

the

second

quarter

of

fiscal

In

addition

to

robust

demand,

we

had

an

in

with

the

acquisitions

of

the

shell

egg

production and processing business of ISE during the first quarter of fiscal 2025.

Our farm production

costs per dozen

produced for the

fiscal 2025 decreased

8.5%, or $0.08

compared to the

prior year period, primarily due to lower feed costs. Feed costs

per dozen produced decreased 12.8%, or $0.07, compared to the

fiscal 2024, primarily

due to lower

feed ingredient prices.

For information about

historical corn and

soybean

meal prices,

see Part

I Item

I of

our 2024

Annual Report.

Our egg

purchases and

other cost

of sales

increased $126.4

million

quarter-over-quarter, primarily

due to higher

shell egg prices as

well as an

increase in dozens purchased

to supply eggs for

our

those

in

our

ISE

acquisition,

during

the

higher

seasonal

demand

cycle

while

the

nation

experienced lower supply due to HPAI.

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