Reported EPS of $0.98, Adjusted EPS1 of
$1.03
ADM (NYSE: ADM) today reported financial results for the quarter
ended June 30, 2024.
Second Quarter 2024 Highlights
- Net earnings of $486 million, adjusted net earnings1 of $508
million
- Earnings before taxes of $596 million, segment operating
profit1 of $1,014 million, adjusted segment operating profit1 of
$1,021 million
- Trailing four-quarter average return on invested capital (ROIC)
of 8.9%, trailing four-quarter average adjusted return on invested
capital (ROIC)1 of 9.7%
“ADM delivered solid results in the quarter, in spite of
challenging market conditions, and we are pleased with the progress
we are making against our 2024 priorities and strategic
initiatives,” said Chair of the Board and CEO Juan Luciano.
“In Ag Services & Oilseeds, while large South American crops
and shifts in farmer selling behaviors impacted results in the
second quarter, we expect improved margin opportunities through the
remainder of the year. In Carb Solutions, the team delivered solid
results driven by favorable Starches & Sweeteners and ethanol
margin environments, and we expect continued strong performance.
And our actions to recover profitability in the Nutrition segment
delivered sequential improvement in the quarter and set us up for
continued increases moving forward. With solid performance and
continued strong cash flow, we have returned significant cash to
shareholders through our repurchase efforts through the first two
quarters.
“In the second half of the year, improvements in both crush and
ethanol, our efforts in operational excellence, the focus on our
key priorities, and our team’s agility give us confidence in our
full-year expectations, despite uncertainties in the external
environment.”
Second Quarter and First Half 2024 Results
2Q 2024 Results Overview
($ in millions except per share
amounts)
Earnings Before Taxes
EPS (as reported)
GAAP
$596
$0.98
vs. 2Q 2023
(47)%
(42)%
Segment Operating
Profit1
Adjusted Segment Operating
Profit1
Adjusted EPS1
NON-GAAP
$1,014
$1,021
$1.03
vs 2Q 2023
(34)%
(37)%
(46)%
1H 2024 Results Review
($ in millions except per share
amounts)
Earnings Before Taxes
EPS (as reported)
GAAP
$1,481
$2.41
vs. 1H 2023
(41)%
(37)%
Segment Operating
Profit1
Adjusted Segment Operating
Profit1
Adjusted EPS1
NON-GAAP
$2,325
$2,338
$2.49
vs 1H 2023
(28)%
(30)%
(37)%
1 Non-GAAP financial measures; see pages
6, 8, 13, and 14 for explanations and reconciliations.
Summary of Second Quarter and First
Half 2024
For the second quarter ended June 30, 2024, earnings before
taxes were $596 million and earnings per share on a GAAP basis were
$0.98. Segment operating profit was $1,014 million and included
charges of $7 million, or approximately $0.01 per share, related to
impairments.
Earnings before taxes were $596 million for the second quarter,
down (47)% due to lower pricing and execution margins as well as
higher corporate unallocated costs. Adjusted segment operating
profit was $1,021 million for the second quarter, a 37% decrease
versus the prior year period. Adjusted earnings per share were
$1.03. Lower pricing and execution margins led to a decline of
$1.03 per share versus the prior year period, largely reflecting
the impact of lower crush and origination margins. Volume
improvement represented a $0.19 per share increase versus the prior
year period, primarily reflecting higher volumes in AS&O and
Carbohydrate Solutions. Higher costs of $0.07 per share were
primarily driven by $0.06 per share of unplanned downtime at
Decatur East. Share repurchases contributed $0.10 per share of
benefit in the quarter compared to the prior year period. During
the quarter, there was approximately a $0.02 per share negative
impact from mark-to-market timing in AS&O.
Earnings before taxes were $1,481 million for the first half,
down (41)% due to lower pricing and execution margins as well as
higher corporate unallocated costs. Adjusted segment operating
profit was $2,338 million for the first half of 2024, a 30%
decrease versus the prior year period. Adjusted earnings per share
were $2.49. Lower pricing and execution margins led to a decline of
$2.02 per share versus the prior year period, largely reflecting
the impact of lower crush and origination margins, as well as lower
mark-to-market timing impacts of $0.40 per share. Improved input
and manufacturing costs, primarily related to lower energy costs,
led to an increase of $0.08 per share versus the prior year period,
partially offset by a $0.10 negative impact from unplanned downtime
at Decatur East. Volume improvement represented a $0.37 per share
increase versus the prior year period, primarily reflecting higher
processed volumes in AS&O. Higher equity earnings led to a
$0.06 per share increase in the first half of 2024 versus the prior
year period. Corporate and Other accounted for a $0.18 per share
decrease, largely attributed to higher IT costs and legal fees.
