10-QPeriod: Q3 FY2021

Archer-Daniels-Midland Co Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 26, 2021For Securities:ADM

Summary

Archer-Daniels-Midland Co. (ADM) reported strong financial results for the third quarter and the first nine months of fiscal year 2021, showcasing significant year-over-year growth. Total revenues for the third quarter surged by 34% to $20.3 billion, driven by higher sales prices across all segments, particularly in Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. Net earnings attributable to controlling interests saw a substantial increase of 134% to $526 million for the quarter, and a remarkable 77% rise to $1.9 billion for the nine-month period. This performance reflects robust operational execution and favorable market conditions, including strong demand for vegetable oils, renewable diesel, and various nutrition products. ADM's strategic investments in innovation and productivity continue to yield positive results, positioning the company for sustained growth.

Financial Highlights

50 data points
Beta

Revenue

$20.34B

6.5% Gross Margin

Net Income

$526.00M

2.6% Net Margin

EPS (Diluted)

$0.93

Total Assets

$52.30B

Cash & Equivalents

$1.08B

Free Cash Flow

$2.56B

Financial Statements
Beta
Revenue$20.34B
Cost of Revenue$19.01B
Gross Profit$1.33B
SG&A Expenses$720.00M
Interest Expense$61.00M
Net Income$526.00M
EPS (Basic)$0.93
EPS (Diluted)$0.93
Shares Outstanding (Basic)564.00M
Shares Outstanding (Diluted)566.00M

Key Highlights

  • 1Third-quarter revenues increased by 34% to $20.3 billion, driven by higher sales prices across segments.
  • 2Net earnings attributable to controlling interests increased by 134% to $526 million in Q3 2021 compared to Q3 2020.
  • 3Nine-month net earnings attributable to controlling interests rose by 77% to $1.9 billion.
  • 4Ag Services and Oilseeds segment revenues grew by 36% year-over-year in Q3, supported by higher sales prices.
  • 5Carbohydrate Solutions segment revenues increased by 39% in Q3, driven by both higher prices and volumes.
  • 6Nutrition segment revenues saw a 17% increase in Q3, benefiting from strong demand in human and animal nutrition categories.
  • 7ADM continues to invest in strategic growth initiatives, including acquisitions in the Nutrition segment and plans for new processing facilities.

Frequently Asked Questions

ADM's revenue increased significantly to $20.3 billion in the third quarter, primarily due to higher sales prices for key commodities and products such as animal feed, alcohol, biodiesel, meal, oils, corn, and wheat. This was partially offset by a slight decrease in overall sales volumes.

All segments showed strong performance. Ag Services and Oilseeds revenues grew 36% due to higher prices. Carbohydrate Solutions revenues increased 39% driven by higher prices and volumes. Nutrition revenues rose 17% from strong demand in human and animal nutrition.

ADM is investing in its strategic growth pillars of Productivity and Innovation. This includes recent acquisitions in the Nutrition segment, plans for new soybean crushing facilities, and potential joint ventures in areas like lactic acid and sustainable aviation fuel. For 2021, the company anticipates capital expenditures between $0.9 billion and $1.0 billion, with approximately $0.8 billion for dividends and up to $0.5 billion for share repurchases.

Earnings before income taxes were positively impacted by strong segment operating profits across Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. These gains were partially offset by corporate charges, which included interest expenses, unallocated corporate costs, and debt extinguishment charges. The overall earnings before income taxes for the quarter increased to $653 million from $200 million in the prior year quarter.