ADM records challenging results for third quarter global activities
International ingredients and agricultural group ADM has recorded challenging financial results for the quarter, reporting quarterly operating profit of $758 million, against $881 million.
Revenues for the quarter were $16.7 billion as against $15.8 billion for the same period in 2018, against a backdrop of restructuring costs across its global businesses.
However, for its WFSI brand, the company reported that its results were significantly higher than the prior-year quarter, with growth across the portfolio. Higher sales and margins globally led to record quarterly results for Wild. In addition, within specialty ingredients, the protein business continued to expand amid the growing consumer market for alternative proteins.
The business, which develops a number of ingredients used within bakery and confectionery, said that there were also notable contributions from growth investments in bioactives and fibres benefited the Health & Wellness business. Its agricultural services and oilseeds business was said to be in line with expectations.
“We delivered solid third quarter results, consistent with the perspectives we provided last quarter, despite a difficult external environment,” explained chairman and CEO Juan Luciano. “We maintained our focus on serving our customers and advancing our strategic goals, and continued to realize the benefits of the actions that we took earlier this year.
“We are excited about our strategic growth activities, and particularly our participation and leadership in major global trends such as flexitarian diets, nutrition for health, and sustainable materials. We have invested in assets, platforms and technological capabilities to serve and grow with our customers, who are embracing these market-changing trends.
“While external conditions for certain businesses may remain fluid and potentially challenging in the near term, our growing leadership position in major global trends, and our strength in innovation, efficiency, and customer service, position us well for stronger results in 2020 and beyond.”
In total, the company presently has around 40,000 employees serving customers in nearly 200 countries. It has 450 crop procurement locations, and a total of 62 innovation centres.