Global agribusiness giant ADM’s overall income increased by 11% in the first quarter of this year due to a strong performance by its Ag Services and Oilseeds division, which helped offset weaker performances by the company’s Carbohydrate Solutions and Nutrition segments, World Grain reported.
ADM’s first quarter net earnings ended 31 March totalled US$1.17bn, up 11% from US$1.06bn in the same period the previous year, the 26 April report said. First quarter revenues increased by 1.8% from US$23.65bn to US$24.07bn.
Announcing its first quarter results on 25 April, the company said results in its Ag Services & Oilseeds division were “significantly higher” than in the same period last year.
Operating profit in the Ag Services and Oilseeds segment increased 20% in the first quarter of this year from US$1.01bn to US$1.21bn, while the division’s profit rose from US$258M to US$348M. Crushing profit dipped slightly from US$428M to US$426M.
“In South American origination, excellent risk management and higher export demand due to the record Brazilian soyabean crop drove significantly higher year-over-year results. Results for North America origination were also higher, driven by stronger soyabean exports,” the company said.
Results for the company’s Refined Products and Other segment were substantially higher than the previous year, ADM said.
North American biodiesel results increased with record volumes and strong margins, supported by favourable blend economics and tight diesel stocks, the company said. In Europe, the Middle East, and Africa (EMEA), domestic demand for food oil and export demand for biodiesel drove strong margins.
Looking to the year ahead, ADM chairman, president and CEO Juan Luciano was quoted by World Grain as saying during a conference call with analysts on 25 April that despite some areas of weakened demand, the company was confident it would be able to deliver on its plans for 2023.
“We continue to advance partnership agreements with major players across multiple industries. From regenerative agriculture to alternative proteins, to sustainable fuels, to plant-based industrial and personal care products,” Luciano said.
The company expected accelerated growth in product areas such as bio-solutions, he added.