The Andersons (NasdaqGS:ANDE) 2025 Investor Day December 09, 2025 09:00 AM ET Company ParticipantsWeston Heidi - EVP of AgribusinessPooran Sharma - Managing DirectorSarah Zibbel - Chief Human Resources OfficerBill Krueger - President and CEONone - Video NarratorBrian Valentine - CFOMark Simmons - EVP of the Renewables GroupMike Hoelter - VP, Corporate Controller and Investor RelationsConference Call ParticipantsBen Mayhew - VP and Ag/Protein Equity Research AnalystBen Klieve - Equity Research AnalystKristen ...

Core Insights - Guizhou Province has developed modern mountain agriculture with local characteristics over the past five years, achieving steady progress across various sectors [1][2] Agricultural Development - The province has strengthened its grain and major agricultural product supply capacity, transitioning from a net importer to a net exporter of live pigs, enhancing its role as an ecological shield for the Yangtze and Pearl Rivers [2] - Breakthroughs in decoding the whole genome of local species have advanced precision breeding, while innovations in pesticide development have reached world-class standards [3] - Technologies such as industrialized seedling cultivation, drone transport, and smart operations have become common in mountainous agriculture, contributing to high-quality agricultural development [3] Poverty Alleviation and Employment - Guizhou has emphasized industrial development and employment to consolidate gains in poverty alleviation, stimulating community internal drives [4] - Rural employment has remained stable through east-west collaboration mechanisms, support workshops, and public welfare job placements [4] - Continued efforts have been made to strengthen compulsory education, improve medical services, housing security, and access to safe drinking water in rural areas [4] Living Standards and Cultural Development - Living standards have improved, with visible enhancements in conditions in formerly impoverished areas, effectively preventing large-scale poverty relapse [5] - Guizhou, known as a "World Museum of Bridges," has made remarkable improvements in rural living environments, with grassroots cultural brands gaining international recognition [5] - Rural areas have evolved into a new frontier for economic growth, showcasing the province's rich cultural charm and demonstrating Chinese modernization [6]

Core Insights - AB Akola Group reported consolidated revenues of EUR 394 million for the first quarter of FY2025/2026, a 3% increase compared to the same period last year [1][3] - The Group's gross profit rose by 27% to EUR 56 million, while operating profit increased by 43% to EUR 27 million [2][3] - Net profit surged by 53% to nearly EUR 20 million, reflecting strong performance across various business segments [2][3] Financial Performance - Total trading volume increased by 7% year-on-year, reaching 791 thousand tons [2][3] - EBITDA for the quarter was EUR 36 million, a 34% increase from the previous year [2][3] - The revenue breakdown for the Partners for Farmers segment was EUR 275 million, with a gross profit of nearly EUR 30 million [4][7] Segment Analysis Partners for Farmers - Revenue decreased by 3% to EUR 274.7 million, but gross profit increased by 31.8% to EUR 29.6 million [7] - Operating profit rose by 51.2% to EUR 13.3 million, supported by a large Baltic harvest and the acquisition of SIA Elagro Trade [4][7] Food Production - Revenue increased by 15% to EUR 123 million, with gross profit of EUR 24 million [8][11] - Poultry operations remained stable, contributing to profitability despite market shifts [10][11] Farming - Revenue for the Farming segment was EUR 12 million, with a gross profit of EUR 1.5 million [12][15] - Crop production increased by 8.5%, with significant improvements in malting barley yields [13][14] Other Products and Services - Revenue grew by 15% to EUR 5.7 million, with a gross profit increase of 24.3% [18] - The veterinary pharmaceuticals business saw a 26% sales increase, while pest control revenues surged by 43% [16][18] Overall Group Performance - AB Akola Group is the largest agribusiness and food production group in the Baltics, with FY2024/2025 revenues of EUR 1.58 billion [18] - The Group sold 3.1 million tons of products, achieving a gross profit of EUR 194 million and a net profit of EUR 61 million [18]

