Core Viewpoint - Admiral Group plc has appointed Paola Bonomo as an Independent Non-Executive Director effective from 12 May 2025, bringing extensive experience in strategy, digital technology, and transformation to the board [1][7]. Group 1: Experience and Background - Paola Bonomo has 14 years of experience in strategy consulting with McKinsey, focusing on technology and telecommunications [2]. - She has held operational leadership roles in digital at companies such as eBay, Vodafone, and Facebook, where she was the Global Marketing Solutions Regional Director for Southern Europe [2]. - Bonomo has served as a Non-Executive Director at AXA Assicurazioni S.p.A. from 2014 until April 2025, participating in various committees [3]. Group 2: Current Roles and Contributions - Currently, she is a Non-Executive Director at FAAC S.p.A. and Infrastrutture Wireless Italiane S.p.A. (INWIT), and serves as Vice Chair of Italian Angels for Growth [4]. - Bonomo has held recent Non-Executive Director roles at Telecom Italia, Crystal Peak Acquisition, and Piquadro S.p.A., with significant contributions in various committees [5]. Group 3: Educational Background - Paola Bonomo holds an MBA from the Stanford Graduate School of Business and a degree in business administration from Università Commerciale Luigi Bocconi, Italy [6]. Group 4: Strategic Importance - Mike Rogers, Chair of the Admiral Board, emphasized Bonomo's knowledge of the international financial services sector and her experience in digital transformation as valuable assets for the Group's strategy [7]. - Bonomo expressed her honor in joining Admiral and highlighted the company's focus on data to understand customer needs, aiming for long-term sustainable growth in the UK and Mainland Europe [8]. Group 5: Committee Involvement - Effective from 12 May 2025, Bonomo will join the Admiral Group Remuneration Committee, which will also include Karen Green (Chair), Justine Roberts, and Mike Brierley [8].

Group 1 - The article discusses the ongoing trade war, highlighting that while it is not completely resolved, China remains a significant player in trade deals [1] - The author emphasizes the complexities and uncertainties surrounding the trade deal, indicating that the situation is fluid and requires close monitoring [1] Group 2 - The author has a background in private credit and commercial real estate financing, which may provide insights into investment opportunities in these sectors [1] - The author has experience working with prominent commercial real estate developers, suggesting a strong understanding of the industry dynamics [1]

Financial Performance - Revenues for Q1 2025 were $20,175 million, a decrease of 7.7% compared to $21,847 million in Q1 2024[13] - Gross profit for Q1 2025 was $1,180 million, down 29% from $1,659 million in Q1 2024[13] - Net earnings attributable to Archer-Daniels-Midland Company were $295 million, a decline of 59.6% from $729 million in the same quarter last year[13] - Basic earnings per share decreased to $0.61 in Q1 2025 from $1.42 in Q1 2024, representing a drop of 57.3%[13] - Total comprehensive income attributable to Archer-Daniels-Midland Company was $175 million in Q1 2025, down from $646 million in Q1 2024[14] - Other income - net for the three months ended March 31, 2025, was $(19) million, a decrease from $(26) million in the same period in 2024[152] - The company reported a total asset impairment, exit, and restructuring costs of $38 million for the three months ended March 31, 2025, compared to $18 million in the same period of 2024[176] Assets and Liabilities - Total current assets increased slightly to $27,882 million as of March 31, 2025, compared to $27,718 million at the end of 2024[16] - Cash and cash equivalents rose to $864 million from $611 million at the end of 2024, an increase of 41.3%[16] - As of March 31, 2025, total cash, cash equivalents, restricted cash, and restricted cash equivalents amounted to $4,056 million, a decrease from $4,845 million as of March 31, 2024[29] - The fair value of total assets as of March 31, 2025, was $10,308 million, with inventories carried at market valued at $7,021 million[72] - The fair value of the Company's long-term debt was $7.2 billion as of March 31, 2025, compared to a carrying value of $7.6 billion[134] - The Company had lines of credit totaling $12.4 billion as of March 31, 2025, with $7.6 billion remaining unused[135] Segment Performance - The Ag Services and Oilseeds segment generated $17,219 million in total revenues, contributing significantly to the overall revenue[55] - The Carbohydrate Solutions