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Mar 31, 2022
ADM Q1 2022 Earnings Report
ADM's Q1 2022 earnings were reported, with adjusted earnings per share of $1.90, reflecting strong performance driven by great execution, growth in Nutrition, effective risk management, and a tighter supply environment.
Key Takeaways
ADM reported strong Q1 2022 results, with adjusted earnings per share of $1.90. The company benefited from great execution, exceptional growth in Nutrition, effective risk management, a tighter supply environment, and robust demand. They expect 2022 results to exceed 2021's.
Q1 2022 EPS as reported was $1.86, including net charges related to impairments, restructuring, and settlement.
Ag Services & Oilseeds delivered substantially higher year-over-year results due to strong global demand and tight supply.
Nutrition delivered extremely strong revenue growth of 23% and maintained healthy margins.
Looking forward, ADM expects reduced crop supplies to drive continued tightness in global grain markets.
ADM
ADM
ADM Revenue by Segment
Revenue by Segment
Ag Services & Oilseeds Revenue
CapyFin.comCarbohydrate Solutions Revenue
CapyFin.comNutrition Revenue
CapyFin.comOther Business Revenue
CapyFin.com Forward Guidance
ADM expects 2022 results to exceed 2021's, driven by reduced crop supplies and enduring global trends fueling demand for their products.
Positive Outlook
- Reduced crop supplies are expected to drive continued tightness in global grain markets.
- Enduring global trends are fueling performance across ADM's portfolio by driving demand for their products.
- Productivity and innovation efforts are continuing to help ADM deliver on the evolving needs of its customers.
- ADM's team is executing well and managing risk effectively.
- Exceptional growth in Nutrition is contributing to strong performance.
Challenges Ahead
- Weak Canadian canola crop is contributing to reduced crop supplies.
- Short South American crops are contributing to reduced crop supplies.
- Disruptions in the Black Sea region are contributing to reduced crop supplies.
- North American origination margins and volumes were lower year over year, including approximately $75 million in negative timing effects, which will reverse in the coming quarters.
- Vantage Corn Processors delivered solid execution margins, but position losses on ethanol inventory as prices fell early in the quarter drove lower results versus the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income