Archer Daniels Midland (ADM) has reported full-year 2017 revenue of $60.8 billion, down 2.4% on 2016.
Group-wide operating profit fell $168 million from $2.7 billion to $2.54 billion. Meanwhile, fourth-quarter operating profit was $73 million lower and fourth-quarter revenues were $431 million lower than the corresponding period in 2016.
Despite this, both fourth-quarter and full-year earnings grew, and ADM CEO Juan Luciano said the company remains optimistic as it continues to transform its business.
“We ended 2017 with a solid fourth quarter,” Luciano said. “We pulled the levers under our control – including cost and capital initiatives and interventions throughout the year – to deliver value for shareholders. I am also proud that our more than 31,000 colleagues delivered the best quarterly employee safety record in ADM’s history.
“For 2017 as a whole, we grew earnings per share, improved returns on invested capital and generated positive EVA [economic value added]. Looking ahead, we expect improving results through 2018 as our strategy advances. Our increasing international presence, and expanding capabilities in areas such as destination marketing, food and beverage innovation, and health and wellness, all help to position ADM for continued growth and value creation.”
Revenue within ADM’s corn and oilseeds processing operation totalled almost $32 billion, and and ADM Wild Flavours and Speciality Ingredients turned over $2.3 billion, meaning a combined revenue within ADM’s food portfolio of nearly $34.2 billion. That’s a 0.4% improvement on the year prior.
ADM was slightly stronger last year in Asia on the back of Wilmar International, its agribusiness joint-venture in Singapore.
During 2017, it raised its stake in the company slightly and has continued to focus on developing products that meet the needs of Asian consumers. In January, ADM inaugurated a new innovation centre in Singapore that will house a number of labs, including a food and flavour analytics lab, a beverage and dairy applications lab and a bakery and confectionery lab.
ADM claims the new facility will allow the brand to work closely with customers to develop ingredients and flavours which meet consumer needs in the areas of taste, nutrition, function and texture.
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