segment reported revenues of $2,683 million, with starches and sweeteners accounting for $2,156 million[55] - The Nutrition segment achieved total revenues of $1,836 million, with human and animal nutrition contributing $964 million and $872 million, respectively[55] - Segment operating profit for the Ag Services and Oilseeds segment was $412 million, Carbohydrate Solutions was $240 million, and Nutrition was $95 million, totaling $747 million in segment operating profit[162] - The company’s operations are organized into three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition, with each segment evaluated based on operating profit[153] Cash Flow and Investments - Net cash used in operating activities was $(342) million in Q1 2025, compared to $700 million provided in Q1 2024[18] - Capital expenditures for Q1 2025 were $291 million, down from $328 million in Q1 2024[18] - The Company’s investment in Wilmar International Limited had a carrying value of $3.6 billion as of March 31, 2025, with a market value of $3.5 billion[41] - The Company executed cross-currency swaps with an aggregate notional amount of $411 million and foreign exchange forwards totaling $2.4 billion as of March 31, 2025[122] Shareholder Returns - The company paid dividends of $0.51 per share in Q1 2025, slightly up from $0.50 per share in Q1 2024[13] - The Company had approximately 235.7 million shares of common stock in treasury, valued at $4.8 billion as of March 31, 2025[140] - The Company has a share repurchase program with 115 million shares remaining to be repurchased until December 31, 2029[145] Restructuring and Cost Management - The company announced a restructuring program expected to deliver over $500 million in cost savings by fiscal 2029, with restructuring charges of $23 million in Q1 2025[179] - A restructuring program announced on February 4, 2025, is expected to deliver over $500 million in annual cost savings by fiscal 2029 through various initiatives[205] - The Company intends to prioritize operational excellence and targeted cost reductions, including optimizing operating leverage within the Nutrition segment[202] Legal and Regulatory Matters - The Company is facing multiple class action lawsuits alleging damages between approximately $500 million to over $2.0 billion due to alleged price manipulation in ethanol derivatives[190] - The Company is under investigation by the SEC and DOJ regarding intersegment sales, and it is cooperating with these investigations[192][206] - The Company has identified a material weakness in its internal control over financial reporting related to segment disclosures[207] Market and Economic Conditions - The Company operates in approximately 78 countries, with local currencies as functional currencies for most subsidiaries, impacting revenue and expense translations[210] - The Nutrition segment's revenue changes may not correlate with cost changes, making margin rates a key performance indicator[209] - The Company aims to enhance returns on invested capital through strategic simplification and targeted growth investments[202]

Core Insights - Archer Daniels Midland Company (ADM) reported mixed first-quarter 2025 results, with adjusted earnings per share of 70 cents surpassing the Zacks Consensus Estimate of 69 cents, but revenues fell short of expectations [1][2][3] Financial Performance - Adjusted earnings decreased from $1.46 per share in the year-ago quarter to 70 cents, while reported earnings fell from $1.42 to 61 cents [2][3] - Revenues declined 7.3% year over year to $20.2 billion, missing the consensus estimate of $20.7 billion, impacted by lower revenues across all segments [3][4] - Gross profit decreased 29.4% year over year to $1.2 billion, with gross margin falling 190 basis points to 5.9% [5] Segment Performance - Ag Services & Oilseeds revenues fell 9% year over year to $15.7 billion, while Carbohydrate Solutions revenues decreased 6.2% to $2.6 billion, and Nutrition revenues dipped 1% to $1.8 billion [4] - Adjusted operating profit for Ag Services & Oilseeds plunged 52% year over year to $412 million, affected by lower volumes and margins due to tariff and trade policy uncertainty [6] - Crushing subsegment's operating profit dropped 85% year over year, influenced by lower margins and increased manufacturing costs [7] - Carbohydrate Solutions segment's operating profit dipped 3% to $240 million, with mixed performance across subsegments [9] - Nutrition segment reported an adjusted operating profit of $95 million, up 13% year over year, driven by improvements in Flavors and Animal Nutrition [10] Other Financials - As of March 31, 2025, ADM had cash and cash equivalents of $864 million, long-term debt of $8.3 billion, and shareholders' equity of $22.1 billion [12] - The company used $342 million in cash for operating activities and paid dividends of $247 million in the reported quarter [12] Future Outlook - For 2025, management anticipates adjusted earnings per share to be in the range of $4 to $4.75, with expectations leaning towards the lower end [13]