Share repurchases contributed $0.21 per share of benefit compared
to the prior year period.
2Q 2024 Segment Overview
($ in millions, except where noted)
2Q 2024
2Q 20232
% Change
Adjusted Segment Operating
Profit1
$1,021
$1,628
(37)%
Segment Operating Profit:
Ag Services & Oilseeds
459
1,054
(56)%
Carbohydrate Solutions
357
319
12%
Nutrition
109
169
(36)%
Other
96
86
12%
1H 2024 Segment Overview
($ in millions, except where noted)
1H 2024
1H 20232
% Change
Adjusted Segment Operating
Profit1
$2,338
$3,353
(30)%
Segment Operating Profit:
Ag Services & Oilseeds
1,323
2,265
(42)%
Carbohydrate Solutions
605
598
1%
Nutrition
193
307
(37)%
Other
217
183
19%
1 Non-GAAP financial measure; see pages 6
and 8 for explanation and reconciliation.
2 2023 Ag Services & Oilseeds,
Carbohydrate Solutions, and Nutrition segment operating profits
have been revised to reflect immaterial error corrections with no
change to total Adjusted Segment Operating Profit. See Note 13,
Segment Information of the Company’s consolidated financial
statements included in the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2024.
Ag Services and Oilseeds
Summary
AS&O segment operating profit was $459 million during the
second quarter of 2024, down 56% compared to the elevated prior
year levels. The Ag Services subsegment operating profit was lower
versus the prior year quarter. In South America Origination, slower
farmer selling due to a smaller crop in Mato Grosso, and higher
logistics costs related to industry take-or-pay contracts led to
much lower margins. North American Origination results were lower,
as increased supply from Brazil and Argentina shifted export
competitiveness to South American origins, and limited carries and
trading opportunities in North America. In the Crushing subsegment,
global soybean crush margins decreased due to more balanced supply
and demand conditions and lower soybean oil values caused by
increased imports of used cooking oil. During the quarter, there
were negative mark-to-market timing impacts of approximately $15
million versus approximately $195 million of negative impacts from
the same period a year ago, totaling approximately $180 million of
positive impacts year-over-year. Refined Products & Other (RPO)
results were lower, as refining margins eased from historical
levels due to increased pre-treatment capacity and higher imports
of used cooking oil. Biodiesel margins were lower versus the prior
year due to lower LCFS and RIN values. During the quarter, there
were negative mark-to-market timing impacts in RPO of approximately
$90 million versus approximately $90 million of positive timing
impacts in the prior year, totaling approximately $180 million of
negative impacts year-over-year. Equity earnings from Wilmar were
$68 million during the quarter.
For the first half of 2024, AS&O delivered $1,323 million in
segment operating profit, lower versus the elevated prior year.
Ample supplies out of South America created more balanced supply
and demand conditions, leading to a lower margin environment in the
segment. Improved segment volumes and lower costs partially offset
the impact from lower margins. Equity earnings from Wilmar were 10%
higher versus the comparable period.
2Q 2024 AS&O Overview
($ in millions, except where noted)
2Q 2024
2Q 2023
% Change
Segment Operating Profit
$459
$1,054
(56)%
Ag Services
122
380
(68)%
Crushing
132
224
(41)%
Refined Products and Other
137
362
(62)%
Wilmar
68
88
(23)%
1H 2024 AS&O Overview
($ in millions, except where noted)
1H 2024
1H 2023
% Change
Segment Operating Profit
$1,323
$2,265
(42)%
Ag Services
354
728
(51)%
Crushing
445
651
(32)%
Refined Products and Other
307
689
(55)%
Wilmar
217
197
10%
Carbohydrate Solutions
Summary
Carbohydrate Solutions segment operating profit was $357 million
for the second quarter of 2024, up 12% compared to the prior year
period. The Starches & Sweeteners subsegment increased $22
million, as strong starches and sweeteners margins and higher
volumes were partially offset by lower margins in the EMEA region,
as well as lower domestic ethanol margins. In the Vantage Corn
Processing (VCP) subsegment, results improved $16 million compared
to the prior year period, as strong demand for exports of ethanol
supported higher margins.
