Archer-Daniels-Midland (ADM) 25 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to the ADM First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today’s call, Megan Britt, Vice President, Investor Relations for ADM. Ms. Britt, you may begin.

Bailey. you, Thank to welcome quarter webcast earnings Hello, the ADM. for and first webcast replay available a tomorrow, will of website. Starting Relations this be Investor on our

Slide to turn Please X.

of SEC statements economic circumstances, forward-looking conditions, company assumptions may current provided concerning Some and financial subject and those are industry and to and results. based and differ reflect file risks many additional has information These are ADM views on to in future that that materials management’s constitute could of factors estimates with in performance that uncertainties. comments the assumptions factors our results cause reports its and and statements materials on this actual presentation. from materially

update or statements new any result of extent events. future a forward-looking ADM the To under to applicable as information permitted law, obligation assumes no

On market and today’s Juan on the discuss our Executive ADM’s and quarter our Luciano, priorities backdrop the on share will Officer, perspective webcast, results, highlights strategic provide Chairman first current year. Chief our for progress

Chief drivers some at he of will and allocation our review remarks, and results. will have then Vikram Financial questions. your closing take the Juan review capital and performance segment level will the Luthar, and financial Officer, Our cash our generation Vikram

I’ll Please over turn to call X. the now Slide turn to Juan.

And joining Megan. us for thanks those you, to all Thank the call today.

and of reported This billion adjusted fourth an trailing with $X.XX, share segment average first adjusted XX%. morning, profit adjusted per strong $X.X a ADM earnings ROIC quarter operating of quarter of

respond opportunities to trends security, sustainability. Along integrated well-being chain once health Our enduring and the uniquely to of broad again portfolio. aligned to the ability and performance with value three food and advantage ADM’s of the team’s demonstrates nimbly

shifts are Ukraine. in ongoing environment global a in in the war and this being demand pressures, fluid recessionary of effects economic All trade from and and both felt activity inflationary ripple was where achieved

at customers’ and for team Our challenges consistency, and ways our these innovation to every our business to above units. turn meet needs find continues across quality rise

we wrapped growth track plans balance our We alignment and with allocation and shareholder XXXX opportunities are on a capital pursue cash flows, continue disciplined growth increase our and have strong in for returns to strategic QX with up framework. and we sheet, healthy long-term

several which we quarter, postbiotics our production the increases strategy, in global announced of a also first and facility and exciting the continued our milestones in This factor including growth world’s Spain, Valencia, production capacity five. opening probiotic of by innovation

BrightFit pave agreement microbiome from meat [ph] advance Agreements our Meats the and agenda. to gut Nebraska cell-based in with complex innovations for with and Tallgrass carbon way partners, decarbonization definitive furthering our And ADM ventures, Columbus, capture to Believer respectively. ADM’s

award the Ethisphere an we for companies. one financial Companies proud culture the consecutive of It’s success. one the to the ADM’s world’s that of it of to receive demonstrate ethical as Most And our recognized highlights engine be honor and are are quarter, financial our operational to fourth Fortune’s XXth externally behind the Admired to running. and and most continues named year be people Beyond

review to it please. the QX’s XXXX provide we in brief look we framing in few discussed the X, like and Slide of back I’d a on updates. context As quarter, the call

our full in supply Sea supply will team crop solid underpinned same XXXX, factors to a of origins and with global constraints record shape providing have driving both resurgence severe these of the in we footprint. and situation that Brazilian the our post drought in the transportation several of advantage continue Argentina, lockdown throughout demand demand and fundamentally in region, our demand and Supply take the supply. China Black allowed alongside and year. The some January, outlook the performance In products shift normalization confident reviewed factors our for to remains

are we Broad-based and solid vegetable milling. food demand volumes did, oils, flavors, seeing And we wheat starches strong remains sweeteners, resilient across and margins key across operating geographies.