Group 1 - The article discusses the concept of "Dividend Kings," which are stocks that have increased their dividends for 50 or more consecutive years [1] - The source of the information is The Motley Fool and SureDividend, which regularly update their lists of Dividend Kings [1] Group 2 - The article encourages readers to subscribe to The Dividend Dogcatcher for more information and updates related to dividend stocks [2] - It highlights a live video series called the Underdog Daily Dividend Show, which features potential portfolio candidates [2]

Economic Overview - The U.S. trade deficit reached a record low of -$140.5 billion in March, surpassing the previous estimate of -$137.6 billion and the revised prior record of -$123.2 billion [2] - The trade deficit metric has been consistently reported since 1992, indicating ongoing trade challenges [3] Company Earnings Reports - DoorDash (DASH) reported Q1 earnings of 44 cents per share, beating estimates by 10%, but revenues of $3.03 billion fell short by nearly 2%. The company announced acquisitions of Deliveroo for $3.9 billion and SevenRooms for $1.2 billion [3] - Archer-Daniels-Midland (ADM) reported earnings of 70 cents per share, slightly beating estimates but significantly lower than the $1.46 per share from the previous year. Revenues of $20.18 billion missed expectations by 2.5% [4] - Marriott International (MAR) reported Q1 earnings of $2.32 per share, exceeding estimates by 5 cents, with revenues of $6.26 billion, which was slightly below expectations but an increase from $5.98 billion a year ago [5] Market Expectations - The Federal Open Market Committee (FOMC) meeting is underway, with no expected changes to the Fed funds rate, which has been stable in the 4.25-4.50% range since December [6][7] - The U.S. dollar has shown some instability due to new global trade realities, but bond yields remain stable, indicating no immediate pressure for rate changes [8] Upcoming Earnings Reports - Upcoming earnings reports include Advanced Micro Devices (AMD), Electronic Arts (EA), and Wynn Resorts (WYNN), with The Walt Disney Company (DIS) reporting the following day [9]

Core Insights - Archer Daniels Midland (ADM) reported a revenue of $20.18 billion for the quarter ended March 2025, which is a decrease of 7.7% compared to the same period last year [1] - The earnings per share (EPS) for the quarter was $0.70, down from $1.46 in the year-ago quarter, with a surprise of +1.45% against the consensus estimate of $0.69 [1] Financial Performance - The reported revenue fell short of the Zacks Consensus Estimate of $20.69 billion, resulting in a surprise of -2.51% [1] - ADM's stock has returned +10.5% over the past month, compared to the Zacks S&P 500 composite's +11.5% change, indicating a performance in line with the broader market [3] Segment Performance - Processed volumes for Oilseeds were reported at 9,091 Kmt, slightly below the average estimate of 9,152.33 Kmt [4] - Revenue from Carbohydrate Solutions was $2.57 billion, compared to the estimated $2.70 billion, reflecting a -4.2% change year-over-year [4] - Revenue from Ag Services and Oilseeds was $15.68 billion, below the average estimate of $16.07 billion, representing a -9% year-over-year change [4] - Nutrition segment revenue was $1.82 billion, slightly below the estimated $1.85 billion, with a -1% change compared to the previous year [4] - Adjusted segment operating profit for Carbohydrate Solutions was $240 million, exceeding the average estimate of $224.98 million [4] - Adjusted segment operating profit for Nutrition was $95 million, significantly higher than the average estimate of $43.30 million [4] - Adjusted segment operating profit for Ag Services and Oilseeds was $412 million, below the average estimate of $454.27 million [4]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.70 and total segment operating profit of $747 million for the quarter [4] - The trailing fourth quarter adjusted return on invested capital (ROIC) was 7% and cash flow from operations before working capital changes was $439 million [4][22] - The first quarter results were aligned with market expectations despite