ADM Q2 profits double, animal nutrition up on Neovia synergies
Net earnings rose to US$469m for the quarter ended June 30.
Its animal nutrition business was again higher year over year, noted ADM.
“Despite impacts from COVID-19 on demand in some regions, continued execution on Neovia synergies, robust demand for pet food and treats, and improvement in amino acids drove better results.”
The trader reported a strong performance for its agriculture services and oilseeds activities, the business was substantially better year over year.
“Strong execution in South America helped deliver record quarterly origination and export volumes in a significantly improved margin environment, driven by a weaker Brazilian Real and strong farmer selling. Global trade delivered another strong quarter, as countries looked to secure stable supplies of food amid the pandemic. Lower interior grain margins affected results in North America.
Crushing was lower versus the prior-year period. South America delivered significantly higher year-over-year results in an environment of solid domestic meal demand and the weaker Brazilian Real, said ADM. “In EMEAI, crush volumes and margins remained solid. In North America, margins were impacted by COVID-19 effects on customers.”
Wilmar results were lower year over year, however.
Commenting on the Q2 financials, ADM chairman and CEO, Juan Luciano, said:
“As we advance our strategy, we are increasingly seeing growing benefits flow to our bottom line. Our team is exceeding the targets we’ve set for those factors under our control, and as we look at the second half of the year, we’ll continue to advance our key focus areas: optimizing business performance, accelerating readiness – which has been critical to our resilience and agility this year – and harvesting the benefits of strategic growth investments, especially in our nutrition segment. We are in a strong position, with great momentum, and we are confident in our ability to continue to deliver strong earnings and returns in 2020 and beyond.”
