Archer-Daniels-Midland Company reported fourth quarter earnings of $687 million. Here are some highlights from the report:
ADM’s Nutrition business delivered 24% year-over-year operating profit growth. “Our Nutrition business continued to harvest investments, lead in consumer growth trend areas, and partner with customers to deliver new products and solutions in 2020, driving 37% annual operating profit growth,” CEO Juan Luciano said in a press release. “Based on our current organic growth plans, we expect the Nutrition team to deliver solid revenue expansion and profit growth in 2021.”
Strength in plant proteins drove higher results in Specialty Ingredients, while Health & Wellness delivered higher sales in probiotics and natural health and nutrition. Animal Nutrition results were also significantly higher year-over-year.
The growth in this segment is a continuation of what was seen earlier in 2020. Back in its second quarter, ADM’s nutrition division gained 35% from a year earlier on strong sales of products such as probiotics, fibers, and plant-based proteins, reported Bloomberg.
“Healthy eating has significantly accelerated the purchase and consumption of alternative proteins,” said Luciano on a call with analysts. “A focus on nourishment and wellness is pushing microbiome solutions to the mainstream,” driven by COVID as “people think about more health and wellness and immunity concerns.”
AG SERVICES & OILSEEDS
Ag Services & Oilseeds achieved substantially higher profits year-over-year, setting a fourth quarter record for adjusted operating profit. This was driven by strong execution in North America, where the business capitalized on strong global demand—particularly from China.
Crushing delivered substantially stronger results versus the prior-year period, capturing significantly higher margins in all regions, driven by tight soybean supplies and strong global demand for both meal and vegetable oils.
Carbohydrate Solutions profits were also higher than a year ago, particularly Starches and Sweeteners, driven by lower net corn costs and intra-company insurance settlements.