ADM Q1 2022 Earnings Report
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
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ADM Revenue by Segment
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