US agricultural commodities trading company Archer Daniels Midland (ADM) posted net income of US$ 712 million, or US$ 1.26 per share, in the second quarter of the year, the company said on Tuesday, 27th. The result represents an increase of 51.8% compared to the US$ 469 million, or US$ 0.84 per share, registered in the same period of the previous year. This was the first year-on-year profit increase since Q3 2018. According to ADM, there were record gains, with strong year-over-year profit growth across all three business units.
“With our excellent start to the year and the expectation of continued momentum in the second half, we are confident of delivering very strong results for the full year and we remain well positioned for robust and sustained growth in the coming years,” says the company.
In adjusted terms, earnings were $1.33 per share, well above the expectation of analysts surveyed by FactSet of $1.03 a share. Revenue rose 41% to $22.93 billion, beating analysts’ expectations of $18.42 billion. This is the seventh consecutive quarter that ADM has reported growth in adjusted operating income.
Revenue from the Agricultural and Oilseed Services Division, which covers the purchase, transport and storage of agricultural products, as well as processing of soybeans and other oilseeds, increased 40% in the second quarter from the same period last year, to US$570 million. The division’s good performance was attributed to record origination and export volumes, driven by corn sales to China. South American origination, in turn, was influenced by slow sales by producers and high commodity prices, ADM said in a statement.
ADM further reported that results were significantly higher than the same period last year, supported by continued recovery in food service as well as positive effects in North America, partially offset by reduced biodiesel mandates in Brazil .
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