ADM records results uptick despite global market uncertainties
The ADM group, which delivers a range of sweeteners and industry solutions for confectionery, snacks and across the food sector has reported a strong performance across its group for the quarter, recording $469 million in net earnings against $235m for the same period last year.
Revenues across the entire business remained consistent with last year, reaching $16.3 billion, with the figure only fractionally higher for the second quarter in 2019, as the company seeks to gain momentum amid challenging coronavirus-impacted markets.
The company has produced a number of confectionery applications including starches, which it has enhanced over recent years, including producing product series targeting the gummy sweets market, among many others.
As the business noted, its performance was boosted by notable results in South America that helped deliver record quarterly performance for the region and export volumes in a significantly improved margin environment, driven by a weaker Brazilian Real and strong farmer selling. Global trade delivered another strong quarter, as countries looked to secure stable supplies of food amid the pandemic. Lower interior grain margins affected results in North America.
However, according to the business, starches and sweeteners was lower year over year. Results were impacted by lower food service demand in North America and mark-to-market losses on corn oil contracts, partially offset by lower net raw material costs and strong risk management results. Wheat milling had another strong quarter, as solid retail demand and footprint optimisation initiatives continued to drive results.
“This was another strong quarter for ADM. I am proud of our team’s excellent work, as their execution of our strategy continued to deliver results,” said chairman and CEO Juan Luciano. “Through good and challenging times alike, we have kept a strong and steady focus on transforming and improving our company. Thanks to that work, and thanks to the ADM colleagues who have gone above and beyond to support our customers and the global food supply chain, we are delivering on our purpose by providing high quality nutrition around the world.
“We’re also living up to our ideals,” Luciano continued. “From our ambitious new sustainability goals, to the continued expansion of products and services to meet evolving consumer needs, to the critical efforts we are all making to protect our employees and support our communities during challenging times, our team is making a positive impact.
“As we advance our strategy, we are increasingly seeing growing benefits flow to our bottom line. Our team is exceeding the targets we’ve set for those factors under our control, and as we look at the second half of the year, we’ll continue to advance our key focus areas: optimizing business performance, accelerating Readiness – which has been critical to our resilience and agility this year – and harvesting the benefits of strategic growth investments, especially in our Nutrition segment. We are in a strong position, with great momentum, and we are confident in our ability to continue to deliver strong earnings and returns in 2020 and beyond.”