Revenue during the quarter grew 13.74 percent to $688.35 million from $605.17 million in the previous year period. Gross margin for the quarter expanded 363 basis points over the previous year period to 11.91 percent. Total expenses were 94.79 percent of quarterly revenues, down from 96.73 percent for the same period last year. This has led to an improvement of 194 basis points in operating margin to 5.21 percent.

Operating income for the quarter was $35.88 million, compared with $19.81 million in the previous year period.

"Our results for the first quarter reflect improved market prices for dark meat products sold from our big bird deboning plants compared with last year's first quarter," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "Leg quarter prices during last year's first fiscal quarter reflected avian influenza-related bans on United States poultry products by many of our export partners, which bans, except for China, have been lifted. Poultry market prices for our tray pack products sold to retail grocery store customers were only slightly lower when compared with the same period a year ago. On the other hand, the food service market remains weak. Traffic numbers through all categories of food service continue to trend lower, and market prices for boneless breast meat reflect that weakness. Demand and prices for jumbo wings were seasonally strong during the quarter."

Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 41 days for the last year period. Days sales outstanding went down to 17 days for the quarter compared with 19 days for the same period last year.

Days inventory outstanding has decreased to 18 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding was almost stable at 11 days for the quarter, when compared with the previous year period.