a dynamic external environment [5] Business Line Data and Key Metrics Changes - The Carbohydrate Solutions segment operating profit was $240 million, down 3% year-over-year [18] - The Nutrition segment revenues were $1.8 billion, down 1% year-over-year, while operating profit increased by 13% to $95 million [20][21] - The Ag Services and Oilseeds segment operating profit was $412 million, down 52% compared to the prior year quarter [13] Market Data and Key Metrics Changes - The Ag Services sub-segment operating profit was $159 million, down 31% year-over-year, primarily due to lower North American origination export volumes [14] - The crushing sub-segment saw operating profit drop to $47 million, down 85% year-over-year, with significant declines in global soybean and canola crush margins [15] - Equity earnings from the company's investment in Wilmar were $72 million, down 52% compared to the prior year quarter [18] Company Strategy and Development Direction - The company is focused on a self-help agenda aimed at delivering cost savings of $500 million to $750 million over the next three to five years [7] - Strategic decisions include the closure of the Cursea, South Carolina crush facility and the exit from domestic trading operations in China and Dubai [8] - The company is investing in automation and digitization across its global manufacturing network to improve efficiency and reliability [9] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half outlook for crush margin improvement due to current domestic crush replacement margins being below expectations [23] - The company remains confident in its ability to navigate the uncertain external landscape and is focused on operational performance and cost management [26][28] - Management highlighted the importance of clarity on Renewable Volume Obligations (RVOs) to support strong U.S. demand for crop-based vegetable oils [31] Other Important Information - The company returned $247 million to shareholders in the form of dividends during the quarter [22] - The Decatur East facility is expected to be fully operational by the end of the second quarter, with an anticipated impact of $25 million per quarter for Nutrition once fully ramped up [97] Q&A Session Summary Question: Expectations for RVO and its influence on 2025 outlook - Management indicated that strong RVOs are crucial for the biofuel outlook and expect margins to improve in the second half of the year [37][39] Question: Specific RVO numbers and positive outcomes for ADM - Management mentioned that the industry is looking for around €25 billion in biomass-based biodiesel and conventional biodiesel to support internal consumption and export markets [47][49] Question: Clarification on RPO performance despite a weak environment - Management acknowledged that RPO margins are expected to be significantly lower compared to the prior year due to various market pressures [55] Question: Impact of tariffs and trade flow shifts - Management noted that the impact of tariffs has not been significant in Q1, with most products exempt from export tariffs to Mexico and Canada [60][62] Question: Signs of rationalization in the soy crush industry - Management stated that while they cannot speculate on others, they are actively managing their own capacity and expect some plant shutdowns in response to demand [68] Question: Commercialization of Argentine crops - Management expects Argentine farmers to begin regular commercialization of crops as they take advantage of tax benefits before they expire [76] Question: Volume growth expectations for Starches and Sweeteners - Management reiterated that overall demand remains solid, but there are pockets of weakness, particularly in Europe and exports to Mexico [80]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.70 and total segment operating profit of $747 million for the quarter [5] - Trailing fourth quarter adjusted return on invested capital (ROIC) was 7% and cash flow from operations before working capital changes was $439 million [5][24] - Overall cash flow from operations decreased compared to the prior quarter due to lower total segment operating profit [24] Business Line Data and Key Metrics Changes - The Carbohydrate Solutions segment operating profit was $240 million, down 3% year-over-year [20] - The Nutrition segment revenues were $1.8 billion, down 1% year-over-year, while operating profit increased by 13% to $95 million [22][23] - The Ag Services and Oilseeds segment operating profit was $412 million, down 52% compared to the prior year quarter [16] Market Data and Key Metrics Changes - The