ADM registers exceptional increase in profits, earnings and revenue in first quarter

USA — American multinational food processing and commodities trading corporation ADM has registered exceptional increase in profits, earnings and revenue in first quarter.

ADM’s net earnings in the first quarter ended March 31 totaled $1.05 billion, equal to $1.86 per share on the common stock, up 53% from $689 million, in the same period a year ago.

Revenues for the first quarter ended March 31 totaled $23.65 billion, a 25% increase from $18.89 billion in the same period a year ago.

Operating profit in the Ag Services and Oilseeds segment increased 30% in the first quarter of fiscal 2022, climbing to $1.01 billion from $777 million with a 12% crushing profit increase to $428 million from $382 million.

ADM’s carbohydrates solutions business segment reported $317 million in segment operating profit for the first quarter, up $58 million, a 22% markup, from the same period of last year.

The starches and sweeteners subsegment reported $316 million in segment operating profit, up from the $222 million reported for the first quarter of 2021.

“The starches and sweeteners subsegment, including ethanol production from our wet mills, delivered much higher results versus the prior-year quarter,” said Vikram Luthar, ADM’s chief financial officer.

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 This driven by higher corn core product revenues, improved citric acid profits and excellent risk management in North America, higher volumes and margins in EMEA and higher volumes and margins in wheat milling, according to Luther.

ADM said that Vantage Corn Processors posted a profit of $1 million in the quarter, down sharply from $37 million in the same period a year ago citing position losses on ethanol inventory as prices fell early in the quarter.

Operating profit for the nutrition segment increased 23% to $189 million in the first quarter of fiscal 2022, up from $154 million a year ago. Within the segment, human nutrition profit improved to $141 million from $128 million, while animal nutrition increased to $48 million from $26 million.

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“Global trade results were higher, driven by strong performances in destination marketing and ocean freight,” said Vikram Luthar, chief financial officer.

“North American origination margins and volumes were lower year-over-year, including approximately $75 million in negative timing effects, which will reverse in the coming quarters.”

Looking ahead, ADM chairman and chief executive officer Juan Luciano said he expects the company’s performance for 2022 to exceed 2021’s results, despite continued global grain market tightness from reduced crop supplies caused by the weak Canadian canola crop, the short South American crops, and disruptions in the Black Sea region.

Management admitted that there will come a time when consumer demand will slow in the face of higher prices.

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