USA – CHS Inc., one of America’s leading agricultural cooperatives, has tripled its net income for fiscal year 20222 to US$1.7 billion from US$554 million recorded in the fiscal year 2021.
Consolidated revenues for the Minnesota-based company rose to US$47.8 billion, a year-over-year increase of 24% when compared to US$38.4 billion achieved in the fiscal year 2021.
The agriculture segment was among the top performers reporting a US$359.5 million increase in pretax earnings to US$657.6 million.
Nitrogen Production reported pretax earnings of US$478.0 million which represents a $357.0 million increase while the energy segment reported pretax earnings of $616.6 million representing a $627.1 million increase versus the prior year.
CHS noted that refining margins in its energy segment were higher and drove improved earnings due to the tightening global supply and demand landscape.
Additionally, the cooperative’s global grain and processing and wholesale agronomy businesses within its ag segment benefited from strong global demand and increased margins.
Equity method investments performed well, with increased CF Nitrogen earnings resulting from strong global demand for urea and urea ammonium nitrate (UAN), coupled with decreased global supply.
“We appreciate the support of our member cooperatives and farmer-owners, which enabled us to deliver a substantial increase in earnings for the fiscal year, while also helping feed people around the world,” said Jay Debertin, president and CEO of CHS Inc.
“Additionally, our employees demonstrated their dedication to helping our owners and customers succeed in a turbulent year for agriculture.”
US$1 billion in cash returned to owners
Following an impressive financial year, the cooperative has announced a $1 billion cash return program that will be implemented in cash patronage and equity redemptions to member cooperatives and farmer-owners in fiscal year 2023.
About US$500 million will be made in cash patronage based on business done with CHS in fiscal year 2022, which ended on August 31, 2022 while another US$500 million in cash to its owners through equity redemptions.
This benefit of CHS ownership will be shared by hundreds of member cooperatives and thousands of farmer-owners.
The total of $1 billion distributed in cash would be the largest annual distribution to owners in CHS history and would bring the total amount returned to owners over the last 10 years to more than $3.1 billion.
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