Demand and crush strong is facility capacity biofuel Spiritwood, day additional margins. XXX,XXX our robust, like diesel the to the for demand time scheduled strong new The driving and our gross online bushels continued renewable growth green supports per in in for for North investment XXXX from harvest. biodiesel continued Dakota come expectation

growth Nutrition’s to human year trajectory the a in remains pipeline on in XXXX. with course increase nutrition compared point for our double-digit this

some back expect we lower in in beverage, to be in of the the and we growth last manage we noted, fulfillment As year, broader the half weighted acids margins to discussed amino quarter. through significantly as destocking the demand challenges this impacts

recognize results remain to position that the evolving macroeconomic to and to continues principles us well environment. innovation apply QX conditions. important dynamic a delivered our productivity despite agile and ability constantly external in strong team It’s ADM’s of

Let is dig decarbonization how me applying deeper into of growth. are paths we across us take examples helping the moment how to playbook and productivity for both our innovation organization and a find

perspective, have helping deliver of focus reducing that to and attention delivering our are usage, most we automation And complete yield Automation many reliability, is are of of their assets we supporting of Eight on impacts key us we the facilities. currently automation productivity within automation years. Slide operational the operations scale only not savings plans chemicals enterprise underway at next accelerates our following the manufacturing we our X, Whether a has it expect our footprint, continued improvements please. financial will operational immediately implementation. and these significant modernization or operational improvements From implementation a now most critical plan program our by seeing are several cost to over year-end. across level.

SEDA Our generating few we from proceeds. months, most in first expect to see [ph] dollars the these just Rapeseed confirming the efficiencies millions of in implementation returns double-digit is already in recent

businesses maintains identifying is rate drive the maintaining at a opportunities the growth. whole, is ADM the year example while given Each This external agility a to are levels and of ensure facilities of approximately a than with As functions the XX in to significant the is on undertaking operating over are next when impact seven scale, million one $XXX implementations per complete profit efficiency we more measures target on uncertainty of only years. of productivity at focus our environment. run

Our us continues decarbonization to allowing rapid action. in pace a showcase innovation at move and to journey is

advantaged demand for to Our cycle that prepared in us and has alternative the across continues diesel. position fuels biodiesel rise production renewable

We continue to convert fuel. into sustainable explore aviation ethanol strategic options to

today. The scale our the at multibillion why the critical is dollar highlights significant in represented is Decatur than are low-carbon the prioritizing to This what value. addressable exponentially decarbonization SAF step first alone unlocking of feedstocks opportunity by of criticality available as a we complex access higher

decade. of that just more value triple their CCS about first, customers than wells the think more how would are supplying and plants to the facility next we feedstocks that defining chain. our ADM sequestered successfully tons phase is and this year. of our This as we plan decarbonization emissions the up. carbon sequestration, been beginning. are to per in low-carbon Last Decatur extending speak up to as ability built we wrap million the And a electricity. be year, COX the own area leverages power a capture positions This supply sequester ADM we seven of COX complex, ultra-low announced pioneering a clear I’ll and in we processing one with number Decatur of metric accelerate adjacent with with leader in world’s low is has ADM to emissions and world-class the that and for a expertise steam

to Now the over I our Vikram? Vikram call turn would business like to to talk performance. about

were start an the results. soybean Slide were Services execution drove outstanding year-over-year in XXXX. risk South you, & also solid Thank results. to XXXX, higher and much team In first Oilseeds higher America, The In and Juan. X. strong origination Services had excellent trade, the stronger Please results year-over-year exports. quarter results significantly management American higher, In Ag higher origination, record than turn export North Ag with significantly due margins to higher of demand efficient results by led driven to global crop soybean Brazilian to QX.

line strong war robust that team the trade well, North adjusted in by crush dislocations crush were first for in quarter America, and by caused on margins with softseed margins year-over-year last from In were Ukraine. the year. In the demand EMEA, fuels. lower as results historically supported soybean were last year the renewable executed capitalizing flows Crushing

million included as well the prior business forward substantially Additionally, there positive at of results about effects the which declined positive timing quarter, crush the of during a end $XXX Refined of pulled were reversals expected than other prior executed products $XXX both from periods million period. quarter. were margins as future approximately as higher year the we of and as the impact losses timing