For the first half of 2024, Carbohydrate Solutions segment
operating profit of $605 million was 1% higher than the prior year,
as improved volumes and lower costs were partially offset by lower
margins in the EMEA region and lower domestic ethanol margins.
2Q 2024 Carbohydrate Solutions Overview
($ in millions, except where noted)
2Q 2024
2Q 2023
% Change
Segment Operating Profit
$357
$319
12%
Starches and Sweeteners
323
301
7%
Vantage Corn Processors
34
18
89%
1H 2024 Carbohydrate Solutions Overview
($ in millions, except where noted)
1H 2024
1H 2023
% Change
Segment Operating Profit
$605
$598
1%
Starches and Sweeteners
584
614
(5)%
Vantage Corn Processors
21
(16)
231%
Nutrition Summary
Nutrition segment operating profit was $109 million for the
second quarter of 2024, down 36% compared to the prior year period.
Human Nutrition subsegment operating profit was $103 million,
approximately $82 million lower versus the prior year period, as
impacts related to unplanned downtime at Decatur East, a
normalizing texturants market, and higher manufacturing costs
negatively impacted margins. In the Animal Nutrition subsegment,
operating profit of $6 million was higher year-over-year as cost
optimization efforts and lower input costs supported higher
margins.
For the first half of 2024, Nutrition segment operating profit
of $193 million was 37% lower than the prior year, primarily driven
by negative impacts related to unplanned downtime at Decatur East,
a normalizing texturants market, and higher costs in Human
Nutrition.
2Q 2024 Nutrition Overview
($ in millions, except where noted)
2Q 2024
2Q 2023
% Change
Segment Operating Profit
$109
$169
(36)%
Human Nutrition
103
185
(44)%
Animal Nutrition
6
(16)
138%
1H 2024 Nutrition Overview
($ in millions, except where noted)
1H 2024
1H 2023
% Change
Segment Operating Profit
$193
$307
(37)%
Human Nutrition
179
323
(45)%
Animal Nutrition
14
(16)
188%
Other and Corporate
Summary
For the second quarter and first half, Other segment operating
profit was $96 million and $217 million, up 12% and 19%
respectively, compared to the prior year period, supported by
higher Captive Insurance results due to lower claim activity. ADM
Investor Services results decreased on lower interest income.
In Corporate for the second quarter, unallocated corporate costs
increased on higher global technology investments to support
digital transformation efforts, increased legal fees, and increased
securitization fees. Other Corporate was favorable compared to the
prior year period resulting from foreign currency hedges.
In Corporate for the first half, unallocated corporate costs
increased versus the prior year on higher global technology
investments to support digital transformation efforts, increased
legal fees, and increased securitization fees. Other Corporate was
unfavorable compared to the prior year period due to investment
valuation losses of approximately $18 million in our ADM Ventures
portfolio.
Outlook
The company affirms its previously provided EPS guidance for the
full year. ADM continues to expect adjusted earnings per share2 in
the range of $5.25 to $6.25 for the full year.
______________________________________
2Forecasted GAAP Earnings
Reconciliation: ADM is not presenting forecasted GAAP earnings
per diluted share or a quantitative reconciliation to forecasted
adjusted earnings per share in reliance on the unreasonable efforts
exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K. ADM
is unable to predict with reasonable certainty and without
unreasonable effort the impact of any impairment and timing of
restructuring-related and other charges, along with
acquisition-related expenses and the outcome of certain regulatory,
legal and tax matters. The financial impact of these items is
uncertain and is dependent on various factors, including timing,
and could be material to our Consolidated Statements of
Earnings.
