top of page

The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

FoodBev Media Logo
Access more as a FoodBev subscriber

Sign up to FoodBev and unlock more insights from the international food and beverage industry. Subscribers have access to webinars, newsletters, publications and more...

ADM reports Q4 2023 results, announces share repurchase agreement
FoodBev Media

FoodBev Media

14 March 2024

ADM reports Q4 2023 results, announces share repurchase agreement

ADM has published its financial results for the quarter and full year for 2023, reporting a lower-than-expected fourth-quarter profit. According to data from the London Stock Exchange Group, analysts predicted earnings of $1.43 per share in Q4. The grains giant reported adjusted earnings per share of $1.36 for the quarter. In a statement announcing the results, ADM said that lower pricing and execution margins led to a decline of $0.21 per share versus the prior year period, largely reflecting the impact of lower crush and origination margins. Unplanned downtime at its plant in Decatur, Illinois, was also reported to have negatively impacted the fourth-quarter EPS. Operating profit for its ag services and oilseeds business was $954 million during the fourth quarter, down 20% compared to the prior year period. The decrease was driven by lower margins alongside pressure on global grain and oilseed prices. Its carbohydrate solutions segment operating profit was $309 million during Q4 2023, up 12% compared to the prior year period. Starches and sweeteners increased by $9 million for the quarter. Nutrition segment operating profit was negative $10 million during the quarter, a 110% decrease compared to Q4 2022. Human nutrition operating profit was negative $25 million, approximately $112 million lower than the prior year period. As reported last month, ADM’s nutrition segment has been the subject of legal scrutiny following an investigation launched into the business’ accounting practices. The company's CFO, Vikram Luther, was suspended with interim CFO Ismael Roig stepping in, and earnings forecasts were revised. ADM reported adjusted earnings of $6.98 per share for the full year ending 31 December 2023. It provided its outlook for 2024, expecting adjusted earnings per share in the range of $5.25 to $6.25 per share. Global grain and oilseed supply is expected to increase due to anticipated improvements in weather supporting increased production in key South American countries. The company expects global soybean crush margin to decline in 2024. In carbohydrate solutions, it predicts margin expansion in starches and sweeteners to be partially offset by lower milling margins and ethanol margins, leading to slightly lower operating income versus 2023. Meanwhile, ADM predicts mid-single-digit revenue growth and operating income for its nutrition segment versus 2023. The company also announced an additional $2 billion in share repurchases this week, through an existing share repurchase programme running throughout 2024. This includes $1 billion through an accelerated share repurchase agreement with Merrill Lynch International, an affiliate of BofA Securities. ADM’s board chair and CEO, Juan Luciano, commented: “We finished 2023 with strong momentum in terms of returning cash to our shareholders, and we will continue to prioritise shareholders in our cash deployment in 2024”.

Related posts
Modern beverages for every lifestyle from ADM
Partner content

Modern beverages for every lifestyle from ADM

ADM and Bayer expand regenerative agriculture partnership
Agriculture

ADM and Bayer expand regenerative agriculture partnership

Tetra Pak unveils industrial mixer to streamline liquid protein processing
Manufacturing

Tetra Pak unveils industrial mixer to streamline liquid protein processing

ADM injects $1m into Kansas State University agriculture initiative
Finance

ADM injects $1m into Kansas State University agriculture initiative

ADM reports revenue drop in Q1 2024
Finance

ADM reports revenue drop in Q1 2024

ADM’s CFO Luthar to resign as US government investigation looms – Reuters
Business

ADM’s CFO Luthar to resign as US government investigation looms – Reuters

bottom of page