for biodiesel the EMEA, from results and export supported tight strong America with for Equity and first margins. food, by demand quarter and lower North blend economics favorable of versus diesel were Wilmar margins, biodiesel volumes oil XXXX. were In record domestic demand strong stocks. earnings drove higher

continue RPO current margins. ahead Looking Crushing significant lower impacted based trade volatility prior for to year We to is Services. expected on its and the that but Ag reoccur energy expect to not be grain second do than flows strong, last crush year’s strong the quarter, expect we performance. in

the year. year. on results. increasing quarter. solid levels, EMEA, posted by ethanol global X, significantly pressured and trajectory effectively first the Ethanol to with robust margins demand. to In the Starches Slide stock high margins, subsegment same very delivered the Solutions in of and business due weaker than volumes industry results capitalized prior quarter The driven please. Corn margins Sweeteners its Carbohydrate over down year-over-year. lower last strong on continued strong demand Vantage quarter wheat QX, XX% improved The by to America the relative in were margins. managed a delivered environment results though solid dynamic and higher BioSolutions team Starches North were Processors’ revenues lower Sweeteners margins. in strong milling deliver operating growth much customer by

and our and in note, the margins, are for will $XX we expected repeat. Of for below remain also benefit Ethanol demand year. from credit that biofuel while last strong expect quarter, resilient prior ahead, the products. margins producer million to tax Sweeteners a improving, second year Looking not recognized a we Starches quarter

lower Nutrition significantly fulfillment North record higher in EMEA lower Health were margins. categories. quarter. and manage were continued America. quarter in Flavors versus first lower prior was with were offset as year-over-year strong driven results business the were to Specialty in year year-over-year. results the by results certain destocking and healthy On the demand Ingredients the challenges line year-over-year, lower results of by slightly Human results Wellness were Slide Nutrition in prior X, results year than as XXXX

In results challenging year, quarter over conditions is due in the the go-to-market our customer-centric year, lower and significantly amino demand were actions expected footprint, lower with the impact. our excluding last taking mitigate The business, a EMEA margins strongest Animal acids. growth course optimizing Animal to to primarily of face resources actions refining more include PET, same are in Nutrition production compared Nutrition, to categories. much to our targeted particularly and reductions, strategy the These refocusing we on cost approach,

Looking the margins acid will from year-over-year prior quarter, ahead for expect the lapping Human profit growth Nutrition, amino at second still be Animal Nutrition higher the year. while we

For demand effects, fulfillment and the plus currency profit full Nutrition. and achieve about sales Nutrition by led operating continued optimistic opportunities. Nutrition, Human constant reduced XX% to growth destocking expect remain we in And in we with our year, Human pipeline growth recovery

noted we the to weighted year. operating be the will heavily of before, half growth second As profit

billion income. in significantly Captive year. Other were investor please. were the due year. unfavorable Ventures, financing X, currency ADM Corporate, was corporate absence corporate Slide $XXX ADM results to project still We and prior services interest of to improved costs. than the partially million year-over-year the excellence the due higher of investment of versus Other year the year corporate were offset prior In approximately to from centers $X.X unallocated quarter be foreign to costs by with on costs earnings an higher due insurance revaluation line prior results higher contribution gain, higher hedges. primarily higher business for

XX%, the to due The of Net prior in rate effective short-term line approximately interest XXXX interest for expense primarily $XX the rates. tax year-over-year quarter with million quarter higher for first increased the year. was

our the For effective we tax to rate still XX% year, expect XX%. between and full be

billion. first share shareholders Next as cash and We million $X.X slide, to $XXX capital of through strong expenditures please. million had working quarter, as In allocated returned flows we well the repurchases dividends. $XXX operating to before capital

X.X is billion We available And net leverage our continue $XX credit. X.Xx our nearly of with to debt-to-EBITDA cash ample of below have adjusted and ratio liquidity well threshold.

single sheet to A Our strong capital a strategic balance credit initiatives, stable for shareholders. while rating financial pursue provide and to ADM also our returning growth footing

opportunistic of $X.X Juan? subject uses buybacks of anticipate $X of and still expenditures In we XXXX, capital billion to billion other capital. strategic

you, Thank Vikram.

