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Dec 31, 2023
Andersons Q4 2023 Earnings Report
Reported record results, driven by strong performance in Renewables and Trade segments.
Key Takeaways
The Andersons, Inc. reported strong Q4 2023 results, with net income from continuing operations attributable to The Andersons of $51 million, or $1.49 per diluted share, and $55 million, or $1.59 per diluted share, on an adjusted basis. Renewables had an excellent quarter with record ethanol production and strong corn to ethanol yields. Trade also performed well due to strong elevation margins in core grain assets.
Reported net income from continuing operations attributable to The Andersons of $51 million, or $1.49 per diluted share.
Adjusted net income from continuing operations attributable to The Andersons was $55 million, or $1.59 per diluted share.
EBITDA was $131 million for the quarter, and adjusted EBITDA was $135 million.
Renewables reported record pretax income of $60 million.
Revenue by Segment
Forward Guidance
The company acknowledges a shift in fundamentals of the commodity markets with increased global stocks. They are actively pursuing opportunities for growth in the Renewables space, including carbon reduction plans and increased renewable diesel feedstock merchandising.
Positive Outlook
- Mix of North American storage and ethanol production assets positions the company well to benefit from market shifts.
- Good results from recent investments in ingredients supplied for pet and human consumption.
- Actively pursuing opportunities for growth in the Renewables space, including carbon reduction plans and increased renewable diesel feedstock merchandising.
- Robust pipeline of opportunities that include both investment in facilities and M&A.
- Strong balance sheet to support growth.
Challenges Ahead
- Acknowledge a shift in fundamentals of the commodity markets with increased global stocks.
- Spot ethanol crush margins have softened into 2024.
- Co-product values are facing headwinds as weaker corn prices are expected to compress feed values.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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