ADM(US:ADM)2024-04-30 14:03Financial Performance - Reported EPS for Q1 2024 was $1.42, with adjusted EPS at $1.46, reflecting a decrease of 33% and 30% respectively compared to Q1 2023[1][5][7] - Adjusted net earnings for Q1 2024 were $750 million, compared to $1,151 million in Q1 2023, reflecting a year-over-year decline of 34.8%[38] - The company reported a net earnings attributable to ADM of $729 million in Q1 2024, down from $1,170 million in Q1 2023, a decline of 37.8%[30] - Adjusted net earnings for the quarter ended June 30, 2023, were $927 million, with a projected decrease to $821 million for the quarter ended September 30, 2023[41] - Net earnings attributable to ADM for the four quarters ended March 31, 2024, totaled $3,042 million[41] Segment Performance - Segment operating profit for Q1 2024 was $1,311 million, down 24% year-over-year, while adjusted segment operating profit was $1,317 million, also a 24% decrease[2][5][7] - The Ag Services & Oilseeds segment reported an operating profit of $864 million, a decline of 29% from the prior year, primarily due to lower trade flows and margins[10][11] - Carbohydrate Solutions segment operating profit was $248 million, down 11% year-over-year, with the Starches & Sweeteners subsegment decreasing by $52 million[12][13] - Nutrition segment operating profit fell to $84 million, a 39% decrease, with Human Nutrition subsegment profit down approximately $62 million[14][15] - Other segment operating profit increased by 25% to $121 million, driven by higher Captive Insurance results[16] Revenue and Profitability - Revenues for Q1 2024 were $21,847 million, down from $24,072 million in Q4 2023, representing a decrease of 9.2%[30] - Gross profit fell to $1,659 million in Q1 2024 from $2,080 million in Q4 2023, a decrease of 20.2%[30] - Segment operating profit decreased to $1,311 million in Q1 2024 from $1,719 million in Q4 2023, a decline of 23.7%[28] Capital and Investments - The trailing four-quarter average adjusted return on invested capital (ROIC) was 11.2%[2] - Total adjusted Return on Invested Capital (ROIC) for the trailing four quarters ended March 31, 2024, was 11.2%[43] - Total adjusted invested capital as of June 30, 2023, was $33,722 million, with a slight decrease to $33,633 million projected for September 30, 2023[42] Cash Flow and Expenses - Cash and cash equivalents decreased to $830 million as of March 31, 2024, down from $899 million a year earlier, a decline of 7.7%[32] - Operating working capital decreased to $10,181 million in Q1 2024 from $13,457 million in Q1 2023, a decrease of 24.4%[32] - Interest expense increased to $166 million in Q1 2024 from $147 million in Q4 2023, a rise of 12.9%[30] - Interest expense for the quarter ended June 30, 2023, was $124 million, with a projected decrease to $97 million for the quarter ended September 30, 2023[41] - Income tax expense for the quarter ended June 30, 2023, was $204 million, with a slight increase to $207 million projected for the quarter ended September 30, 2023[45] Strategic Initiatives - The company is focusing on strategic initiatives including production ramp-up at Green Bison JV and scaling regenerative agriculture efforts[3] - The company aims to enhance comparability of underlying business performance through the use of non-GAAP financial measures like adjusted net earnings and adjusted EBITDA[39] Other Notable Metrics - Total processed volumes increased to 13,794,000 metric tons in Q1 2024 from 13,021,000 metric tons in Q1 2023, an increase of 5.9%[36] - The company reported a total of $1,080 million in depreciation and amortization for the four quarters ended March 31, 2024[45] - Equity earnings from Wilmar increased by 37% to $149 million compared to the prior year[10][11] - Adjusted EBITDA for the quarter ended June 30, 2023, was $1,629 million, with a decrease to $1,491 million projected for the quarter ended September 30, 2023[46] - Total adjustments for net earnings in the quarter ended September 30, 2023, were $173 million, leading to net adjustments of $133 million[41]