SAFM Sanderson Farms Dashboard

Management Discussion

• Net sales for the second quarter ended April 30, 2021 were $1,133.9 million as compared to $844.7 million for the second quarter ended April 30, 2020, an increase of $289.2 million, or 34.2%. Net sales of poultry products for the second quarter ended April 30, 2021 and 2020, were $1,087.2 million and $805.7 million, respectively, an increase of $281.5 million, or 34.9%. The increase in net sales of poultry products resulted from a 32.6% increase in the average sales price of poultry products sold and a 1.8% increase in the pounds of poultry products sold. During the second quarter of fiscal 2021, the
• Company sold 1,200.4 million pounds of poultry products, up from 1,179.7 million pounds during the second quarter of fiscal 2020. The increase in pounds of poultry products sold resulted from a 0.8% increase in the number of head processed and a 1.9% increase in the average live weight of the birds processed. Due to the winter storms mentioned above, the Company processed approximately 2.3 million fewer head during the second quarter of fiscal 2021 than what we originally planned prior to the storms' impacts. However, due to higher bird weights and improved yields, our actual pounds processed were higher than our original projection by approximately 1.9%, or 23.1 million pounds.
• Quoted market prices for poultry products increased during the second quarter of fiscal 2021 as compared to the same quarter of fiscal 2020. When compared to the second quarter of fiscal 2020, Urner Barry average market prices for jumbo wings, boneless breast meat, tenders, leg quarters and boneless thigh meat increased by 88.9%, 60.4%, 54.5%, 12.3% and 4.3%, respectively. Average realized prices for chicken products sold to retail grocery store customers increased by 4.6% during the second quarter of fiscal 2021 as compared to the same period of fiscal 2020, and retail grocery store demand remains strong.