Conference Call
Information
ADM will host a webcast today, July 30, 2024, at 8 a.m. Central
Time to discuss financial results and provide a company update. To
listen to the webcast, go to www.adm.com/webcast. A replay of the
webcast will also be available for an extended period of time at
www.adm.com/webcast.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re an essential global agricultural supply chain manager and
processor, providing food security by connecting local needs with
global capabilities. We’re a premier human and animal nutrition
provider, offering one of the industry’s broadest portfolios of
ingredients and solutions from nature. We’re a trailblazer in
health and well-being, with an industry-leading range of products
for consumers looking for new ways to live healthier lives. We’re a
cutting-edge innovator, guiding the way to a future of new consumer
and industrial solutions. And we're a leader in sustainability,
scaling across entire value chains to help decarbonize the multiple
industries we serve. Around the globe, our innovation and expertise
are meeting critical needs while nourishing quality of life and
supporting a healthier planet. Learn more at www.adm.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. All statements,
other than statements of historical fact included in this release,
are forward-looking statements. You can identify forward-looking
statements by the fact they do not relate strictly to historical or
current facts. These statements may include words such as
“anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,”
“believe,” “may,” “outlook,” “will,” “should,” “can have,”
“likely,” and other words and terms of similar meaning in
connection with any discussion of the timing or nature of future
operating or financial performance or other events. All
forward-looking statements are subject to significant risks,
uncertainties and changes in circumstances that could cause actual
results and outcomes to differ materially from the forward-looking
statements. These forward-looking statements are not guarantees of
future performance and involve risks, assumptions and
uncertainties, including, without limitation, those that are
described in the Company’s most recent Annual Report on Form 10-K
and in other documents that the Company files or furnishes with the
Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially
from those indicated or anticipated by such forward-looking
statements. Accordingly, you are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date they are made. Except to the extent required by law,
ADM does not undertake, and expressly disclaims, any duty or
obligation to update publicly any forward-looking statement after
the date of this announcement, whether as a result of new
information, future events, changes in assumptions or
otherwise.
Non-GAAP Financial
Measures
The Company uses certain “Non-GAAP” financial measures as
defined by the Securities and Exchange Commission. These are
measures of performance not defined by accounting principles
generally accepted in the United States, and should be considered
in addition to, not in lieu of, GAAP reported measures.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in this
press release.
Adjusted net earnings and Adjusted earnings per share (EPS).
Adjusted net earnings reflects ADM’s reported net earnings after
removal of the effect on net earnings of specified items as more
fully described in the reconciliation tables below. Adjusted EPS
reflects ADM’s fully diluted EPS after removal of the effect on EPS
as reported of specified items as more fully described in the
reconciliation tables below. Management believes that Adjusted net
earnings and Adjusted EPS are useful measures of ADM’s performance
because they provide investors additional information about ADM’s
operations allowing better evaluation of underlying business
performance and better period-to-period comparability. These
non-GAAP financial measures are not intended to replace or be
alternatives to net earnings and EPS as reported, the most directly
comparable GAAP financial measures, or any other measures of
operating results under GAAP. Earnings amounts described above have
been divided by the company’s diluted shares outstanding for each
respective period in order to arrive at an adjusted EPS amount for
each specified item.
Segment operating profit and adjusted segment operating profit.
Segment operating profit is ADM’s consolidated income from
operations before income tax excluding corporate items. Adjusted
segment operating profit is segment operating profit excluding
specified items as more fully described in the reconciliation
tables below. Management believes that segment operating profit and
adjusted segment operating profit are useful measures of ADM’s
performance because they provide investors information about ADM’s
business unit performance excluding corporate overhead costs as
well as specified items. Segment operating profit and adjusted
segment operating profit are not measures of consolidated operating
results under U.S. GAAP and should not be considered alternatives
to earnings before income taxes, the most directly comparable GAAP
financial measure, or any other measure of consolidated operating
results under U.S. GAAP.
Adjusted Return on Invested Capital (ROIC). Adjusted ROIC is
Adjusted ROIC earnings divided by adjusted invested capital.
Adjusted ROIC earnings is ADM’s net earnings adjusted for the
after-tax effects of interest expense on borrowings and specified
items. Adjusted invested capital is the sum of ADM’s equity
(excluding noncontrolling interests) and interest-bearing
liabilities and other specified items. Management believes Adjusted
ROIC is a useful financial measure because it provides investors
information about ADM’s returns excluding the impacts of specified
items and increases period-to-period comparability of underlying
business performance. Management uses Adjusted ROIC to measure
ADM’s performance by comparing Adjusted ROIC to its weighted
average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC
earnings and Adjusted invested capital are non-GAAP financial
measures and are not intended to replace or be alternatives to GAAP
financial measures.
