Archer Daniels Midland Co. reported its fourth quarter and full-year 2024 financial results, revealing a challenging year marked by softer market conditions and policy uncertainties. The company announced targeted actions to reduce costs and increase its quarterly dividend amid expectations of continued market pressures in 2025.
Key highlights from the report include:
Financial performance:
- Full-year 2024 adjusted earnings per share of $4.74, down 32% from 2023
- Total segment operating profit of $4.2 billion, a 28% decrease from the previous year
- Cash flows from operations before working capital of $3.3 billion, compared to $4.7 billion in 2023
Segment performance:
- Ag Services & Oilseeds segment saw a 40% decline in operating profit to $2.4 billion
- Carbohydrate Solutions segment remained flat at $1.4 billion
- Nutrition segment experienced a 10% decrease to $386 million
Cost-saving initiatives:
- Announced targeted actions to deliver $500 million to $750 million in cost savings over the next 3-5 years
- Plans include improvements in manufacturing costs, reduction in purchased materials and services, and a targeted workforce reduction of 600-700 roles globally in 2025
Dividend increase:
- Board of Directors declared a cash dividend of 51.0 cents per share, up from 50.0 cents
- Marks ADM's 93rd consecutive year of uninterrupted dividends
2025 outlook:
- Expects adjusted earnings per share in the range of $4.00 to $4.75
- Projection reflects weaker market fundamentals and ongoing biofuel and trade policy uncertainty
ADM's Chairman and CEO Juan Luciano commented on the results and outlook: "With softer market conditions and policy uncertainty around the world going into 2025, we are focused on improving our operational performance, accelerating costs savings, and simplifying our portfolio."
The company's proactive approach to cost reduction and operational efficiency comes as it faces ongoing challenges in global agricultural markets. Despite the headwinds, ADM remains committed to its long-term growth strategy and continues to prioritize shareholder returns, as evidenced by the dividend increase.
