Archer-Daniels-Midland (ADM) 12 Mar 242023 Q4 Earnings call transcript

Good morning, and welcome to the ADM Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I'd now like to introduce your host for today's call, Megan Britt, Vice President, Investor Relations for ADM. Ms. Britt, you may begin.

ADM's and to Earnings Year welcome Call. Conference and Fourth Full Quarter XXXX Hello,

today to led today, of Ismael and will our remarks remarks Relations prepared prepared Our be section supplement to posted our and Chief Officer. the our Executive through on presentation Interim Investor slides Board the by website Chief Officer; are our the and call webcast. ADM Roig, on Financial link We've which Chair Luciano, Juan the

on constitute under company with may on views factors update obligation ADM statements materials has statements financial materially information and that from future are to concerning current comments assumptions our are reports result of many of cause These management's forward-looking results To and its that ADM factors or provided presentation. applicable statements any economic permitted this subject new reflect future forward-looking Some additional SEC file the based to results. events. and materials and actual the extent and law, those circumstances, differ as could performance to information of a assumptions uncertainties. estimates that risks no industry conditions, in assumes and and in

Juan. to I'll the call now turn over

internal appreciate Thank we today's your you, have the patience than and later filing. good we we're expeditiously investigation all holding call work our and joined XX-K to as call. managed who Megan, and morning for this realize to in our through I we past complete have have

our on Directors. investigation, of the being at we made historically that Committee we financial footnotes by the amounts some market. this Ag connection reporting on release were have intersegment between Carbohydrate and to to in Nutrition Services certain the we of have income and cash loss perspective Solutions has . In recorded progress provide adjustments the sales no our Audit internal and or investigation, segments Board statements with on our approximating have I market. morning at reporting flows. additional update, internal The approximating sheet, occurred impact that that led balance which disclosed segment of want Oilseeds comprehensive amounts our our sales intersegment recorded that Before the or statement ADM been we earnings, issued consolidated corrected in is start business our the not

adjustments In are as our the not financial to addition, consolidated determined we statements whole material that for any a taken period.

this these have levels and Form that operate confirm priorities also adjustments the incentive the details strategic our plans. XX-K We we change morning. under filed Further in this our not the Throughout forward. process, achievement is drive included business we to did continued

will Exchange investigation we While today. you to we Justice, understand substantially cooperate and that our taking the matters Securities the questions related of the be Commission is to these we with hope internal continue complete, and and on Department not call

updates provide this will future in matter the appropriate. on We as

$X.X to per quarter have year billion. where $X.XX Today, and of operating segment share turn full our and adjusted fourth of quarter fourth Please reported ADM X, highlights. captured adjusted Slide profit financial earnings we

our year share our per EPS best full segment Our adjusted $X.XX, adjusted profit $X.X in history, earnings second billion. the was were operating and

XX.X%, another year ROIC fourth above was making adjusted XX% our Our of quarter performance trailing ROIC target.

working before $X.X flow cash operating year full Our capital was billion.

shareholders. years share dividend of consecutive dividends marks increases. dividend years to of $X.XX in $X.X which expectation returned cash the XX and flows in raising continues XX cash our XXXX. with to of an announced we and business In strong we share our total, billion sheet to shareholders our the and forms balance return in flow January, our to to of continued quarterly dividend, strong Our XXXX, XX% and in annual per uninterrupted In repurchases us allow of cash management in disciplined dividends increase invest over our

Today, ADM's to under program. up in share $X we our in XXXX repurchase billion also authorized that shares of has existing repurchase Board additional the announced

performance business the XXXX maintained the Despite operating Our the combined for where resilient earnings strategic strategy of is delivering accomplishments strong portfolio shows challenging for year. ROIC results deliver a to more overall our environment, key while our broad effectiveness we enterprise. and across of

Next slide, please.

to To customers put map several value closer perform we into end strategic and metrics by important perspective, expect of the XXXX. results highlighted getting our growth XXXX, XXXX where road by to provided and create the returns we at to it on

look to end track per top share over record per XXXX earnings our have adjusted EPS at X-year I our share As $X $X of delivered the at these objectives, objective. we

that to also customer. we businesses ADM fund shareholders. seen products. in strategic connection serve renewable target. partnerships, or our ROIC of to our our have Bison in Marathon the and the been food continued our Minnesota while We above facility performance, the with is through Whether investments starch able our to partnerships investments These cash positioned of fuels as growing green to our needs across strategic returning industrial programs to Marshall, even and regenerator Through XX% the efforts our have have closer agriculture deliver strong JV and customer expansion growth

for beyond share These investments to move break to as others $X EPS the the them our XXXX. per like range our $X we support strategy, -- current for they only will through and not base be us

turn priorities I to which value summarize XXXX. our for creation in Slide X, Let's

two, for have one, stronger key XXXX, We continue we building to the three, identified cash a And priorities cycle; this, enhanced the return support for of recovery future. and X managing to nutritional company shareholders.

