Cargill’s first-quarter revenue has edged ahead by 0.7%, boosted by demand for beef as well as cocoa and chocolate products.
The group’s revenue totalled $27.3 billion, slightly ahead of $27.1 billion in the first quarter of last year. Adjusted operating earnings were $888 million, while net earnings were $973 million – up 14% on last year.
Cargill CEO David MacLennan said: “We’re off to a good start in our new fiscal year, powered by the significant work we’ve done over the last few years and continuing to accelerate our performance. Even as market conditions vary across our sectors, our teams are delivering for our customers and achieving results to fuel future growth.”
In Cargill’s animal nutrition and protein business, results were lifted by consumer demand for beef, strong exports and more abundant cattle supplies. Global poultry fell behind the same quarter last year as weaker results in Central America undermined strong domestic sales and exports out of Southeast Asia.
In June Cargill acquired El Bucanero, one of Colombia’s leading producers of chicken and processed meats.
That deal was followed up by a commitment to invest €500 million in Colombia over the next five years, and Cargill has this week established a joint-venture in the UK with Faccenda Foods that brings together the two firms’ activities in chicken, turkey and duck.
In food ingredients and applications, cocoa and chocolate products – along with sweeteners and starches – were the highlights in most regions. The segment’s Asia-based businesses also realised improved volumes.
Earlier in the year, MacLennan warned that the success of the industry was reliant on open and inclusive trade policies, ahead of the British prime minister’s confirmation to the European Union that the UK would withdraw in 2019.
“The strength of our business rests in our people and communities,” MacLennan added today. “In a fast-changing world, we are doing all we can to create a workplace where employees can excel, to empower people with the skills they will need for the jobs of tomorrow, and to support the communities where we live and work.”
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