ADM has reported strong first quarter results, which the company attributed to the strong performance of its recent acquisitions and the introduction of new US tax legislation.
The company registered operating profits of $704 million, a year-on-year increase of 4%, while the company registered net revenue of $15.5 billion, a 3.6% increase compared to last year’s Q1 results.
ADM’s Oilseeds division performed strongly due in part to the 2017 biodiesel tax credit introduced by the US government, which saw the company’s refining operations register a $116 million rise in operating profit.
Despite this rise, the division’s crushing & origination and Asia operations both saw operating profits fall, which the company attributed to negative timing effects, though the company said that it expects these impacts to reverse over the course of the year.
ADM’s Starches and Sweeteners operations performed strongly, recording operating profits of $216 million – a year-on-year rise of $15 million – and the company claims that this was due to increasing contributions from the acquisition of Chamtor and its other North American joint ventures.
ADM Chairman and CEO Juan Luciano said: “The team executed exceptionally well in the first quarter, and we harvested the benefits of the strategic actions we took over the last few years, delivering strong results.
“Looking forward, we are focusing our growth efforts on five key platforms—animal nutrition, bioactives, carbohydrates, human nutrition and taste—as well as geographic regions that are seeing increasing consumer demand.
“And, through Readiness, we are enhancing our agility, streamlining and standardizing our processes, and implementing innovative technologies for our business and our customers.
“The consistent execution of our strategic plan, combined with our first quarter results, improving market conditions for many of our businesses, and the benefits of US tax reform, lead us to be even more confident about 2018.”
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