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provide strong prospects. growth initiatives In strategic that XXXX, will to continue those focus we on

plan Middle to a differentiated closer in Our And customers enable and continue X capacity, Through this growth for destination marketing bring us increasing several continue carbon We of in services, increase we them generated we to our the by we volumes. achieve own XXXX, our added East. more past farmer steady From The leveraging and and and a XXXX, XX% about to volumes expect pace offices across partnerships ADM to are than to is an their both been accelerating through more. direct lowering expand. over add Direct financial footprint in the In we the us provides efforts efforts. own buying take we decarbonize and marketing to this to steadily value years seeing serve new decarbonization grow together. plan ongoing even destination our year-over-year has X% products X Asia this maximize to X to relationships network Ag opportunity strive our farmer into by returns in to XXXX, by further working origination of the of creating operations. as our to our sides expansion, we to in efficiencies directly XXXX. customers and Regen move as XXX,XXX

processing launched support from the customer our starch capacity we the facility. our continue our to strategic solutions Bison of demand. within products. expansion XXXX This formally facility Minnesota capacity these soy as of mentioned industrial demand renewable And serve productivity fuels growing sustainable to opening connected we to a as program build for the execution well growing initiatives, for Marshall, and to addition have I we wide efforts, excellence organization. drive of earlier a products variety call Green the to Tied

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commissioned of enterprise to see in $XXX X all of savings and we already have from operations across million over supply than the corporate more XXX projects to plan aspects this, our years As traceable costs. next cost chain part to

Now our year to had we course, a expectations, the difficult change within discuss Nutrition calling recovery have for well below this reason. been Nutrition section, to very results let's and return the with aggressively Nutrition working this of and business. We're plans growth. our

some strongest issues supply chain the at to needs, customer well fulfill pantries In This forces are our the result time. Nutrition, Many when not are XXXX we challenging combination control. can representing events already some as the in market complexity demand. for our And created operations a times as in business on that softer supply improve. of proteins demand as of the fulfillment. built market impacted the our within over efficiently specific taking action the and misses nonrecurring We're our ability plant-based industry. meet complexity into For areas and such added destocking of the forces, our demand of on we one have to Nutrition customers' zeal

that changes our To improve business address fulfillment the pressure ease will our drive dramatically performance. overall on and the have simplification across we this, to supply demand important made chain Nutrition

have we strong a created added operations chain with duty in stronger division across a leadership expertise of leaders and management. new First, supply

back taken supply capabilities core business, expertise We have signals. COE our to into commercial responsive chain build and make the our agile overall also helping steps more to demand

largest for engaged across operational also further identify our have third-party to improvements facilities. We help excellence opportunities experts

example strategic of further alongside to about We is this of and have simplification. more brands production also the production efficiency lines of customers XXXX. product greatly A achieve X/X reducing production the and by operational XX% in landscape Animal to presenting than recent we simplified and line Nutrition SKUs, are supply the closure the downsizing XX our

chain the mix Now product better serving and business. the of efficiency supply

our enhanced both to the to approach optimizing as we have our Leveraging acquisitions, M&A acquisitions new increase than recent also our and targets. of Nutrition on in more experience focus We're creation bolt-on value integration business we portfolio. large-scale integration

making our surgical we strategic to portfolio to the for continue target We expect. returns fit, achieve assess decisions

QX, are and in throughout XXXX we expected to recovery course production signs how our positioned has efficiency, proud our volumes the that the strong as move recovering the of operational demand that seen suggest We're leadership during on evidenced rallied this a and improvement in action through destocking impacts last with the capture around first After beverages in of see were year. which took is example, showing For are returns already not seeing the of shipping X to we the trends new plan, heightening well JVs are criteria. in subsiding, we Recent team quarter as we demand month. meet by increases steady flavors. to we've

the And excludes of in that quarter improvement acid indications amino which of will Nutrition, another the seen the And early solutions. pet continue. of suggests in we and quarter this base Animal sequential XXXX business, have in first

creation, and our dietary flavors, design like and and value supplements nutrition by opportunity our customers, agile well received centricity evidenced capabilities pipeline differentiates by pet. industry-leading key expertise win and robust our Importantly, customer categories us. development across be supported continues as proposition to innovation rates through ADM's

continue model. important believe role that an Nutrition to integrated in We ADM's has business

Beyond and adding value is to consumer AS&O businesses, connecting and closely needs the to more carbohydrate ingredients solution growing our base. is with customer a us address by produced evolving innovating Nutrition

allocation our Finally, deployment capital I'll to continues turn strategy to attention decisions. strategic cash the guide that

