Animal nutrition helps deliver record Q2 earnings for ADM

Table of Contents Animal nutrition revenue buoyant ​Acquisition of non-GMO ingredients producer ​Carbon capture  Yesterday saw ADM release its financial results for the quarter ending June 30. It reported Q2 net earnings of US$712m and adjusted net earnings of US$754m.  “It was yet another excellent quarter for ADM, as our […]

Yesterday saw ADM release its financial results for the quarter ending June 30. It reported Q2 net earnings of US$712m and adjusted net earnings of US$754m. 

“It was yet another excellent quarter for ADM, as our team delivered record earnings, with strong year-over-year profit growth across all three business units,”​ said CEO, Juan Luciano.

“This is a very different ADM than even a few short years ago,”​ he added.

The agribusiness group’s soybean crushing operations are benefiting from strong vegetable oil demand and North American margins, he said. Results were partially offset by weaker soybean crush margins in South America though.

“We are very optimistic about the prospects for crush for the rest of the year and into next year. Margins remain exceptionally strong in North America in the US$45-50 range. There is a strong vegetable oil demand; we see recovery in food service and more reopening of the economy, and that continues to enhance the oil share of the crush contribution. Also, the tightening supplies in logistical issues in South America are allowing US soybean meal to be a little bit more competitive in global markets,”​ said the CEO on a conference call with analysts yesterday, where he also noted consolidation in the global soy crush industry. 

Soybean meal demand has gone lower in China, he said. “The herd is going through a rebalancing there, and, at the moment, there is a lot of wheat feed being fed,”​ acknowledged Luciano.

ADM, though, expects higher inclusion levels of corn and soybean meal in feed formulations in China in the coming period.

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