Summary
Archer-Daniels-Midland Company (ADM) demonstrated strong financial performance in its fiscal year 2021, with a significant increase in net earnings attributable to controlling interests, reaching $2.7 billion, a 53% rise from the previous year. This growth was driven by robust demand across its key segments, particularly Ag Services and Oilseeds, and Carbohydrate Solutions, benefiting from higher sales prices and volumes. ADM's strategic focus on innovation and productivity, with a commitment to sustainability, continues to shape its business, evidenced by strategic acquisitions and joint ventures aimed at expanding its nutrition and renewable product offerings. The company's operational resilience was tested by factors like adverse weather impacting North American oilseed processing and supply chain disruptions, but it navigated these challenges effectively. ADM's financial health remains solid, with strong cash flow from operations and prudent management of its debt. The company is actively investing in future growth, including capital expenditures for facility upgrades and new plants, signaling confidence in its long-term strategy and ability to adapt to evolving market demands.
Financial Highlights
55 data points| Revenue | $85.25B |
| Cost of Revenue | $79.26B |
| Gross Profit | $5.99B |
| R&D Expenses | $171.00M |
| SG&A Expenses | $2.99B |
| Interest Expense | $265.00M |
| Net Income | $2.71B |
| EPS (Basic) | $4.80 |
| EPS (Diluted) | $4.79 |
| Shares Outstanding (Basic) | 564.00M |
| Shares Outstanding (Diluted) | 566.00M |
Key Highlights
- 1Net earnings attributable to controlling interests increased by 53% to $2.7 billion in fiscal year 2021, driven by higher sales prices across segments.
- 2Segment operating profit saw a 34% increase, reaching $4.6 billion, with Ag Services and Oilseeds and Carbohydrate Solutions showing significant improvements.
- 3ADM completed several strategic acquisitions in its Nutrition segment, including PetDine, Deerland Probiotics & Enzymes, and Sojaprotein, bolstering its capabilities in human and animal nutrition.
- 4The company announced plans for a new soybean crushing plant and refinery in North Dakota, expected to open in 2023, to meet growing demand for renewable diesel.
- 5Cash provided by operating activities significantly improved, totaling $6.6 billion in 2021, compared to a use of $2.4 billion in 2020, reflecting enhanced operational efficiency and market conditions.
- 6ADM continues to invest in sustainability initiatives, with its 'Strive 35' plan aiming for significant reductions in greenhouse gas emissions by 2035.
- 7The company's financial position remains strong, with shareholders' equity at $22.5 billion and a manageable debt-to-capital ratio of 26% as of December 31, 2021.