Core Insights - Bunge Global SA reported third-quarter 2025 adjusted earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2.23, but reflecting a 1% year-over-year decline [1][10] - The company completed the acquisition of Viterra, enhancing its global network and agricultural capabilities, with net sales reaching $22.16 billion, a 71.6% increase from the previous year, although it fell short of the consensus estimate of $26.55 billion [2][10] Financial Performance - The cost of sales increased to $21 billion, up 74% year-over-year, while gross profit rose 38% to $1.06 billion [3] - Selling and administrative expenses were $678 million, a 55% increase year-over-year, leading to an operating profit of $403 million, down 1% from the prior year [3] - Adjusted total operating profit surged 54% year-over-year to $757 million, with total adjusted operating margin contracting by 40 basis points to 3.4% [4] Segment Performance - Soybean Processing and Refining: Sales increased 38% to $10.86 billion, with processed soybeans up 30% to 12,139 thousand metric tons, and adjusted operating profit rising 67% to $478 million [5] - Softseed Processing and Refining: Sales surged 130% to $3.66 billion, with processed volumes increasing to 3,124 thousand metric tons, and adjusted operating profit up 107% to $275 million [6] - Other Oilseeds Processing and Refining: Sales rose 13.4% to $1.2 billion, but adjusted operating profit fell 19% to $51 million due to mixed results across regions [7] - Grain Merchandising and Milling: Sales increased 168% to $6.43 billion, with volumes up 168.6% to 24,080 thousand metric tons, and adjusted operating profit rising 56% to $120 million [8][9] Cash Flow and Balance Sheet - Cash used in operating activities was $503 million in the first nine months of 2025, compared to an inflow of $847 million in the same period last year [11] - Cash and cash equivalents decreased to $1.3 billion from $3.3 billion at the end of 2024, while long-term debt rose to $9.8 billion from $4.7 billion [12] Outlook - Bunge Global maintains its 2025 adjusted EPS outlook in the range of $7.30-$7.60 [13] Stock Performance - Bunge Global's shares have gained 20.8% year-to-date, outperforming the industry, which has seen an 11% decline [14]

Industry Overview - U.S. Class I railroads are experiencing tepid growth with a 3% year-over-year decline in rail volumes for the week ending October 25, 2025, totaling 498,462 carloads and intermodal units moved, despite a 2% year-to-date increase [1] - North American rail volumes, including major U.S. players, averaged around 700,000 carloads over the trailing four-week period, showing a year-over-year dip while intermodal traffic, which constitutes 53% of total volume, experienced a 4% year-to-date gain but fell 4% in Week 43 [2] Commodity Performance - Grain volumes have increased by 7% year-to-date and 5% quarter-to-date, driven by strong U.S. exports amid global supply disruptions, with record soybean harvests reported by the U.S. Department of Agriculture [3] - Coal shipments showed mixed results, remaining flat weekly but down 3% quarter-to-date and up 4% year-to-date, reflecting earlier increases in domestic power plant usage, although recent declines indicate a cooling trend as natural gas prices stabilize [3] Automotive Sector Impact - North American automotive carloads decreased by 10% in Week 43, with a quarter-to-date increase of 2%, primarily due to a fire at Novelis' aluminum plant, which halted production and is expected to cost Ford an estimated 90,000-100,000 vehicles in Q4 [4] - Ford is increasing shifts at other plants to mitigate losses, while GM is facing lesser impacts; Eastern railroads anticipate Q4 pressure due to their proximity to affected auto plants, whereas Western railroads have maintained relative stability [4]

Key Concepts - The "Ag Coast of America" is a 15-mile section on the Mississippi River in St Louis, moving the highest amount of grain by barge [1] - Collaboration among rail, river, roads, and runways is crucial for global commerce in the St Louis region [4][5] - The St Louis area functions as an agricultural coast, transporting crops globally [4] Transportation Efficiency & Cost - Optimizing the journey of corn from farm to kitchen table across different modes of transportation is a key focus [12] - Improved transportation efficiency can stabilize costs, such as air conditioning units [14] - Introducing a new international flight path from St Louis to Europe lowered the cost of jogging shoes [16] - Streamlining the movement of crude oil and coal can lower utility bills and gas prices [19][20] Infrastructure & Investment - A $230 million rail bridge replacement project was prioritized by the barge industry to enhance competitiveness through combined barge and rail rates [21] - Prioritizing infrastructure projects requires considering the impact on various industries, such as the barge industry's need for a rail bridge [20][21]

Core Viewpoint - The article discusses the current sentiment in the precious metals market, particularly gold and silver, in light of recent CFTC data and macroeconomic factors, suggesting potential investment opportunities and risks based on market trends and geopolitical developments [2][23]. Group 1: Market Sentiment and Price Trends - The CFTC data is updated only until September 23 due to the U.S. government shutdown, showing a 3.2% drop in gold prices, ending a nine-week upward trend [2][23]. - Gold and silver prices are showing signs of weakness, with gold potentially forming a double top pattern [2][23]. - Gold mining stocks, including ETFs like GDX and GDXJ, have doubled in value compared to the end of last year, indicating strong performance in the sector [2][23]. Group 2: Future Price Predictions - If Trump can influence the Federal Reserve next year, gold prices may continue to rise, with the potential for significant price movements depending on U.S.-China trade discussions [2][23][24]. - A successful trade outcome could lead to further declines in gold and silver prices, possibly dropping below $4,000 [2][24]. - The article emphasizes that any market corrections in a bull market should be viewed as buying opportunities [2][24]. Group 3: CFTC Data Insights - As of September 23, net long positions in COMEX gold decreased by 1.1%, while silver saw an increase of 5.1% [2][5]. - The net long position in platinum increased by 24.8%, indicating a shift in market sentiment towards this metal [2][5]. - The article notes that the copper market has seen a shift from negative to positive net positions, reflecting changing investor sentiment [2][11]. Group 4: Economic Indicators and Predictions - The market anticipates a 96.7% chance of a 0.25% rate cut by the Federal Reserve on October 29, with expectations for further cuts in December and January [21][23]. - The article suggests that if inflation pressures rise alongside rate cuts, it could complicate the Federal Reserve's monetary policy decisions [29]. - The overall economic outlook for next year is expected to be weaker, with potential stagflation impacting commodity demand [27][29]. Group 5: Investment Strategies - The article highlights the importance of monitoring gold mining stocks as a leading indicator for gold prices, suggesting that a divergence between gold prices and mining stocks could signal caution [16][24]. - The gold-silver ratio is used as a measure of market sentiment, with the ratio currently at 84.612, indicating a slight increase in market fear [20][24]. - The article concludes that the current environment presents both risks and opportunities for investors in precious metals, particularly in light of geopolitical and economic developments [2][23][24].

Core Insights - Xinjiang has transformed from a "desert wasteland" to a "grain warehouse" with significant agricultural advancements [2] - The irrigated area has expanded from over 27 million mu in 1955 to over 95.2 million mu today, with total grain production increasing from 1.1 million tons at the founding of New China to 23.302 million tons in 2024 [2] - Xinjiang is the only province in China to achieve a cumulative grain increase of over 10 billion jin in three years, marking a historic shift from "internal balance" to "national supply" [2] Agricultural Development - The region's agricultural success is attributed to the efforts of "turning desert into arable land" and the implementation of "smart irrigation" technologies [2] - Advanced technologies such as intelligent sensor networks and drone clusters are now utilized for precise agricultural management, replacing traditional labor-intensive farming methods [2] - Xinjiang boasts an average of over 4 mu of arable land per capita and continues to expand its oasis areas, contributing to its status as a significant grain-producing region in the country [2]

Economic Overview - The U.S. economy is experiencing significant growth, with a reported 4% growth rate according to the Atlanta Fed, while global economic performance is lagging behind [2][4][10] - Commodity prices, including groceries, energy, and other essentials, are declining, indicating a potential deflationary trend despite expectations of tariff-induced inflation [1][2][4] Federal Reserve Policies - There is a call for a change in the Federal Reserve's management and operating framework to better align with the current economic conditions and support Main Street rather than just Wall Street [3][5][6] - The Fed's current policies are seen as counterproductive, contributing to stagflation, and there is a suggestion to lower the target interest rate from 4% to 2% to stimulate the housing market and overall economic activity [8][10] Government Policies Impact - The policies of the current administration are credited with driving economic growth and lowering prices, contrasting with the previous administration's approach [4][10][12] - A strong emphasis is placed on the need for coordination between government policies and the Federal Reserve to avoid conflicting objectives that could hinder economic progress [12]

Market Trends - Grain and oilseed futures experienced a decline on Tuesday due to profit-taking, partially reversing the gains made on Friday following the US Labor Day holiday [1]