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Archer Daniels Midland has agreed to pay $40 million to settle a US Securities and Exchange Commission investigation into how it reported sales between business units.

According to ADM, the settlement draws a line under a probe that centred on the performance of its fast-growing nutrition business, a key pillar of the agribusiness group’s food and beverage strategy.

In addition, the US Department of Justice has separately closed its criminal investigation into ADM without taking action.

The SEC settlement, which ADM entered into without admitting or denying wrongdoing, relates to how the company reported intersegment transactions that affected the financial performance of individual business units, including its nutrition segment.

The regulator had alleged that the practices materially inflated the results of the nutrition division, which ADM has promoted to investors and customers as a major growth engine supplying flavours, proteins, sweeteners and functional ingredients to food and beverage manufacturers.

ADM said the accounting issues did not affect its consolidated earnings, cash flows or balance sheet, but required restatements of segment-level reporting.

The company corrected prior-period errors in March 2024 and restated its 2023 annual results as well as first- and second-quarter 2024 filings later that year.

The SEC has also brought civil charges against three former ADM executives, alleging they oversaw or approved adjustments to transactions between business units when the nutrition segment fell short of internal financial targets in 2021 and 2022.

Two of the former executives have agreed to pay civil penalties, while a third case is being litigated.

The outcome removes a lingering source of uncertainty around one of the world’s largest suppliers of ingredients spanning plant proteins, flavours, sweetening systems and speciality nutrition. ADM has invested heavily in higher-margin nutrition and value-added ingredients in recent years as it seeks to reduce exposure to more volatile commodity trading.

Following the internal investigation, ADM said it overhauled its financial leadership team and strengthened internal accounting controls and reporting processes. The company voluntarily disclosed its findings to regulators after the issue was identified by its audit committee.

Chief executive Juan Luciano said the settlement allows ADM to move forward, adding that the company had taken “extensive actions” to improve the accuracy of its financial reporting and reinforce governance.

ADM is due to report fourth-quarter and full-year results next week, with investors and industry customers likely to scrutinise performance in its nutrition and ingredients businesses, which supply multinational food, beverage and health brands.

Shares in ADM were little changed in late trading.