ADM’s net earnings grew 77.2% in the first quarter

Thanks to a significant increase in demand for soy, the net earnings of the American company Archer Daniels Midland (ADM), one of the largest agribusiness companies in the world, grew 77.2% in the first quarter of this year, to US$ 689 million. Adjusted net earnings grew 86% to US$ 783 million.

The company’s oilseeds division broke a record in the first quarter, with an operating profit that was 84% higher than the same period last year, of US $ 777 million. Of this total, US$ 382 million was profits from crushing grains.

“Processing presented its best quarter of all time, given the company’s global presence, which allowed generated strong margins in the grinding of soybeans and other seeds, also driven by the demand for vegetable oil and limited soybean stocks,” said ADM, in a note.

“In North America, milling work in the period helped to capitalize on strong Chinese demand, resulting in exceptional performance. The results from South America fell significantly due to the reduction in the producers’ sales compared to the previous year”, the company added.

The carbohydrate solutions area had a profit of US$ 222 million in the quarter, compared to US$ 99 million a year earlier. In this segment, the company stated that all products had higher sales and margins, including starches, sweeteners, and fuel ethanol.

In the nutrition segment, the annual gain was 8.4%, with a net operating profit of US$ 154 million. Only the area of ​​animal nutrition performed slightly worse than in the first quarter of 2020.

ADM’s revenue in the first quarter totaled US$ 18.9 billion, an increase of 26.3% compared to the first quarter of 2020.

“ADM delivered an excellent first quarter. As expected, we achieved strong profits covering all of our three businesses and had the sixth consecutive quarter of year-over-year adjusted operating profit growth, ”said Juan Luciano, ADM president and CEO.

Source: Valor

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