Cargill posted a 5% increase in revenue in its first-quarter results as it benefitted from strong international demand for beef.
The US company also profited from “solid” oilseed processing results, with total revenue at $28.7 billion. In the three months to 31 August, net income rose 5% on the previous year to $1.02 billion.
However, the firm was affected by the US turkey meat market which was “weighed down by excess supply relative to demand”.
Cargill said that despite an improved performance in China and Europe, a mix of challenges in Central America and Southeast Asia reduced results in its global poultry business.
The company posted slightly lower earnings in its food ingredients and applications divisions. Gains were recorded in cocoa, chocolate, edible oils and malt, while earnings in starches, sweeteners and texturisers were affected by lower ethanol prices and trading results in North America and currency devaluations in emerging markets.
Cargill CEO David MacLennan said: “Our customers are choosing Cargill more and more often because we provide them the confidence they need to win in a fast-changing world.”
“We give them an edge by connecting them to our team’s expertise, unique capabilities and global network. Whether it’s sustainably sourced foods and feeds, digitally driven insights, or supply chain risk management, we will continue innovating to provide an integrated set of solutions that meet their needs.”
During the quarter, Cargill has undertaken a range of investments globally at facilities in Brazil, the UK and Belgium.
It has also partnered with ADM to form SoyVen, a new joint venture to provide soybean meal and oil for customers in Egypt.
© FoodBev Media Ltd 2019