positioning about and next I into how to the how thinking Before remainder we XXXX take wrap up company insights we some phase opportunities. on are we're of the share today, to of wanted the

that our integrated support to able despite of of demand. confident are XXXX plans Supply will year are allowing our soft ADM shift pockets to flex demand some We results. and be value deliver strong of on another chain, in ADM for

from multiple to fuels, We industrial care continue to with proteins, sustainable agreements major regenerative personal advance industries alternative to to players partnership and products. across agriculture plant-based

All rates of as at see environment new external this partnerships from like pace product are these double-digit supporting capture evolve accelerated to emerging grow at the upsides we biosolutions ADM We areas growth year. expected to opportunities. again with

in And agenda we're value online our within multiple complex, customers year forward across across production near-term businesses which and support our broad-based unlocking growth. is continued Decatur the to three industries. the have decarbonization demand both driving our long-range for We coming significant capacity

event of to combination opportunities our the for community and the We're shareholders months. to ahead a core phase deliver to and fourth anticipating in-depth of of continue expect sheet the quarter. we share business the the on cash opportunities business, in path the position, on see in we next earnings We'll solid value pursue will review $X share deliver opportunities we along coming based in to that positioning growth. chain, the details near-term both more per to in and of value while strength growth the balance with an With our strong we its investment in performance this ADM between $X XXXX be with able across

your answering time look Thank you forward any I for today, and have. Vikram to you questions may

please line open Bailey, the questions. that, for With

Instructions] today Please question [Operator Morgan. comes go line Our Tom. you. Thank ahead, from of from the JP Palmer first Tom

is Your now open. line

thank you question. and morning Good the for

Good morning, Tom.

about the maybe earnings on year, ask this how to cadence – thinking ask sub-segment. Wanted you're crushing in

your the the second lately several of also in U.S. dipped presentation in can So points margins year. of stronger earnings have the right, notes, to see, we soybean but regions curve crush features margins half world, the

should the then So first of looking for looking the half quarter quarter we bit year at potential for better the industry perhaps below coming might maybe bounce you a is the a just, quarter in be second second second and suggest? than the curves or

but quarter a raise lower expected as from to year. as will margins remain said, in strong, lower right, little period, the assessment that right crush crush coming crush Remember your than Vikram you part covering profits based as impact then you're maybe that think $XXX million I second In second the before. of mark-to-market pull will mentioned the bit the quarter, prior come QX. those well for and margins year is that on into

while probably remain So lower than margins crush canola will but the in look the year margins prior solid, be to improved again, upside.

the think lack are that's to up, the have market what the margins while beans Argentina South will in Tom, in being have Argentina. remain position exported given think for where America which pick curves any XXXX the year not Argentina crush strong hard that of you is Likewise, for may business their run later year, is time, fundamentals cover and dislocations crush and driving the the significant increased and that demand meal crop, by probably influenced may whole the and at new another small point will the showing. be changes XXXX, structural in In And will strong crushing world. Remember If both certainly about of from of remember, extremely for dislocations that around year. U.S. or vegetable oil XXXX, we out meal. happen. that's will We the now, are

production, world coming we soybean that own think to are going global to end Russians with point at at our coming record gain I have will Spiritwood going the online in going are we Ukraine we inclusions and So also. in Paraguay And also expect meal side, QX. soybean – have the a to have and we're in of back on also

due So very, XXXX. strong a strong ag think volumes we oilseeds and and services for and are year refining you very higher this margins improvements when about in operational refining in

Bailey, questions? other any

from comes line you. ahead. go the Please The of Sachs. next question Goldman Hi. Thank Samuelson today from Adam

Your open. is line now

Yes, thank you. morning, Good everyone.

Adam. morning, Good

hoping Hi. more maybe to as bit the little bit the nutrition talk it color little get a more was on the and profits kind I confidence of on and a you see of year. recovery through

make costs of just human comps getting I'm sure and to challenges understand function Sounds side price like heavily easy the the of skewed of some I chain year. trying kind is pretty and last late of guess, how and that's the flapping towards that much a supply I

beneficial and of seeing Actual in animal and you're new the as can versus on the growth the think volume us on in your bear kind capacity from bring the side, acids some growth of market the businesses? help of and about to some you the legacy well that then pet amino pressures

Yes, Adam.

