US — Agricultural commodities trading giant ADM started the year on a high note and has reported an impressive year-over-year earnings and sales growth during the first quarter of fiscal 2021.

 Net earnings attributable to ADM in the first quarter ended March 31 jumped 76% to US$689 million from US$391 million recorded in the same period a year ago.

Revenues for the first quarter, on the other hand surged 26%, climbing to US$18.89 billion from $14.97 billion.

“I’m pleased to share with you results that demonstrate an outstanding start to 2021, building on our momentum from a record 2020,” Luciano said during an April 27 conference call with analysts.

 “We reported first-quarter adjusted earnings per share of $1.39, more than double the year-ago period. Adjusted segment operating profit was $1.2 billion, 86% higher than the first quarter of 2020 and our sixth consecutive quarter of year-over-year adjusted (operating profit) growth.”

The company’s operating profit in the Ag Services and Oilseeds segment increased 84% in the first quarter of fiscal 2021, climbing to US$777 million from US$422 million.

Ag services profit rose 27% during the quarter to US$209 million, while crushing profit soared to US$382 million from US$70 million.

Operating profit in the Carbohydrate Solutions segment increased 280% in the first quarter to US$259 million while those attributed to starches and sweeteners increased 124% during the quarter.

In the Nutrition segment, operating profit increased 8% to US$154 million in the first quarter of fiscal 2021, up from US$142 million a year ago.

Within the segment, human nutrition profit improved to $128 million from $113 million, while animal nutrition decreased to $26 million from $29 million.

The impressive year-over-year earnings and sales growth during the first quarter of fiscal 2021 has executives at ADM even more optimistic than they were at the beginning of the year.

Juan Luciano, chairman and chief executive officer says that optimism stems from “clear, favorable demand trends” for many of the company’s products.

Expansion of feed premix offering

Meanwhile, ADM is set to expand its feed premix offering following the acquisition of Veitanemese feed company Golden Farm Production & Commerce Company Ltd.

The acquisition of Golden Farm will bolster Wisium, ADM’s international premix brand, premix offerings in Vietnam which it acquired in 2019.

The acquisition includes Golden Farm’s premix facility in Long Khanh – Dong Nai  which will expand ADM’s vast capabilities in Vietnam.

“Following launch of Wisium’s line of products and services in Vietnam two years ago, this strategic step widens our range of value-added premix products and services across the country,” said François Fernandez, vice president, Wisium Premix and Services.

“We’ve been expanding Wisium’s capabilities around the globe, and we’re excited to continue to invest across Southeast Asia to expand and strengthen our position as a leader in the premix and services businesses.”

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE