ADM beat expectations in Q1 2023, posting a net income of $1.17 billion, up from $1.05 billion in Q1 2022. ADM Chairman and Chief Executive Officer Juan Luciano said the continued strong performance in the first quarter demonstrates ADM’s unique ability to deliver results through a rapidly evolving external environment. It also showcases the team’s agility in responding to opportunities that leverage the company’s unparalleled global footprint and capabilities, he added.

“Our broad portfolio continues to serve diverse global food, feed and industrial markets and creates compelling value for our customers and our shareholders.”

Q1 2023 Earnings Per Share (EPS) as reported of $2.12 includes a $0.01 per share charge related to impairments and restructuring; a $0.01 per share gain related to the mark-to-market adjustment on the Wilmar exchangeable bond; and a $0.03 per share tax benefit related to certain discrete items. Adjusted EPS, which excludes these items, was $2.09.

Luciano pointed out that ADM’s integrated value chain has helped each of its business segments deliver strong earnings in the quarter. “Our foundational businesses in Ag Services & Oilseeds and Carbohydrate Solutions both continue to manage market volatility and deliver strong margins across the value chain. We continue to see healthy pipeline growth and win rates in Human Nutrition that support our confidence in the earnings growth in the Nutrition segment, even as we navigate temporary challenges, particularly in parts of Animal Nutrition.”

With a strong balance sheet and healthy cash flows, Luciano said ADM is poised to continue investing in profitable growth.

Ag Services & Oilseeds results significantly higher

Results showed Ag Services results were much higher than the first quarter of 2022. In South American origination, excellent risk management and higher export demand due to the record Brazilian soybean crop drove significantly higher year-over-year results. Results for North America origination were also higher, driven by stronger soybean exports. In Global Trade, solid margins and efficient execution led to strong results.

Crushing results were in line with the first quarter last year. In North America, the team executed well, capitalizing on historically strong soybean and softseed crush margins that were supported by robust demand for renewable fuels. In EMEA, crush margins were lower year-over-year as trade flows adjusted from the dislocations caused last year by the war in Ukraine. Additionally, there were approximately $240 million of positive timing effects in the quarter, including positive impacts from declining crush margins at the end of the period.

Refined Products and Other results were substantially higher than the prior-year period. North America biodiesel results were higher with record volumes and strong margins, supported by favorable blend economics and tight diesel stocks. In EMEA, domestic demand for food oil and export demand for biodiesel drove strong margins.

Equity earnings from Wilmar were lower versus the first quarter of 2022.

Carbohydrate Solutions delivered solid results in Q1, though lower than the very strong first quarter of the prior year.

The Starches and Sweeteners subsegment capitalized on solid demand in the quarter. North America starches and sweeteners delivered strong volumes and margins. Ethanol margins, pressured by high industry stock levels, were down relative to the same quarter last year. In EMEA, the team effectively managed margins in a dynamic operating environment to deliver improved results. The global wheat milling business posted much higher margins driven by robust customer demand.

Vantage Corn Processors results were significantly lower due to weaker ethanol margins.

Nutrition results significantly lower

ADM reported that Human Nutrition results were in line with the first quarter of 2022, as the business continued to manage demand fulfillment challenges and destocking in certain categories. Flavors results were slightly lower than the prior year as strong results in EMEA were offset by lower results in North America. Specialty Ingredients results were higher year-over-year driven by healthy margins. Health & Wellness results were lower year-over-year.

Animal Nutrition results were significantly lower compared to the same quarter last year, primarily due to much lower margins in amino acids.

Other Business results were significantly higher than the prior-year quarter due to improved ADM Investor Services earnings on higher interest income. Captive insurance results were in line with the prior year.