Archer-Daniels-Midland Company (NYSE:ADM) reported Q2 FY23 sales of $25.19 billion, missing the consensus of $25.90 billion.
Revenues from Ag Services and Oilseeds fell by 7% Y/Y, Carbohydrate Solutions declined by 10% Y/Y, and Nutrition fell by 7% Y/Y.
Gross profit declined 10% Y/Y to $1.88 billion, with margin contracted 20 basis points to 7.5%.
Adjusted EPS of $1.89, beating the analyst consensus of $1.60.
The company held $1.43 billion in cash and equivalents as of June 30, 2023.
In H1 2023, the company repurchased $1 billion of shares.
Juan Luciano, Chairman and CEO, said, “Ag Services & Oilseeds leveraged recent investments in infrastructure and operations to achieve record origination volumes in Brazil, while Carbohydrate Solutions delivered excellent results across global starches and sweeteners. Nutrition achieved strong results in Flavors and drove continued expansion of the customer base and opportunity pipeline, while actively addressing softer demand within other parts of the segment.”
“We continued to make progress advancing our strategic initiatives connected to decarbonization, which are helping us build additional earnings power and growth for ADM. Based on our strong first-half results, increased confidence in second-half performance, and our team’s demonstrated ability to execute, we are raising our earnings expectations for full-year 2023.”
Price Action: ADM shares are trading higher by 0.73% at $83.72 on the last check Tuesday.