ADM presents guidance of forecasted adjusted EPS for the full
year 2024 in this release. ADM is not able to present forecasted
GAAP EPS or a quantitative reconciliation to forecasted adjusted
EPS in reliance on the unreasonable efforts exemption provided
under Item 10(e)(1)(i)(B) of Regulation S-K. ADM is unable to
predict with reasonable certainty and without unreasonable effort
the impact of any impairment and timing of restructuring-related
and other charges, along with acquisition-related expenses and the
outcome of certain regulatory, legal and tax matters. The financial
impact of these items is uncertain and is dependent on various
factors, including timing, and could be material to ADM’s
consolidated statements of earnings.
Financial Tables Follow
Source: Corporate Release Source: ADM
Segment Operating Profit, Adjusted
Segment Operating Profit (both non-GAAP financial measures)
and Corporate Results
(unaudited)
Quarter ended
Six months ended
June 30
June 30
(In millions)
2024
2023
Change
2024
2023
Change
Earnings before income taxes
$
596
$
1,132
$
(536
)
$
1,481
$
2,529
$
(1,048
)
Corporate Unallocated
418
393
25
844
715
129
Segment Operating Profit
$
1,014
$
1,525
$
(511
)
$
2,325
$
3,244
$
(919
)
Specified items:
(Gain) loss on sales of assets
—
(11
)
11
—
(12
)
12
Impairment, restructuring charges and
contingency provisions
7
114
(107
)
13
121
(108
)
Adjusted Segment Operating
Profit
$
1,021
$
1,628
$
(607
)
$
2,338
$
3,353
$
(1,015
)
Segment Operating Profit:
Ag Services and Oilseeds
$
459
$
1,054
$
(595
)
$
1,323
$
2,265
$
(942
)
Ag Services
122
380
(258
)
354
728
(374
)
Crushing
132
224
(92
)
445
651
(206
)
Refined Products and Other
137
362
(225
)
307
689
(382
)
Wilmar
68
88
(20
)
217
197
20
Carbohydrate Solutions
$
357
$
319
$
38
$
605
$
598
$
7
Starches and Sweeteners
323
301
22
584
614
(30
)
Vantage Corn Processors
34
18
16
21
(16
)
37
Nutrition
$
109
$
169
$
(60
)
$
193
$
307
$
(114
)
Human Nutrition
103
185
(82
)
179
323
(144
)
Animal Nutrition
6
(16
)
22
14
(16
)
30
Other Business
$
96
$
86
$
10
$
217
$
183
$
34
Corporate Results
$
(418
)
$
(393
)
$
(25
)
$
(844
)
$
(715
)
$
(129
)
Interest expense - net
(128
)
(125
)
(3
)
(238
)
(228
)
(10
)
Unallocated corporate costs
(292
)
(262
)
(30
)
(596
)
(510
)
(86
)
Other
6
(1
)
7
6
23
(17
)
Specified items:
Gain (loss) on debt conversion option
—
1
(1
)
—
6
(6
)
Expenses related to acquisitions
(4
)
(3
)
(1
)
(4
)
(3
)
(1
)
Restructuring charges
—
(3
)
3
(12
)
(3
)
(9
)
Segment operating profit, a non-GAAP
financial measure, is ADM’s consolidated income from operations
before income tax excluding corporate items. Adjusted segment
operating profit, a non-GAAP financial measure, is segment
operating profit excluding specified items. Management believes
that segment operating profit and adjusted segment operating profit
are useful measures of ADM’s performance because they provide
investors information about ADM’s business unit performance
excluding corporate overhead costs as well as specified items.
Segment operating profit and adjusted segment operating profit are
not measures of consolidated operating results under U.S. GAAP and
should not be considered alternatives to earnings before income
taxes, the most directly comparable GAAP financial measure, or any
other measure of consolidated operating results under U.S.
GAAP.