QX we is in that is to the first to no and going going weak call. had second We be different is clearly the this from what half. nutrition the in strength come So signaled indicated the half

let's of are pipeline nutrition, So and capabilities we've human actually given our more we ingredients. our got strengths, In a and as to that looking innovation, strong for and down. plays it customers and our more suite mentioned, broad break

and So see we double-digit pipeline, increase increasing very win robust a in rates. pipeline

levels. one. fulfillment is the then challenges, half demand destocking levels last to two relate regular neutralize, of back So And third Point the we should effects that which inventory in expect that's is back come number point the year. mainly to number experienced we you also

that. are We through working

of to second issues resolved year. these of half in We need to be expect this most the

well loaded confidence back challenges growth have second strong the in nutrition. We'll of quarter. pipeline, less as still gives a and less for demand very a half fulfillment human destocking, as So combination growth us

We in expect quarter. maybe single-digit mid second growth the

the QX, growth So flat should back challenged half back progress can the you fulfillment. demand and half roughly be see QX, of single-digit significantly was year, mid versus which by the last in in higher

the in in challenges to double-digit growth remember, nutrition pipeline, demand that on be still pet animal Then we we side, on continue strong also have we signal fulfillment you so if see pet. category

second mainly also come course are half, half this expect be capacity we year, for the also new in pet. expecting second to of to the addressed that We the over in some online

about good pretty feel we So pet.

On the QX, amino significant QX and last QX, had because that's in we been also animal of contribution challenged acids from nutrition side, year.

are So so take it's to time be to back why we lapping margins, half loaded. going going those it's and that's

also going We while are lower. in are actions value see protein, to reformulation be anticipated, weakness flat at demand volume generally from as protein slightly to looking we feed customers higher are value is consumers and taking feed lower but

to very, margins go-to-market We improve well are actions very targeted working I that and actions by as referenced. cost as

about back animal good half on from perspective. feel So a we the nutrition turnaround

for feel about nutrition constant So up for that's the and I nutrition in XXXX. a XX% good strong OP shaping to currency cited, reasons reason second is but why the plus growth be the we half story

comes question from the The Please today line Ben. from next go of ahead, Ben Theurer Barclays.

Your line now is open.

very you the Thank Juan, congrats and results. and Vikram much Perfect. on

Thank you, Ben.

and I equation, in the you're coming service little relates disruption, to the which obviously business, seeing service could if my strong to back as it performer a a and continue but global we to has bit dig little piece the of like you been see and renewal gains share a current see the with Russia, maybe questions ag very detail So the that's improvements. just understand also more feel wanted up in buckets outlook some your how of the to the the what to side, where risks you. supply you context in some but the Ukraine demand share and you particularly I deal opportunity, Thank market are just about your and grain of want world, versus everything shaping the of outlook. signs to oilseeds

question Ben. Yes, A thank you, full there.

our quarter in another strong it It was year. trade was was service has all very facilities. America. global delivered ag strong very, at strong through marketing South It this destination listen, in North strong the So America,

cheapest being course, delays. will think you because couldn't look in the more we in they maybe when QX So than and the QX of export to little rains and a of We were probably origin. that Brazil able that the at the large QX, have take it over some bit and crop do Brazil of the

activity still important there. was holding an the marketing world. margins is It Destination around

the the world. lockdowns, has of very to the with the You is When downs about Brazil year, strong an have that terms and the of in in associated. describe crops deal the and think with a trade lot We risks changes year ups disaster crop. crops, creating That recovery of the the around China we Argentine the flows. hinges in in still demand

U.S. sending back, little are to transform to all beans So we sending from also is bit Argentina; biodiesel here. to Europe the and of sudden, a a Brazil Brazil, beans sending into but bringing the maybe beans or biodiesel both of

our So there that, takes and on ability our ADM and that's those and in execute our of become lot huge advantage. flows footprint footprint is to advantage normally an trade a of normally changes

