ADM Announces Second Quarter 2024 Financial Results

ADM today released financial results for the quarter ending June 30, 2024. The company reported net earnings of $486 million and adjusted net earnings of $508 million. Pre-tax profit was US$596 million. The segment's operating profit was US$1,014 billion. The segment's adjusted operating profit was US$1,021 billion. The average return on invested capital (ROIC) for the last four quarters was 8,9%. The adjusted return on invested capital was 9,7%.

Chairman and CEO Juan Luciano highlighted the solid results achieved despite challenging market conditions. He emphasized continued progress on the company's strategic priorities and initiatives for 2024. In the Agricultural Services and Oilseeds sector, large South American harvests and changes in farmers' selling behavior affected results. However, "margins are expected to improve throughout the year." In Carbohydrate Solutions, the team achieved solid results, driven by favorable margins in Starches and Sweeteners and ethanol. In the Nutrition segment, actions to recover profitability resulted in sequential improvements. With solid performance and strong cash flow, the company returned significant value to shareholders through share buybacks.

For the second quarter, pretax profit was $596 million. Earnings per share were $0,98. The segment's operating profit was US$1,014 billion, including charges of US$7 million related to impairments.

Adjusted earnings per share were $1,03. The decline in pricing and execution margins resulted in a decrease of $1,03 per share compared to the same period last year. The improvement in volume represented an increase of $0,19 per share. Higher costs, due to unplanned shutdowns at the Decatur East unit, had a negative impact of US$0,07 per share. The share buyback contributed a benefit of $0,10 per share.

For the first half, pre-tax profit was $1,481 billion, a 41% drop. The segment's adjusted operating profit was US$2,338 billion, a 30% reduction compared to the same period last year. Adjusted earnings per share were $2,49. The decline in prices and execution margins resulted in a reduction of $2,02 per share. Improved input and manufacturing costs, primarily related to lower energy costs, contributed to an increase of $0,08 per share. The share repurchase generated a benefit of $0,21 per share compared to the same period last year.

ADM said it continues to project adjusted earnings per share in the range of $5,25 to $6,25 for the full year.