Ag Services sub-segment operating profit was $159 million, down 31% due to lower North American origination export volumes [17] - Global trade results were lower compared to the same quarter last year, largely due to negative timing impacts [17] - Equity earnings from the company's investment in Wilmar were $72 million, down 52% compared to the prior year quarter [20] Company Strategy and Development Direction - The company is focused on cost savings of $500 million to $750 million over the next three to five years, including workforce reductions and a review of third-party consulting spend [9] - Strategic decisions include the closure of the Cursea, South Carolina crush facility and the exit from domestic trading operations in China and Dubai [10] - The company is advancing automation and digitization across its global manufacturing network to improve reliability and efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to navigate an uncertain external landscape while focusing on execution and cost management [12][31] - The company remains cautious about the second half outlook for crush margin improvement due to current domestic crush replacement margins being below expectations [26] - Management highlighted the importance of clarity on Renewable Volume Obligations (RVOs) to support strong U.S. demand for crop-based vegetable oils [34] Other Important Information - The company returned $247 million to shareholders in the form of dividends during the quarter [25] - The Decatur East facility is expected to be fully operational by the end of the second quarter, with an anticipated impact of $25 million per quarter for Nutrition once fully operational [99] Q&A Session Summary Question: Expectations for RVO and its impact on 2025 outlook - Management indicated that strong RVOs are crucial for the biofuel outlook and expect margins to improve in the second half of the year [40][41] Question: Specific RVO numbers and positive outcomes for ADM - Management mentioned that the industry requires approximately €25 billion in biomass-based biodiesel and conventional biodiesel to support internal consumption and export markets [51][52] Question: Strength in RPO despite a weak environment - Management acknowledged that while RPO was better in the short run, overall expectations remain lower due to biodiesel margin pressures and increased refining capacity [58][59] Question: Trade flow shifts and impact of tariffs - Management noted that the impact of tariffs has not been significant in Q1, with most products exempt from export tariffs to Mexico and Canada [64][66] Question: Signs of rationalization in the soy crush industry - Management speculated that the industry may see plant shutdowns when demand is low, but emphasized the importance of clarity on RPO mandates for future capacity [73][74] Question: Commercialization of Argentine crops - Management expects Argentine farmers to become more regular in commercializing crops as they take advantage of government tax benefits before they expire [79] Question: Volume growth expectations for Starches and Sweeteners - Management reiterated guidance for slightly lower volumes than last year, with some weakness noted in specific markets [82][84] Question: Ethanol margins and performance - Management highlighted good risk management in ethanol operations, with expectations for margins to improve over the year [90] Question: Contribution from Decatur once fully operational - Management confirmed that the Decatur plant's impact will be felt in the second half of the year, with an expected contribution of $25 million per quarter [99]

Core Insights - Archer Daniels Midland (ADM) reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, but down from $1.46 per share a year ago, indicating a significant year-over-year decline [1] - The company posted revenues of $20.18 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.51% and down from $21.85 billion year-over-year, reflecting ongoing challenges in revenue generation [2] - ADM shares have underperformed the market, losing about 6% since the beginning of the year compared to the S&P 500's decline of 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $22.84 billion, while for the current fiscal year, the estimate is $4.16 on revenues of $87.87 billion [7] - The estimate revisions trend for ADM is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Agriculture - Operations industry, to which ADM belongs, is currently in the top 31% of over 250 Zacks industries, indicating a relatively strong position within the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]