So that ag around year. you're see to going services the in

said two lockdown. pivoting of this is, again I China are coming year. out demand One things there

since second the The as to last Ukraine doing we during continue been to year. ability export August have is of

our always renewed that XX% soil has export in all that sure continuous been for corridor course, of to the Ukrainians, remember the the as that world. owns do world of black ADM, the that and source will rich we part best Of make the

very condition – important production very important a it's area. So

a have days corridor of views being view week. of are few unfortunately, we the over differences point at last week the per Ukrainians inspection been the course, So this Russian to reduced time. seen renewed, in but between has vessels maybe there at and And

remain and do we we this. ready help to remain hopeful to So

the should is availability of what worry think or the hurting crop. accessibility said, farmers. and this Russian corridor issues, of better the that we regardless what is need conflict of are for not conflict of production production. expectation is Both availability corridor. all out think and to I lower the What This years, the be that area bringing think come dealing prolonged the the about Ukrainian resolved export over worry to I the that hurting fundamentally, coming the I I the is with farmers about the

issue, and medium-term, again, again. more think, of tension short-term I pockets worry or So long-term availability creating accessibility about and I the

question the next line comes The Andrew today Markets. from from you. of Strelzik go Andrew, Capital Thank please BMO ahead.

Your now open. line is

of more in Hey, like that we questions. have Thanks sustainable, out the one I still much, and refined that the very it which for the on that much anticipated. run came than products it when other you biodiesel much seems in I good there that morning. of My taking some a happening? And stronger again called things guess is first lot those in but are the segment, that look Is at would dynamics second not Are changed the things, a is more prevent quarter? place. that achievable rate, from possible on

Andrew. Yes,

performance. that or we this execute very feel and probably last good in well year's segment I pretty will exceed we think

given have We we visibility book that good the have.

So and they we be with demand execute continues well. strong to We the continue to there margins continue and to us. be see there

soybean to some oil. It's continue So impossible develop coming, the very to industry ramp soybean this. facilities, for all a specific the difficult you ramp It's of feedstock that of oil maybe look some participation without material see key up there data, of a all the will you has been be this up to all when at but predict, facilities. slower about comments

get that oil for have source. to to we a path Now canola

diesel U.S. biodiesel like up the production in previous year. Renewable was XX% production was versus X% up QX.

be a continue U.S. as flex will we given better I last And We our from to benefit book able bring we affordable into we be that. industry. have, year And said to visibility that the than the before, year. Europe to system expect have biodiesel to that

very we Andrew. confident about So this, feel

the Ben Thank from you. today Stephens. of question from go ahead, next The Bienvenu Please line comes Ben.

now is line open. Your

much taking the so Good question. for you morning, everybody. thank Hey,

morning, Good Ben,

I want business. the and starches about ask sweeteners to

by weighed through the volumes a excluding about strong of the good you're ethanol? Obviously first on profit talk margins. was You backdrop called Could been good results, operating the and year out weaker and from in balance the core quarter, that have results. ethanol seeing overall up would the little headwinds the segment you bit

on you're so Well, right. and starches sweeteners,

resilient Mexico, down. break the and which we we from of last Let's helps the the see we contracting The had part increased it and see good demand also margins sweetener portfolio, business. liquid given strong volumes year,

should sugar The thing prices. that of higher course the over is the help other year

While, you are seeing know, some but a supportive we and also The volumes. we we be margins part the side, specialty have of of sweetener margins, liquid lot don't do starches. of in that extent sweeteners to side spot the business, and should the portfolio. of but softness strong the That's

QX the in and In continue year. for clip that anticipated mix the and the towards biosolutions, we more when more growth percent with consistently revenue moving you in business. the of to had few the years think at this portfolio, over the again about last XX-plus of are BioSolutions And that and course very performance strong

us So have robust so at Starches, a margins, confidence and give good year in volumes very good and a high level Sweeteners it XXXX. that should again we'll

that of ethanol, think also But side. see tax repeat. the of respect will part little better, most portfolio, some which with was we QX is QX credit, our the green ethanol on to remains which we last soft. biofuel lower although We a not referenced, had be volatile the to year. Now than going We QX shoots

few We of a reasons. are for rest more year. ethanol of the about the Why, outlook constructive for the

