Trailing 4-Quarter Average Adjusted Return on Invested Capital (ROIC): 11.2%
Operating Cash Flow Before Working Capital: $900 million
Decrease in Adjusted Segment Operating Profit: 24% versus the prior year
Ag Services and Oilseeds (AS&O) Operating Profit: $864 million
Carbohydrate Solutions Segment Operating Profit: $248 million
Nutrition Segment Operating Profit: $84 million
Other Segment Operating Profit: $121 million, up 25% compared to the prior year
Future Guidance
Full Year EPS Guidance: Unchanged from initial 2024 planning assumptions despite the first-quarter results
Corporate Net Interest Expense Guidance: Increased from approximately $500 million to approximately $525 million for 2024
Global Soy Crush Margin Expectation: Anticipated to moderate within a range of $35 per metric ton to $60 per metric ton
Q2 2024 Expectation for AS&O: Significantly lower versus prior year levels, with global soy crush margin towards the lower end of the guided range
Q2 2024 Expectation for Carbohydrate Solutions: Higher versus prior year, driven by solid demand and margins in North American Starches and Sweeteners
Q2 2024 Expectation for Nutrition: Lower versus prior year due to headwinds in Specialty Ingredients, with anticipated sequential improvement
Capital Expenditure Alignment: Expected to be in line with depreciation and amortization, focusing on asset performance reliability through modernization and digitalization efforts
Trends, Market Conditions, Sentiment
Market Conditions: Acknowledgement of pressure on margins due to an anticipated buildup of grain and oilseed supply
Sustainability Trends: Increased focus on sustainability with ADM setting a revised goal to increase its regenerative agriculture acreage to 5 million by 2025
Operational Efficiency: Emphasis on driving structural earnings, ROIC, and cash flow generation amid market headwinds
Nutrition Recovery: Initiatives in place aiming for recovery in the Nutrition business segment with expected improvement in the latter half of the year
Shareholder Returns: Continued commitment to returning cash to shareholders, highlighted by the repurchase of over 20 million shares
Overall Sentiment: Confidence in navigating the current market challenges and delivering in line with expectations for 2024, despite a cautious outlook due to increasing global supply and moderating commodity prices
Notable Quotes
Juan Luciano on ADM’s agility and focus: “Our teams are looking for every opportunity to manage what we can control, remaining nimble to adjust quickly to external circumstances while advancing our strategy.”
Ismael Roig on financial guidance: “Our first quarter results were largely in line with expectations, and in turn, our 2024 planning assumptions and EPS guidance remain unchanged.”
Juan Luciano on operational channels and market outlook: “Our teams are continuing to improve execution excellence across our strategic and operational priorities… Through the differentiation and evolution of our business models… we have confidence in our outlook for the full year.”
