October 26, 2023

ADM's Q3 net income at US$821 million

Archer Daniels Midland Co. (ADM) reported on October 24 its third-quarter net income of US$821 million.

On a per-share basis, the Chicago, US-based company said it had profit of US$1.52. Earnings, adjusted for asset impairment costs and non-recurring costs, were US$1.63 per share.

The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of US$1.50 per share.

The agribusiness giant posted revenue of US$21.7 billion in the period, which fell short of Wall Street forecasts. Five analysts surveyed by Zacks expected US$23.22 billion.

"ADM again delivered a strong quarter in increasingly dynamic market conditions as we continued to adjust our business model to meet the evolving needs of our customers," said ADM chair of the board and chief Juan Luciano. "Through targeted investments in innovation and a focus on efficiencies that align to our customers' goals, we are strengthening critical partnerships and expanding our new profit opportunities to deliver additional shareholder value."

"(ADM's) Ag Services & Oilseeds delivered another solid quarter, leveraging the strength of our Brazilian export capabilities, extending regenerative agriculture partnerships and commissioning our Spiritwood (North Dakota, the United States) production facility to serve growing demand for renewable green diesel," he added. "Carbohydrate Solutions drove strong results through excellent execution in favorable ethanol, starches and sweeteners margin environments, while extending customer wins in BioSolutions and formally advancing the Broadwing Energy project for lower carbon intensity power generation in Decatur (Georgia, US). Within Nutrition, the outstanding growth of Flavors continues to outpace the market and Health & Wellness is developing the next generation of evidence-based solutions, while we address pockets of softness in other areas of the portfolio. With strong performance to date in 2023 and a constructive expectation for the remainder of the year, we are again raising our full-year earnings outlook."

ADM shares have declined 22% since the beginning of the year, while the S&P's 500 index has risen almost 10%. The stock has fallen 19% in the last 12 months.

- AP