This the authorized program through As of commitment share capital $X since dividend has with announced will that as our the approach. billion shares allocation $X.X executed growth. executed an billion balanced noted, billion through This Board shares to a as the year, additional of to $X coupled in is we with repurchase and the XXXX soon total already repurchase repurchases including in practical. be announced an XX% the accelerated aligned today up in to remainder

believe perform environment in these a set areas external we operating challenging combined, of So in XXXX. to X ADM well focus

now I the Ismael to operations. over for on detail the to Ismael? call like turn results of the would more

Juan. you, Thank

year. the At insurance, the in and increase operating environment. on high was profit segment profit operating significant other ADMIS delivered X% captive Overall, we had EPS which Slide was company profit. decrease down billion a earnings Oilseeds start we the Nutrition. for operating overcoming a highest year, Adjusted for X, in operating the primarily overall Ag and prior segment, challenging year-over-year income Services operating and includes history, provides full in Let's a segment In $X.X a and level, versus which second XXXX.

than for share in Carbohydrate Improved $X.XX impact Carbohydrate related more equity EPS more share led were manufacturing margins, from well $X.XX year. in Nutrition, AS&O $X.XX the the prior $X.XX per per year. versus a Wilmar, Nutrition earnings, the per versus decrease the and higher costs higher crush year. offset mark-to-market primarily offset reduction impacts the improvement share volume in leading earnings Higher share attributed ADM year. AS&O by to decrease lower versus Solutions a than results timing as as of prior costs improvement rates in per the $X.XX positive Adjusted pricing $X.XX declines ADMIS Volume partially resulting the to versus year. by & a in the interest downtime was Solutions per prior versus share related partially offset the year. per corporate implementation, drove share related unplanned a One Lower [indiscernible] and to at to prior a prior Increased complex to in

more share to For were leading higher impacts the share repurchases recovery than from year. versus per income and other, legal recovery prior benefits tax related cycling producer from a adjusted and by decrease offset rate $X.XX program, onetime benefits the biofuel to an negative

Slide to X. Moving

Let's look AS&O. at our segment performance for

volume Trade, Global and prior operating were versus level XXXX. margins American flows segment margins full XXXX. was were for led delivered to the process full manufacturing America an $X.X as Ag by origination million, offset in improved billion in than prior as record more higher and profit reduced than XX% trade lower the operating of crush segment costs. to $XXX origination volumes. lower X% by versus the AS&O partially year, year the North volumes profit, segment the Crushing the For operating year results offset Services year record in compared In lower lower was stabilization profit exceptional lower South

record XX% results year. biodiesel. higher Other in Market year. the in for $XXX impacts million prior million prior timing impacts resulting Equity a $XXX in million margins and of timing earnings year. negative drove were of approximately positive approximately Wilmar lower million Products by were driven Refined to volumes $XX volatility 'XX, were higher, compared $XXX and than the in Results

Now let's at move Carbohydrate look to Slide X and Solutions.

Corn year, posting benefits volumes of domestic program. co-product X% well by corn Solutions exports In a million, rates robust in year record record recovery executed biofuel supported environment, processing, prior full steady in teams the $X.X Starches year values. the lower to strong producer Sweeteners dynamic and production profit and In pricing offset onetime versus were blending the weaker ethanol lower wheat higher year. Vantage and billion, mix Carbohydrate and prior The included and For segment milling. margins. operating demand segment, a and $XX USDA was also related The the

more year prior XX. and improved target. Please Nutrition, to progress This BioSolutions year. to beverages turn and also well growth for continue partially ahead to to benefits by now offset systems X% the mix initiative, volumes. Human pressured due well the strategic implementation. to related the price currency plant-based demand and mix versus system operational proteins, of lower Ingredients. impacts Specialty market volumes was pricing and billion our for Nutrition, in coupled challenges XX% revenues delivering integration the We destocking and offset declined positive Demand as in destocking lower make price This significant as and revenue than on flavors with ERP related In impacts. our Slide [indiscernible] plus headwinds of In $X.X were full impacts, operational challenges ERP

and Animal to normalization versus and fulfillment lower acid of volumes the lower revenue solutions complete markets pet amino in challenges led demand premix feed XXXX. In Nutrition,