India. their levels demand. QX. Japan coming see good we we earlier off in in peaks even from One stock export Think to continue Two, ethanol see happening is, and about what's

saw be should with what consistent we billion export billion, So X.X the which in our demand is X.X year. gallons, last

rates. We also see higher blending

demand rates to be think trended strong blend I blend up. strong continues economics. given the Gasoline have slightly

the year, we an last ethanol the for generally low So be still absolute year. rest likely in versus of short, while will we're margin perspective think from constructive

year overall, business. see pretty strong a for So we Carbohydrate Solutions

The Global you. Securities. of Thank Please Larson the next question comes ahead. from line from go Eric today Seaport

open. is now line Your

good and Yes. congratulations on Good a morning quarter. everybody,

Good Thank morning. you, Eric.

last ethanol. the today I ethanol So question, this time of actually is questions my probably one I on remember comes my but – can't asked an –

into blending, So starting the but I year-end bushels another because of year-round actually now looks that billion consume corn. EXX we X.X going not which now a – we XXXX, in outlook have 'XX know XXXX, or year better disappointment, potentially, – X XXXX, in could billion it's or a hopefully, have it's

that I So comments. better put maybe demand expect infrastructure for the in But pumps you XXXX? the some wouldn't put you'll in now your would appreciate confidence that outlook the EXX. and have starting year And retailers in this for ethanol, be Vikram's can

that So too optimistic on part? is my

me Yes, and invest up gyrations we higher because here. get down a but confused, of ethanol Eric, long-term bit the let sometimes take little for you the

fundamentally should that it's if the humanity in be for to it last about hitting degree IPCC report, achieve strongly So going the on the stay X.X agreement. difficult try to we Paris [ph] that you based think argue to

you adaptation. are then key and think biosolutions of biomaterials governments thinking is part about a bioproducts about. If that are that, all all what or companies and adaptation Biofuels like

this same will the to Again, see see thing the be going advantage strong position ethanol pathway it's – position green whether to – ethanol going deliver position biomaterials. see you're shine will having it's getting to is everybody to through. future. is renewable we that's in an that SAF, competitive to be in in for in it a be big to part whether diesel, just together a going able a or ADM's on of whether it's And see manageable. to energy to ourselves player biosolutions you and climate important governments, So as achieve We whether is to biodiesel will ADM Thank keep that. that to part will, transition, going be be and and a work strong biofuels have you. to change But absolutely of the biofuel you U.S. will you're this think level to future. if key you're a companies,

next Gupta from line go Manav. The you. Thank ahead, Please comes from question UBS. of Manav the today

open. Your line is now

will so year actually move start what Help this just so guys. XQ? prices? Quick vegetable refined technically much in and They've too a unrefined come at caused capacity then still a pullback the lot. premium prices RD prices us margins this in Was prebuying benefits down. oil soybean you caused the soybean new prices, question understand significant look to And We which sharply. are at up. moved like in little it What will a happening actually up product entered we oil to crush as thinking lot of bit a vegetables,

So your Thank oils? you. between vegetable and outlook the for spread refined refined

Yes.

delay looks also So in Juan on as curve of now, green of the is renewable the because clearly, margins, crush noted, a you see diesel right And the can QX as reason certain capacity. the expectation soft. in

back is second be to pushed increase confident of The green going year. been billion the Just line has in we time X that renewable capacity to to XXXX. remain just about clear, this diesel by gallons half

a softness bit the a you in see therefore, So of consequence nearby little that. as of

there's more least aspect of part may, dollar what's Argentina, a given there's other nearby coming is The crush. the helping also bit capacity, beans related reduce that's – the at little online, soy to given in you there QX, happened that's crush of for also and happening more In if Argentina. what's with

Argentina May of going run happen in or by June time out going What's frame, to to they're beans.

that going available. So be to not is export

And then margins the be in why beyond see slight inverse the curve QX. So of back of in supportive half the should the nearby you year. crush that recovering in that's and the

