USA – Archer Daniels Midland (ADM) is redoubling its focus on productivity and operations while maintaining disciplined approach to capital allocation.
During the third quarter financial reporting, the company said it foresee softer market conditions into next year despite accounting issues it faced.
Juan Luciano, ADM’s chairman and CEO, emphasized the importance of maintaining strong internal controls and accurate financial reporting, adding that “We are committed to transparency and improving our financial processes.”
The company’s total segment operating profit fell 28.3 per cent to US$1.04 billion (C$1.46 billion) in the quarter after restatement, while profit for Ag Services & Oilseeds segment slumped 43 per cent in the same period.
For the third quarter, ADM reported preliminary net earnings of US$18 million and adjusted net earnings of US$530 million.
Adjusted earnings per share are forecast at US$1.09, compared to US$1.52 in the same period last year.
The Ag Services and Oilseeds segment reported a 43% drop in operating profit to US$480 million, with lower margins in canola crushing due to increased European seed prices.
Other divisions also faced challenges. Carbohydrate Solutions saw a 3% decline in operating profit to US$452 million, while the Nutrition segment recorded a 19% drop to $105 million.
ADM revised its 2024 adjusted EPS guidance to US$4–US$5, down from US$5.25–US$6.25, citing reduced market demand, regulatory uncertainties, and internal challenges.
“This partnership with Lantmännen allows us to expand our reach in the European market and aligns with our strategy to lead in the plant-based protein sector,” O’Riordan said.
Lars-Gunnar Edh, Lantmännen’s executive vice president for the energy sector and acting managing director of Lantmännen Biorefineries, described the collaboration as an opportunity to transform the plant protein market.
“Ingredion brings extensive market knowledge and expertise in engineering and product development, which complements our production capabilities. Together, we aim to deliver innovative and high-quality pea protein isolates,” Edh explained.
The partnership comes amid rapid growth in the global plant protein market, which was valued at US$13.27 billion in 2022.
Industry projections suggest the market will reach US$25.53 billion by 2030, driven by increasing consumer interest in sustainable and plant-based foods.
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