ADM ingredients and solutions group records strong final quarter

US-headquartered ADM ingredients and solutions group, which delivers a wide range of sweeteners for confectionery markets, has recorded a strong final quarter of 2020, amid ongoing pandemic challenges, writes Neill Barston.

It reported earnings of $17.98 billion for the year’s final period ending December 31, 2020, up on earnings of $16.3 billion for the same point the previous year, backed by net figures of $693 compared with $499 million in 2019.

The international agri-services business explained there had been a strong sense of resilience across its global activities, which have expanded into areas including nutrition, health and wellness based products in recent years.

According to the firm, its starches and sweeteners achieved significantly higher results ($229 million) versus the prior-year period, driven by lower net corn costs and intra-company insurance settlements. Earnings were partially offset by lower results from corn oil and wet mill ethanol margins.

“I want to thank our team, which performed exceptionally well during truly unprecedented times to deliver four straight quarters of year-over-year adjusted segment operating profit growth in 2020, along with solid returns and record full-year adjusted EPS of $3.59,” said Chairman and CEO Juan Luciano. “

“Around the globe, ADM colleagues demonstrated their resourcefulness, creativity and commitment by keeping our work environment safe from COVID-19, maintaining our operations and serving our customers. The team delivered on our strategic objectives, maintained a solid balance sheet, managed a wide variety of risks superbly, and showed the strength of our diversified and global value chain.

“Our Ag Services and Oilseeds team delivered outstanding results in 2020, crossing the $2 billion profit mark by capitalising on our unparalleled and flexible global footprint to meet strong demand. With continued strong global demand for grains and oilseeds as well as meal and oils, we are confident in another outstanding performance from Ag Services & Oilseeds in 2021, he explained, adding that its nutrition business had also produced strong results, providing a lead in consumer growth trend areas, that resulted in a number of new products being developed.

Notably, its flavours operations also reportedly delivered a strong quarter, driven by sales and product mix in North America and EMEAI. Continued strength in plant proteins drove higher results in Specialty Ingredients. Health & Wellness delivered higher sales in probiotics and natural health and nutrition.

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