Consolidated Statements of
Earnings
(unaudited)
Quarter ended
Six months ended
June 30
June 30
2024
2023
2024
2023
(in millions, except per share
amounts)
Revenues
$
22,248
$
25,190
$
44,095
$
49,262
Cost of products sold (1)
20,852
23,307
41,040
45,299
Gross profit
1,396
1,883
3,055
3,963
Selling, general, and administrative
expenses (2)
907
841
1,858
1,722
Asset impairment, exit, and restructuring
costs
7
60
25
67
Equity in (earnings) losses of
unconsolidated affiliates
(152
)
(151
)
(364
)
(325
)
Interest and investment income
(140
)
(142
)
(263
)
(276
)
Interest expense (3)
187
180
353
327
Other (income) expense - net (4)
(9
)
(37
)
(35
)
(81
)
Earnings before income taxes
596
1,132
1,481
2,529
Income tax expense (benefit) (5)
115
204
281
429
Net earnings including noncontrolling
interests
481
928
1,200
2,100
Less: Net earnings (losses) attributable
to noncontrolling interests
(5
)
1
(15
)
3
Net earnings attributable to
ADM
$
486
$
927
$
1,215
$
2,097
Diluted earnings per common
share
$
0.98
$
1.70
$
2.41
$
3.82
Average diluted shares outstanding
493
546
503
549
(1) Includes a contingency loss provision
of $62 million related to import duties in the prior quarter and
YTD, respectively.
(2) Includes acquisition-related expenses
of $4 million in the current quarter and YTD. Includes
acquisition-related expenses of $3 million in the prior quarter and
YTD.
(3) Includes (gains) losses related to the
mark-to-market adjustment of the conversion option of the
exchangeable bond issued in August 2020 of $(1) million and $(6)
million in the prior quarter and YTD, respectively.
(4) Includes net (gains) losses related to
the sale of certain assets of $(11) million and $(12) million in
the prior quarter and YTD, respectively.
(5) Includes the tax expense impact of
specified items and tax discrete items totaling $11 million and $14
million in the current quarter and YTD, respectively. Includes the
tax expense (benefit) impact of the above specified items and tax
discrete items totaling $1 million and $21 million in the prior
quarter and YTD, respectively.
Summary of Financial Condition
(unaudited)
June 30, 2024
June 30, 2023
(in millions)
Net Investment In
Cash and cash equivalents
$
764
$
1,426
Operating working capital
9,827
10,898
Property, plant, and equipment
10,628
10,127
Investments in affiliates
5,557
5,665
Goodwill and other intangibles
6,970
6,542
Other non-current assets
2,581
2,479
$
36,327
$
37,137
Financed By
Short-term debt
$
2,312
$
125
Long-term debt, including current
maturities
8,248
8,545
Deferred liabilities
3,306
3,188
Temporary equity
302
304
Shareholders’ equity
22,159
24,975
$
36,327
$
37,137
Summary of Cash Flows
(unaudited)
Six months ended
June 30
2024
2023
(in millions)
Operating Activities
Net earnings
$
1,200
$
2,100
Depreciation and amortization
566
521
Asset impairment charges
10
46
(Gains) losses on sales/revaluation of
assets
9
(32
)
Other - net
(93
)
(145
)
Other changes in operating assets and
liabilities
(524
)
(1,591
)
Total Operating Activities
1,168
899
Investing Activities
Purchases of property, plant and
equipment
(690
)
(614
)
Net assets of businesses acquired
(936
)
—
Proceeds from sale of business/assets
16
17
Investments in affiliates
(8
)
(6
)
Other investing activities
6
(8
)
Total Investing Activities
(1,612
)
(611
)
Financing Activities
Long-term debt borrowings
—
500
Long-term debt payments
—
(662
)
Net borrowings (payments) under lines of
credit
2,208
(371
)
Share repurchases
(2,327
)
(1,001
)
Cash dividends
(503
)
(494
)
Other
(39
)
(103
)
Total Financing Activities
(661
)
(2,131
)
Effect of exchange rate on cash, cash
equivalents, restricted cash, and restricted cash equivalents
(14
)
(3
)
Increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
(1,119
)
(1,846
)
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - beginning of period
5,390
7,033
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - end of period
$
4,271
$
