ADM Strengthening Focus on Sustainability and Innovation in Q4 Results

Archer Daniels Midland (ADM) reported strong financial results for the fourth quarter of 2022, with full-year adjusted earnings per share (EPS) of $7.85 and segment operating profit of $6.6 billion. In addition, the company’s trailing four-quarter average adjusted return on invested capital (ROIC) was 13.6%.

“ADM delivered another solid quarter to conclude an exceptional year, and the strategic work we have accomplished throughout 2022 has placed us well for 2023 and beyond,” said Chairman and CEO Juan Luciano.

ADM generated cash from operations before working capital of $5.3 billion and returned $2.3 billion to shareholders through dividends and share repurchases. This represents the company’s 50th consecutive year of dividend increases, with the quarterly dividend being raised by 12.5% to $0.45 per share.

The company is focusing on controllable actions to mitigate the impact of market forces and investing in the decarbonization of production facilities and new food technology platforms. These efforts are aimed at ensuring long-term growth and profitability for the company.

The Ag Services & Oilseeds segment delivered substantially higher results than the prior year. In comparison, the Carbohydrate Solutions segment saw substantially lower results year over year. The Nutrition segment, on the other hand, saw a revenue boost of 7% for the quarter and 11% on a constant currency basis.

“The company is focusing on controllable actions to mitigate the impact of market forces and investing in the decarbonization of some of its extensive production facilities and new food technology platforms. We aim to improve global capabilities and address evolving consumer preferences and longer-term food security needs. They will continue to return cash to shareholders and announced a 12.5% increase in quarterly dividends, the 50th consecutive year of dividend increases,” commented the Chairman and CEO of ADM

Overall, ADM’s strong financial performance in the fourth quarter of 2022 is a testament to the company’s ability to navigate the challenges of the market and make strategic investments in growth areas. In addition, the company’s commitment to returning value to shareholders through dividends and share repurchases, along with its focus on sustainability and innovation, positions it well for continued success in the future.

Photo by Samson on Unsplash