Sanderson Farms Q1 Loss Widens - Quick Facts

(RTTNews) - Sanderson Farms Inc. (SAFM) on Thursday reported a net loss for the first quarter of $38.6 million or $1.76 per share, wider than net loss of $17.8 million or $0.82 per share in the year-ago period.

Net sales for the quarter rose to $823.1 million from $743.4 million for the same period a year ago.

On average, analysts polled by Thomson Reuters expected the company to report loss of $0.92 per share for the quarter on revenues of $801.1 million. Analysts' estimates typically exclude special items.

"Our results for the first quarter reflect continued challenging market conditions with market prices for boneless breast meat produced at our plants that process larger birds for food service customers reaching record low levels in January," said Joe Sanderson, Jr., chairman and chief executive officer of Sanderson Farms.

Sanderson Farms said that while the devastating COVID-19 virus is currently disrupting the markets, depressing demand, negatively affecting shipping and supply chain logistics and slowing China's economic growth rate, it believes demand for protein from China is strong. The company expects to benefit in 2020 from the return to an open market.

Sanderson Farms also said it is continuing to move toward full production at its new Tyler, Texas plant, and the start-up has gone well. The company expects to reach full production during its second fiscal quarter.