ADM managed to increase its revenue and operating profits in the first quarter of the year, as its Agricultural Services and Oilseeds segment achieved “crushing results” due to record soybean crops and biofuel demand.

The company today reports net earnings of US$1.2 billion and first-quarter earnings per share of US$2.12, US$2.09 on an adjusted basis. 

“ADM’s integrated value chain has helped each of our business segments to deliver strong earnings in the quarter. Our foundational businesses in Ag Services & Oilseeds and Carbohydrate Solutions both continue to manage market volatility and deliver strong margins across the value chain,” says Juan Luciano, chairman and CEO of ADM.

“We continue to see healthy pipeline growth and win rates in Human Nutrition that support our confidence in the earnings growth in the Nutrition segment, even as we navigate temporary challenges, particularly in parts of Animal Nutrition,” he continues.

Meanwhile, ADM’s Nutrition segment results “were significantly lower year-over-year” compared to 2021, as the business “continued to manage demand fulfillment challenges and destocking in certain categories.”

Animal Nutrition results underperformed “primarily due to much lower margins in amino acids,” according to the business.

Oilseeds boom
ADM highlights in its quarter results its solid margins and results in the segment. The company achieved high soybean exports in North America and record crops in Brazil. ADM brought its revenue in the quarter for the segment to US$18.58 billion, compared to US$18.25 billion last year.

“In North America, the team executed well, capitalizing on historically strong soybean and softseed crush margins that were supported by robust demand for renewable fuels,” explains the business.

Tight diesel stocks also allowed record volumes for ADM’s refined products.

Capitalizing on carbohydrates 
The company’s Sweeteners and Starches segment also increased revenues to reach US$3.54 billion, up from US$3.37 in 2022.

“Starches and Sweeteners subsegment capitalized on solid demand in the quarter. North America starches and sweeteners delivered strong volumes and margins,” explains ADM. 

“In EMEA, the team effectively managed margins in a dynamic operating environment to deliver improved results. The global wheat milling business posted much higher margins driven by robust customer demand,” details the business.

ADM’s corn processing segment posted worse results than last year due to “weaker ethanol margins” as the industry has high fuel stocks.

Month of alliances
ADM told FoodIngredientsFirst this month that the company is seeking strategic partnerships to drive innovation and propel the development and commercialization of products. The company entered two different alliances this month.

ADM and food tech company Believer Meats are collaborating to create novel foods made with cultivated meat, including hybrid plant and animal cell options.

The company is also joining bioactive ingredients company Brightseed to develop evidence-based functional synbiotic products that target microbiome enhancement. 

Moreover, in March ADM and Marel opened an innovation center to meet the demand of the growing alternative proteins market.