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ADM reports decline in Q1 2024 earnings

The decline, influenced by challenging global market conditions in crop protection and grains, also saw a significant drop in earnings per share.

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ADM reported a decrease in financial results for the first quarter ended March 31, 2024, with sales dropping 20 % to $7.4 billion and adjusted segment operating profit falling 24 % to $1.317 billion. The company cited challenging market conditions, notably in crop protection and grains, influenced by global supply chain complexities and reduced consumer spending power. Earnings per share on a GAAP basis also declined to $1.42, a 33% decrease compared to the previous year.

Despite the downturn, ADM's leadership remains focused on strategic initiatives to boost production efficiency and sustainability. This includes enhancing their Green Bison JV, expanding regenerative agriculture practices, and increasing efforts in BioSolutions. ADM also continues to pursue its accelerated share repurchase program to boost shareholder value.

Sector-specific results revealed significant declines in the Ag Services & Oilseeds and Nutrition segments. Ag Services & Oilseeds suffered from stabilized trade flows and a downturn in crush margins, while the Nutrition sector was hit by unplanned downtimes and a normalizing market for texturants.

In contrast, some positive developments included equity earnings from Wilmar improving by 37 % and strategic acquisitions, such as the purchase of Dafeng Seed, which enhanced ADM’s corn portfolio in China.

Looking ahead, ADM reaffirms its earnings guidance for the year, projecting adjusted earnings per share to range from $5.25 to $6.25. The company plans to continue its focus on operational 

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