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Dec 31, 2023
ADM Q4 2023 Earnings Report
ADM reported a decrease in earnings for Q4 2023, impacted by lower margins and unplanned downtime, while announcing a new share repurchase program.
Key Takeaways
ADM's Q4 2023 earnings were lower compared to the previous year, with a decrease in adjusted segment operating profit and adjusted EPS. The decline was attributed to lower pricing and execution margins, lower equity earnings, and unplanned downtime, partially offset by improved manufacturing costs.
GAAP EPS was $1.06, down 42% compared to Q4 2022.
Adjusted EPS was $1.36, a 30% decrease compared to the prior year period.
Segment operating profit was $1,235 million, a 23% decrease year-over-year.
Adjusted segment operating profit was $1,399 million, down 16% from Q4 2022.
ADM
ADM
ADM Revenue by Segment
Revenue by Segment
Ag Services & Oilseeds Revenue
CapyFin.comCarbohydrate Solutions Revenue
CapyFin.comNutrition Revenue
CapyFin.com Forward Guidance
ADM expects adjusted earnings per share in the range of $5.25 to $6.25 for the full year 2024, reflecting moderating margin conditions and higher costs offsetting improved volumes.
Positive Outlook
- Global grain and oilseed supply is expected to increase.
- Strong volumes and lower energy costs are anticipated to support margin expansion in starches and sweeteners.
- Nutrition segment is expected to see mid single digit revenue growth.
- Operating income is expected to be higher in Nutrition versus 2023.
- Vegetable oil demand growth from renewable diesel and low single digit soybean meal demand growth to support structural margin improvement.
Challenges Ahead
- Moderating margin conditions are expected.
- Higher costs are anticipated.
- Global soybean crush margin will decline in 2024.
- Milling margins are expected to be lower.
- Ethanol margins are expected to be lower.
Revenue & Expenses
Visualization of income flow from segment revenue to net income