Sanderson Farms Inc. turned a profit for the latest quarter, as it said demand for chicken products at grocery stores remained strong this year.
The Laurel, Miss.-based poultry company on Thursday posted a profit of $27.9 million, or $1.26 a share, compared with a loss of $22.9 million, or $1.05 a share, a year earlier. Analysts had forecast a loss of 4 cents a share, according to FactSet.
Sanderson’s sales rose 3.7% to $940 million from $906.5 million. Analysts were expecting $902.1 million.
The company is continuing to shift production toward tray packs that are in high demand in the retail-grocery market, Chairman and Chief Executive Joe Sanderson said.
“While demand from our food service customers has remained under pressure, demand for chicken products sold to retail grocery store customers remained strong through the end of the fiscal year,” Mr. Sanderson said. “We believe these conditions will continue until consumers return to restaurants and resume dining away from home in large numbers.”
