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ADM NYSE· Archer-Daniels-Midland Company
Earnings report Q4 2023

ADM Experiences Robust Revenue Growth Amidst Challenging Market Conditions

Segments of revenue

ADM's revenue for the fiscal year ending December 31, 2022, was $101.56 billion, a significant increase from the previous year's revenue of $93.94 billion. This growth was driven by a strong performance across all quarters, with the highest revenue of $27.28 billion reported in the second quarter.

Strengths

The company's robust revenue growth can be attributed to a combination of strategic acquisitions, such as the Deerland Probiotics and Enzymes acquisition, and strong demand for fiber and Vitamin E. The company's Animal Nutrition profits remained steady, comparable to 2021. Additionally, the Other Business operating profit saw a massive increase of 568%, driven by higher short-term interest rates and improved underwriting performance.

Challenges

Despite the impressive revenue growth, ADM faced several challenges. The company's net earnings attributable to controlling interests increased by 60% or $1.6 billion, to $4.3 billion, but this was lower than the previous year's net earnings of $4.34 billion. Additionally, increased competition in Brazil and inflationary pressures adversely impacted the company's results.

Noteworthy

It's worth noting that despite the challenges, ADM's productivity initiatives helped mitigate the impact of inflation. The company also managed to reduce its total corporate costs from $1.33 billion in 2021 to $1.32 billion in 2022.

Summary

In summary, ADM demonstrated strong financial performance in the fiscal year ending December 31, 2022, with significant revenue growth driven by strategic acquisitions and robust demand for certain products. Despite facing challenges such as increased competition and inflation, the company's productivity initiatives and effective management of its tax affairs helped maintain profitability.

Source documents

Form 10-K  filed on Mar 12, 2024
129 pages scanned

Reference data

Company financials Q4 revenue 22.98B
Analyst estimates Q4 EPS missed by -11.28%
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