Cal-Maine Foods (CALM) Stephens 26th Annual Investment Conference | NASH2024 summary

Company overview and market position

• Leading US producer and distributor of fresh eggs, with 21% domestic market share and 15% of US laying hens as of August 2024.

• Family-owned with 53.8% voting shares, operating with a long-term, family-oriented culture.

• Member of Eggland's Best cooperative, representing 50% of Eggland's Best and 45% of Land O'Lakes branded egg sales in 2023.

• Track record of strong operational performance, regional diversity, and adaptability.

• Second-largest competitor is Rose Acre, 65% smaller; industry remains highly fragmented.

Growth strategy and recent investments

• Growth driven by organic expansion, strategic M&A, and specialty/value-added eggs.

• Recent expansions in Utah completed; Kansas and Kentucky projects expected in 2025.

• 25 acquisitions through Q1 2025, including Fassio (cage-free), Dexter (feed mill, hatchery), and ISE America (Northeast market access).

• Specialty egg segment growing, with investments in Eggland's Best, cage-free, and Crepini.

• $808 million invested in cage-free since 2008; 40.8% of US flock cage-free as of October 2024.

Market dynamics and supply challenges

• Egg prices elevated due to supply constraints from avian influenza (HPAI) and strong demand.

• HPAI has caused significant bird losses, with 82.7 million birds affected since 2022.

• Hen numbers below five-year average, limiting supply and capping consumption despite strong demand.

• Recovery to normal hen levels could take a year or more, but creative flock management is ongoing.

• Hatch space remains tight, and rebuilding flocks is financially burdensome despite indemnity programs.