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Sep 30, 2023
Andersons Q3 2023 Earnings Report
Reported mixed results with record renewables performance offset by currency losses and seasonal weakness.
Key Takeaways
The Andersons reported net income of $10 million, or $0.28 per diluted share, and adjusted net income of $5 million, or $0.13 per diluted share. Record pretax income in Renewables of $47 million was offset by Trade segment losses due to currency issues in Egypt. The company expects full-year adjusted EBITDA to achieve previous expectations of $350-$375 million.
Renewables reported record Q3 pretax income of $47 million.
Trade segment earnings were negatively impacted by a $19 million pretax loss in Egypt due to currency issues.
Nutrient & Industrial segment showed year-over-year improvements despite a seasonally slow period.
The company acquired ACJ International, a pet food ingredient supplier, which contributed positively to results.
Revenue by Segment
Forward Guidance
The company expects to achieve its previously communicated full-year adjusted EBITDA outlook of $350-$375 million.
Positive Outlook
- Ethanol crush margins are expected to remain strong.
- Assets are well-positioned to accumulate, condition, and store large quantities of grain.
- Expect drying income due to receipts of higher moisture corn.
- Trade is also receiving increased storage rates including Variable Storage Rates (VSR) in wheat.
- Merchandising focus will continue to be on serving customers and opportunistic arbitrage.
Challenges Ahead
- Currency liquidity issues being experienced by customers in Egypt.
- Rail service interruption impacted volumes for approximately one month.
- Economic conditions
- Weather conditions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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