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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

ADM Posts Q3 FY 2022 Financial Results


In an October 25th release, Archer-Daniels-Midland Corp. (ADM) posted financial results for the 3rd quarter of fiscal 2022. This Company can be regarded as a bellwether for ‘Mega-Ag’ and the commodities sector. Along with competitors Bunge, Cargill, Cofco and Dreyfus, all are subject to the risks of currency fluctuation, geopolitical events, climatic extremes, and increased cost of ingredients, labor and transport in a competitive world environment still restrained by COVID.


For the 3rd Quarter of FY 2022 ending September 30th, net income was $1,031 million on total revenue of $24,683 million.  Comparable figures for the 3rd quarter of fiscal 2021 ending September 30th 2021 were net income of $526 million on total revenue of $20,340 million. Diluted EPS rose from $0.93 for the 3rd quarter of fiscal 2021 to $1.83 for the most recent quarter.


The report noted  “Animal Nutrition results were down versus the prior-year quarter. Pet results were lower in Latin America on lower volumes, partially offset by strong volumes and margins in North America. Softer animal protein demand affected feed volumes” For the 3rd Quarter the Animal Nutrition segment generated $31 million in operating profit out of a combined total of $1,559 million for all segments.


In commenting on results, Chairman and CEO Juan Luciano stated “I’m proud of our team for delivering yet another quarter of strong results by supporting the global food system and providing needed nutrition to billions,” said Chairman and CEO Juan Luciano. “Global demand remains robust, and our adjusted EPS of $1.86 is a reflection of our team’s expertise in managing dynamic market conditions, as well as the unique benefits of our integrated global value chain and our product portfolio”.


Luciano added “Today’s ADM is a resilient company, with a broad global footprint and an array of innovative capabilities that are driving performance for customers, consumers and shareholders. And with strong cash flows, we’re advancing productivity initiatives to enhance cost efficiencies and returns; driving innovation efforts to build new capabilities and growth engines across all of our businesses; and continuing to return capital to our shareholders. We’re well positioned to end 2022 strong, and carry that momentum into 2023.”


On September 30th 2022, ADM posted assets of $36,437 million of which $6,364 million comprised goodwill and intangibles, against long-term debt of $8,559 million. The Company had an intraday market capitalization of $52,630 million on November 3rd. ADM trades with a forward P/E of 14.8 and has ranged over a 52-week period from $61.80 to $98.88 with a 50-day moving average of $87.77.  Twelve-month trailing operating margin was 4.3 percent and profit margin 4.2 percent.  Return on assets over the past twelve months was 4.8 percent and the return on equity 17.8 percent.

Copyright © 2023 Simon M. Shane