5,187
Segment Operating Analysis
(unaudited)
Quarter ended
Six months ended
June 30
June 30
2024
2023
2024
2023
(in ‘000s metric tons)
Processed volumes (by
commodity)
Oilseeds
8,872
8,783
18,259
17,410
Corn
4,482
4,448
8,890
8,842
Total processed volumes
13,354
13,231
27,149
26,252
Quarter ended
Six months ended
June 30
June 30
2024
2023
2024
2023
(in millions)
Revenues
Ag Services and Oilseeds
$
17,333
$
19,844
$
34,552
$
38,423
Carbohydrate Solutions
2,894
3,381
5,577
6,918
Nutrition
1,908
1,853
3,744
3,706
Other Business
113
112
222
215
Total revenues
$
22,248
$
25,190
$
44,095
$
49,262
Adjusted Earnings Per Share A non-GAAP
financial measure (unaudited)
Quarter ended June 30
Six months ended June 30
2024
2023
2024
2023
In millions
Per share
In millions
Per share
In millions
Per share
In millions
Per share
Net earnings and fully diluted
EPS
$
486
$
0.98
$
927
$
1.70
$
1,215
$
2.41
$
2,097
$
3.82
Adjustments:
Loss (gain) on sales of assets and
businesses (a)
—
—
(8
)
(0.02
)
—
—
(9
)
(0.02
)
Impairment, restructuring charges and
contingency provisions (b)
5
0.01
93
0.17
23
0.04
98
0.18
Expenses related to acquisitions (c)
3
0.01
2
—
3
0.01
2
—
Loss (gain) on debt conversion option
(d)
—
—
(1
)
—
—
—
(6
)
(0.01
)
Tax adjustment (e)
14
0.03
21
0.04
17
0.03
3
0.01
Sub-total adjustments
22
0.05
107
0.19
43
0.08
88
0.16
Adjusted net earnings and adjusted
EPS
$
508
$
1.03
$
1,034
$
1.89
$
1,258
$
2.49
$
2,185
$
3.98
(a)
Prior quarter and YTD gain of $11
million and $12 million pretax ($8 million and $9 million after
tax), respectively, was related to the sale of certain assets, tax
effected using the applicable tax rate.
(b)
Current quarter and YTD charges of $7 million and $25 million
pretax ($5 million and $23 million after tax), respectively were
related to the impairment of certain assets and restructuring, tax
effected using the applicable tax rates. Prior quarter and YTD
charges of $117 million and $124 million pretax ($93 million and
$98 million after tax), respectively, were related to the
impairment of certain assets, restructuring, and a contingency loss
provision related to import duties, tax effected using the
applicable tax rates.
(c)
Current quarter and YTD expenses of $4
million ($3 million after tax) were related to certain
acquisitions, tax effected using the Company’s U.S. income tax
rate. Prior quarter and YTD expenses of $3 million ($2 million
after tax) were related to certain acquisitions, tax effected using
the Company’s U.S. income tax rate.
(d)
Prior quarter and YTD gain on debt
conversion option of $1 million and $6 million pretax ($1 million
and $6 million after tax), respectively.
(e)
Tax expense (benefit) adjustment due to
certain discrete items totaling $14 million and $17 million in the
current quarter and YTD, respectively. Tax expense (benefit)
adjustment due to certain discrete items totaling $21 million and
$3 million in the prior quarter and YTD, respectively.
Adjusted net earnings reflects ADM’s
reported net earnings after removal of the effect on net earnings
of specified items as more fully described above. Adjusted EPS
reflects ADM’s fully diluted EPS after removal of the effect on EPS
as reported of specified items as more fully described above.
Management believes that Adjusted net earnings and Adjusted EPS are
useful measures of ADM’s performance because they provide investors
additional information about ADM’s operations allowing better
evaluation of underlying business performance and better
period-to-period comparability. These non-GAAP financial measures
are not intended to replace or be alternatives to net earnings and
EPS as reported, the most directly comparable GAAP financial
measures, or any other measures of operating results under GAAP.
Earnings amounts described above have been divided by the company’s
diluted shares outstanding for each respective period in order to
arrive at an adjusted EPS amount for each specified item.
