USA- ADM has posted revenue of US$24.07 billion in its first-quarter results ending 31st March 2023, beating Wall Street projections of US$23.48 billion.
Additionally, ADM’s Q1 2023 earnings per share (EPS) were US$2.12, significantly higher than the US$1.86 EPS reported in the previous year.
“Our continued strong performance in the first quarter demonstrates ADM’s unique ability to deliver results through a rapidly evolving external environment and showcases our team’s agility in responding to opportunities that leverage our company’s unparalleled global footprint and capabilities,” said Chairman and CEO Juan Luciano.
Luciano also credited ADM’s broad portfolio for continuous service to diverse global food, feed, and industrial markets, which creates compelling value for customers and shareholders.
The Ag Services & Oilseeds operation results were especially higher than in the first quarter of 2022, boosting the business’ overall revenue.
The segment registered an operating profit of US$1.2 billion, compared to the US$ 1.01 billion profit the segment registered in 2022.
According to ADM’s press release, origination, excellent risk management, and higher export demand due to the record Brazilian soybean crop drove significantly higher year-over-year results in South America.
Additionally, results for North American origination were higher, driven by stronger soybean exports.
Crushing results remained similar to the first quarter of last year, capitalizing on historically strong soybean and soft seed crush margins supported by robust demand for renewable fuels in North America.
In Europe, the Middle East, and Africa (EMEA), crush margins were lower year-over-year as trade flows adjusted from the disruptions resulting from the war in Ukraine.
Additionally, there were approximately US$240 million of positive timing effects in the quarter, including positive impacts from declining crush margins at the end of the period.
On the other hand, Refined Products and Other results were substantially higher than in the prior-year period.
North American biodiesel results were higher, with record volumes and strong margins supported by favorable blend economics and tight diesel stocks.
In EMEA, domestic demand for food oil and export demand for biodiesel drove strong margins.
The Carbohydrate Solutions segment’s operating profit was 14% down to US$273 million. One contributing factor is that Vantage Corn Processors sustained a loss of US$34 million in the quarter, compared to a profit of US$1 million in the same period last year.
These two segments form most of the business for ADM, and their results significantly affect how well the company does.
“ADM’s integrated value chain has helped each of our business segments to deliver strong earnings in the quarter. Our foundational businesses in Ag Services & Oilseeds and Carbohydrate Solutions both continue to manage market volatility and deliver strong margins across the value chain,” Luciano explained.
In the Nutrition segment, operating profit decreased 23% to US$145 million in the first quarter from US$189 million a year ago. Within the segment, human nutrition profit fell to US$138 million from US$141 million, while animal nutrition dropped to US$7 million from US$48 million.
The CEO, Luciano, foresees improving results in the months to come, and advances in forming partnerships with players in different industries.
“With a strong balance sheet and healthy cash flows, ADM is poised to continue investing in profitable growth, and we are excited about our strategic plan for 2023 and beyond, ” he commented.