Argentina. capacity all in transitory, what's more that was happening So that It that's happened. that as in is nothing well really delay as – in the renewable green is than diesel Argentina

the today ahead. from Steven, Stanley. The from next please of Haynes comes Thank line go you. question Morgan Steven

now line Your open. is

my you a earlier kind the well capacity. kind carbon in that know time taking the line for much to And be when capture initiative? be going that behind the plans triple Do putting of capital ask I on discussion the you're to call wanted for Thanks of and question. might to completed? Hey. how

Yes.

big and to the and at the well, moment, of $XX not the burden. operate we one five second So per to wells. million metals It's cost a $XX capital that. going on bring depending something a about activate well all well from million we're perspective well new then is Each

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today from Ben. question Please line ahead, Baird. The go you. Kallo of Thank Ben next the from comes

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be for will a while. issue that the So

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your second will part of think I Vikram on RVOs. cover question the

Yes.

multiyear the not, December we this and in in written Ben, the EPA, the the for category growth comments came in out know, note you proposal of improvement however, important assessment diesel. largely was renewable that and to change advanced And testimony for beyond. strong way We, as support biofuels the and in strong year to as of well note our our opportunity biomass-based for the that the RVO the appreciated constructive did industry As conventional proposal capacity ethanol. it's does diesel any

in And come this is June. out going to

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Thank you.

from ahead, of Tiano of from America. the Salvator. Your Bank final go question line Salvator today Please comes

now Your line open. is

very you segment want understand back a go Thank the Ag much. I and to couple Yes. Service of to things.

the expectations were I earnings they So be remember down when last instead, transcript And up your if to go initial back versus year, for to last were I correctly. firstly, quarter, XX%.

want for but your what actually lot just QX? a dislocations differed mentioned So, expectations firstly January versus I understand to you of

And this that given expect comment QX mean a last $XXX do is you bit And that's Ukraine QX can year. from want Does think regard Thank the lower year-on-year. flows? secondly, Brazil with Ag QX made million Services be with what that year. sold a much. frame very will may given boost that QX? far farmers QX you have where you pretty last than everybody these to Services And earnings How just much you I expected profit. selling less from soybeans for these trade still Ag you to especially very – – in see situation be still little big to the I versus

Thank you, for the Salvator, question.

This continues outperform quarter. a on So expectations. to Ag as team deliver very, said, own you Services has good very and sometimes our first

in ability all you you about the around team with global to if destinations more their us and think our to past. made especially trade on years the investments over that you will allow have we the if but world are difficult If volume sometimes the destination with than at and with markets and higher to estimate, will capture connect, the issues margins maybe origins

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rewards get So we the that. position from and properly, ourselves we

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U.S. more. window the bit the extended little So a

and And if quarter if we're what second Now Brazil, quarter because about we that we to you think little think be the little it the – we think world we're have – and to bit was of a the now. on stunned predicting volatility about a in do world year, starting lower at time. second Ukraine same going was not point you is that what bit have last

the to export; most know flowing what for product we We channels do? is Now have the do we part.

I As about later think worried that. farmers this we're the have more on. to of and of I warned my Ukraine question, eventually for think export the we ability year, Russia I the previous But productivity in

run until crop expect America out I Brazil We lap robust second is available. think Brazil of that American will North core. until con North And corn then exports

American have quarter second expected we because place. So take the exports that in will North lower Brazil soy

soybean will. it. then large a Brazil the So by the crop, Salvator shift the to little corn able bit to are decrease ship ports honest, issues. And and to be And and it's have you a issue Ukraine of and has move to if that the we sometimes marked shift before. be needs that you crop it discussed able being to the logistics

general, first I said, So performed is those well, in exceptionally as and quarter. the the In are performing the takes. well puts very unit

strong to expect We perform them stronger Thank last year. quarter second quarter, second as as but not in the you. maybe

session. to I'd Thank the over remarks. closing pass Britt you. question-and-answer Megan today's like for conference to concludes This

you you free joining any and Please have with additional a and in today. time feel interest good to us ADM. me if Have for follow-up Thank for your questions. day, thanks

concludes conference Thank your for you This today's participation. call. all

You may lines. your disconnect now