Cargill has reported a 22% drop in net income in its third-quarter results following the introduction of the US Tax Cuts and Jobs Act.
Cargill was charged $161 million as a result of the new legislation, meaning its net income fell to $559 million from the $715 million figure recorded in the same period last year.
Despite this drop, the company reported a 2% year-on-year revenue rise as its third-quarter net revenue rose to $27.82 billion.
When excluding the tax charge, Cargill claims that it is keeping pace with last year’s figures and is on target to achieve its growth objectives.
Cargill’s Animal Nutrition & Protein division performed strongly, increasing sales of premixes, additives and micro-nutrients globally, as well as beef and egg proteins sales in North America.
However, profits from the company’s aqua nutrition and poultry products dropped compared to last year’s Q3 results, which the company attributed to lower pricing in some markets.
Earnings from the company’s Food Ingredients & Applications division decreased, though its cocoa, chocolate and edible oils products performed strongly and tempered the overall loss.
During the quarter, Cargill’s ingredients arm signed a strategic agreement with ingredients distributor Univar, which made its cocoa, edible oils and sweeteners available through Univar’s distribution network.
During this segment, the company’s Origination & Processing arm invested in technology to improve its supply chain and global supply operations, and earnings increased compared to the same period last year as a result of better trading opportunities in the global crop market.
David MacLennan, Cargill’s chairman and CEO said: “Our steady results from operations demonstrate that our strategic direction is the right one.
“The performance of our team worldwide keeps Cargill moving ahead, preparing us to continue to grow.”
© FoodBev Media Ltd 2018