Return on Invested Capital and Adjusted
Return on Invested Capital
A non-GAAP financial measure
(unaudited)
ROIC Earnings (in millions)
Four Quarters
Quarter Ended
Ended
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
June 30, 2024
June 30, 2024
Net earnings attributable to ADM
$
821
$
565
$
729
$
486
$
2,601
Adjustments:
Interest expense
97
109
115
135
456
Tax on interest
(23
)
(26
)
(27
)
(32
)
(108
)
Total ROIC Earnings
$
895
$
648
$
817
$
589
$
2,949
Total ROIC Earnings
$
895
$
648
$
817
$
589
$
2,949
Other Adjustments
59
155
21
22
257
Total Adjusted ROIC Earnings
$
954
$
803
$
838
$
611
$
3,206
Invested Capital (in millions)
Quarter Ended
Trailing Four
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
June 30, 2024
Quarter Average
Equity (1)
$
25,228
$
24,132
$
23,219
$
22,148
$
23,682
+ Interest-bearing liabilities (2)
8,346
8,370
9,995
10,576
9,322
Total Invested Capital
$
33,574
$
32,502
$
33,214
$
32,724
$
33,004
Total Invested Capital
$
33,574
$
32,502
$
33,214
$
32,724
$
33,004
Other Adjustments
59
155
21
22
64
Total Adjusted Invested Capital
$
33,633
$
32,657
$
33,235
$
32,746
$
33,068
Return on Invested Capital
8.9
%
Adjusted Return on Invested
Capital
9.7
%
(1) Excludes noncontrolling interests
(2) Includes short-term debt, current
maturities of long-term debt, finance lease obligations, and
long-term debt
ROIC is ROIC earnings divided by invested
capital. ROIC earnings is ADM’s net earnings adjusted for the
after-tax effects of interest expense on borrowings. Invested
capital is the sum of ADM’s equity (excluding noncontrolling
interests) and interest-bearing liabilities.
Adjusted ROIC is Adjusted ROIC earnings
divided by adjusted invested capital. Adjusted ROIC earnings is
ADM’s net earnings adjusted for the after-tax effects of interest
expense on borrowings, and specified items. Adjusted invested
capital is the sum of ADM’s equity (excluding noncontrolling
interests) and interest-bearing liabilities adjusted for the
after-tax effect of specified items. Adjusted ROIC on a trailing
four quarter average basis is equal to the average trailing four
quarters of adjusted ROIC earnings divided by the average trailing
four quarters of adjusted invested capital. Management believes
Adjusted ROIC is a useful financial measure because it provides
investors information about ADM’s returns excluding the impacts of
specified items and increases period-to-period comparability of
underlying business performance. Management uses Adjusted ROIC to
measure ADM’s performance by comparing Adjusted ROIC to its
weighted average cost of capital (WACC). Adjusted ROIC, Adjusted
ROIC earnings and Adjusted invested capital are non-GAAP financial
measures and are not intended to replace or be alternatives to GAAP
financial measures.
Adjusted Earnings Before Interest,
Taxes, and Depreciation and Amortization (EBITDA) A non-GAAP
financial measure (unaudited)
The tables below provide a reconciliation
of net earnings to adjusted EBITDA for the trailing four quarters
ended June 30, 2024.
Four Quarters
Quarter Ended
Ended
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
June 30, 2024
June 30, 2024
(in millions)
Net earnings
$
821
$
565
$
729
$
486
$
2,601
Net earnings (losses) attributable to
noncontrolling interests
3
(23
)
(10
)
(5
)
(35
)
Income tax expense
207
192
166
115
680
Interest expense
97
109
115
135
456
Depreciation and amortization
261
277
280
286
1,104
EBITDA
1,389
1,120
1,280
1,017
4,806
(Gain) loss on sales of assets and
businesses
2
(7
)
—
—
(5
)
Impairment and restructuring charges and
contingency provisions.
71
172
18
7
268
Railroad maintenance expense
26
39
—
4
69
Expenses related to acquisitions
3
1
—
4
8
Adjusted EBITDA
$
1,491
$
1,325
$
1,298
$
1,032
$
5,146
EBITDA is defined as earnings before
interest, taxes, depreciation and amortization. Adjusted EBITDA is
defined as EBITDA, adjusted for specified items. The Company
calculates adjusted EBITDA by removing the impact of specified
items and adding back the amounts of income tax expense, interest
expense on borrowings, and depreciation and amortization to net
earnings. Management believes that EBITDA and adjusted EBITDA are
useful measures of the Company’s performance because they provide
investors additional information about the Company’s operations
allowing better evaluation of underlying business performance and
better period-to-period comparability. EBITDA and adjusted EBITDA
are non-GAAP financial measure and are not intended to replace or
be an alternative to net earnings, the most directly comparable
GAAP financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730432957/en/
Media Contact Brett Lutz media@adm.com 312-634-8484
Investor Relations Megan Britt Megan.Britt@adm.com
872-257-8378
Grafico Azioni Archer Daniels Midland (NYSE:ADM)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Archer Daniels Midland (NYSE:ADM)
Storico
Da Feb 2024 a Feb 2025
