ADM: Reports Q4 Earnings and Full-Year 2023 Results

Chicago / IL. (adm) ADM Group, former Archer Daniels Midland Company, reported financial results for the quarter and full year ended December 31, 2023. Board Chair and CEO Juan Luciano: «ADM’s results speak to the resiliency of our business. Supported by our unparalleled global footprint and capabilities, we delivered another solid year of execution. Our team continues to focus on delivering high-quality products and services for our customers and is driving our productivity and innovation agenda, while generating strong cash flows that allow us to accelerate the return of cash to our shareholders.»

Summary of Fourth Quarter and Full Year 2023

For the fourth quarter ended December 31, 2023, earnings per share on a GAAP basis was USD 1.06. Segment operating profit on a GAAP basis was USD 1,235 million and included net charges of USD 171 million, or approximately USD 0.30 per share, related to impairments and restructuring, net of a contingent loss reversal, and a gain of USD 7 million related to the sale of certain assets.

Adjusted segment operating profit was USD 1,399 million for the fourth quarter, a 16 percent decrease versus the prior year period. Adjusted earnings per share were USD 1.36. Lower pricing and execution margins led to a decline of USD 0.21 per share versus the prior year period, largely reflecting the impact of lower crush and origination margins. Improved manufacturing costs, primarily related to lower input and energy costs, led to an increase of USD 0.18 per share versus the prior year. Lower equity earnings and cycling one-time legal recovery benefits led to a USD 0.34 per share decrease in the fourth quarter of 2023 versus the prior year period. Unplanned downtime at Decatur complex also negatively impacted fourth quarter EPS.

For the full year, earnings per share on a GAAP basis was USD 6.43. Segment operating profit on a GAAP basis was USD 5,900 million and included net charges of USD 361 million or approximately USD 0.56 per share related to impairments and restructuring, net of a contingent loss reversal, and a gain of USD 17 million or approximately USD 0.03 per share related to the sale of certain assets.

Adjusted segment operating profit was USD 6,244 million for the full year, a 6 percent decrease versus the prior year. Adjusted earnings per share were USD 6.98. Improved pricing and positive mark to market timing impacts were a USD 0.77 per share benefit. Overall volume declined, resulting in a USD 0.29 per share reduction versus the prior year. Higher manufacturing costs, partially related to unplanned downtime at the Decatur complex, led to a USD 0.41 per share decrease versus the prior year. Increased corporate costs related to higher interest rates and 1ADM implementation, partially offset by higher ADMIS, drove a decrease of USD 0.30 per share versus the prior year. Lower equity earnings, primarily related to Wilmar, attributed a USD 0.46 per share decrease versus the prior year. Benefits from share repurchases of USD 0.26 were more than offset by negative impacts of USD 0.20 related to a higher adjusted income tax rate, and cycling one-time benefits from the legal recovery and Biofuel Producer Recovery Program.