Archer-Daniels Midland Co (ADM, Financial) released its Q3 2023 earnings report on October 24, 2023. The company reported strong performance in an increasingly dynamic market environment, with net earnings of $0.8 billion and adjusted net earnings of $0.9 billion. The trailing four-quarter average adjusted ROIC was 13.2%.
Performance Highlights
ADM's Ag Services & Oilseeds segment delivered another solid quarter, leveraging the strength of its Brazilian export capabilities and extending regenerative agriculture partnerships. The Carbohydrate Solutions segment also drove strong results through excellent execution in favorable ethanol, starches, and sweeteners margin environments. However, the Nutrition segment faced some challenges, with pockets of softness in other areas of the portfolio.
Financial Achievements
ADM reported earnings per share (EPS) of $1.52, with adjusted EPS of $1.63. The company's segment operating profit was $1.42 billion, with an adjusted segment operating profit of $1.49 billion. The Ag Services and Oilseeds segment contributed $848 million to the operating profit, while the Carbohydrate Solutions and Nutrition segments contributed $460 million and $138 million, respectively.
Income Statement Highlights
ADM's revenues for the quarter stood at $21.7 billion, with a gross profit of $1.81 billion. The company's net earnings attributable to ADM were $821 million, translating to a diluted earnings per common share of $1.52.
Balance Sheet and Cash Flow Statement Highlights
As of September 30, 2023, ADM had cash and cash equivalents of $1.5 billion and operating working capital of $11 billion. The company's total operating activities generated $1.89 billion in cash, while investing activities used $1.06 billion in cash. Financing activities used $2.8 billion in cash, resulting in a net decrease in cash and cash equivalents of $1.99 billion for the period.
ADM's CEO, Juan Luciano, commented on the results, saying,
ADM again delivered a strong quarter in increasingly dynamic market conditions as we continued to adjust our business model to meet the evolving needs of our customers. With strong performance to date in 2023 and a constructive expectation for the remainder of the year, we are again raising our full-year earnings outlook."
For more detailed financial information, please visit the official ADM website.
