Archer Daniels Midland Co. reported net earnings of $712 million for its second quarter on Tuesday, a 27% increase from the same period the year prior.
These earnings are up from the first quarter, when ADM, a multinational food processing company, saw net earnings of $689 million.
“It was yet another excellent quarter for ADM, as our team delivered record earnings, with strong year-over-year profit growth across all three business units,” chairman and CEO Juan Luciano said in a release.
The company’s ag services and oilseeds division brought operating profits that were nearly 40% higher than the previous year, while its carbohydrate solutions results doubled. The company stated in the release that sweetener volumes were higher and ethanol margins improved.
“This is a very different ADM than even a few short years ago, and our transformation is far from over,” Luciano said. “Our productivity efforts are powering our execution, and — combined with our unparalleled global footprint and strong risk management — supported outstanding results in both Ag Services & Oilseeds and Carbohydrate Solutions.”
ADM's nutrition revenues saw 15% revenue growth and 27% higher year-over-year profits, to which Luciano stated the company is now raising its “expectations of a full-year profit growth for Nutrition to 20 percent.”
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The company’s human nutrition revenues were 13% higher than in the same quarter last year, while its animal nutrition revenue was up 17%.
However, the release stated the company's other business results were lower than the prior-year period due in a large part to captive insurance underwriting losses.
“We’re excited about our growth trajectory as we continue to expand our participation in large and fast-growing categories, from alternative proteins to renewable green diesel to plant-based biosolutions, with all of our strategic efforts underpinned by our unique opportunity to use ADM’s integrated value chain to advance decarbonization of the food and agriculture industries,” Luciano said.
“Given our great start to the year and our expectation of continued momentum in the second half," he added, "we are confident in delivering very strong full-year earnings, and we remain well-positioned for robust, sustained growth in the years to come.”
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