Now please turn to XX. Slide

mostly the driven onetime and premix be and demand, X lower mentioned, of in operating Nutrition $XXX lower the previously well year, impacts the -- items our full XX% versus offset $XX and and Nutrition catteries buckets: from were to weaker of $XXX higher compared can forces million, performance proteins, prior operational as XXXX XX% across the operational Market to amino XX% year. was majority by lower implementation a Animal were characterized bridging pricing. for accounted lower this related of by Nutrition forces, plant-based volumes pricing. results lower of in normalization the destocking the segment acid were the increased and as as market deterioration than challenges at was the challenges. related ERP prior and and cater unplanned volumes impacted prior primarily Human volumes lower downtime year XXXX, the For costs in from to as year, the which partially million million demand industry. completed beverages results When profit

onetime the The operating to Secondly, decline year, ventures during investment of $XX in and items the segment underperforming profit. total onetime Savane of over and ] in in joint $XX of [ X/X the remaining million impacts was million PlantPlus related million wellness. impacts for accounting $XX to to losses valuation amounted the health related onetime Foods. was

strong the year deliver struggles shipping to and demand product the we -- Lastly, the impacted also that our of complications had manufacturing course created. products, operation that both volumes have and impacting on in production systems led -- of ability own producing The we ERP to costs. implementation negatively over our

month, confident come lost back the in operations seen have we that in are improvement we Over 'XX. in past volumes and a see 'XX will steady

Slide please XX. Now turn to

million, operating the prior new losses. to year. Services interest year, net the transformation year claim the full premiums segment improved onetime on short-term rates. for higher due was offset prior other prior were results to For captive on corporate higher expense Other Slide the year-over-year interest year, up unfavorable compared to $XXX $XX interest year net program losses to investment ADM global insurance income. corporate profit of corporate, technology to results was Higher higher full partially costs increased on Investor higher versus approximately on Unallocated XX. XXX% valuation increased In digital by efforts. support spend million. Please the compared turn

our which bolstered us generated drive again flexibility last actualized new were significant the framework. cash and strong growth. investments billion XXXX, our flow support business cash assets, In Over provided with have in modernize billion, XX% in flow including in of approximately capacity company and financial growth long-term to were had we to has digitization flows footprint. of X reinvested that capital the the years, $X.X line our allocation asset sheet the existing with $X.X of or and cash our balanced balance

capital also flows repurchases. XXXX flows significant in going going about XX% to supported return via dividends to $X.X billion earnings of cash share Our or cash with and nearly nearly XX% shareholders

expect we assets. focused aligned the XXXX, reliability with to to hold In and safety capital level amortization expenditures spend around of and a depreciation with

manage cash We our and and savings working limiting M&A through prudently also excellence. announced for beyond to drive focusing intend transactions needs team cost execution on the initiatives previously generation capital

deployment focused of cash cash, terms in for QX nearly priorities remain nearly finished shares year in so our the shares $X.X in earlier, We returning and strong mentioned Juan in the momentum billion with will XXXX shareholder. of far As repurchasing $XXX around million of QX.

the Over with repurchases actualize an repurchase to as $X the through practical. of executed we course soon $X billion share of as billion year, additional share accelerated being intend program

support to guidance key Slide transition for grain larger improvements and let's anticipated production to levels Now a is as global please. discussion weather XX, on supply should XXXX, oilseed in In XXXX countries. expected increase of South American in

and ease per commodity range created flows into over we crush global soybean metric for anticipate to moving ton. highs metric margins recent in a Assuming prices adjust of will the ton years, likely $XX XXXX $XX dislocations past trade moderate X per the to

expect soybean demand improvement. and growth structural From diesel from low demand meal single-digit the growth to demand to side, support oil we vegetable continue renewable margin

the at earnings the per prior year to adjusted $X.XX to be of expect $X.XX per We midpoint. share representing decline range from share XX% an share per in

segment for XXXX. expectations our Now breaking by down

crush and XX. against full metric $XX AS&O, the periods soy to to Let's per renewable market turn the capacity. balances lower as increased within of and In We increased crush versus be to global margins per weigh year anticipate soybean on global better we segment. and supply also normalization quarter availability the $XX comparable the Slide prior ton the be of diesel lower as ton range metric will to commodity margins first anticipate

green Our should process our operational in efforts to and high excellence improvement the Bison volumes. single-digit mid- lead ramp-up of facility to our

In reverse lower versus in as expect Solutions, biodiesel be year. XXXX gains contracts We quarter we timing to are Carbohydrate the executed. lower to anticipate significantly first the prior margins

as starches weaker year, ethanol. year the improved could slightly volumes be lower and the by in than For margins XXXX anticipate sweeteners offset we and full another but strong

first prior East For operational associated versus we market, normalizing faced with fixed challenges texturants nutrition, to lower related the the as expected quarter to and Decatur be from costs protein is the year volumes. headwinds a

our Nutrition 'XX. recur. full the year, We not we to Nutrition Back market However, We yield path assume and do opportunities [indiscernible] in conversion normalization to We for mid-single-digit Animal pipeline in significant in revenue to begin onetime Juan. a its to a expect XXXX to of events Human anticipate be anticipate to growth. significant of recovery. headwind

Slide share again turn XX. In our Thank let ahead. X you, Please me the summary, Ismael. priorities to for once year

ensure our our projects, our and drive efforts across continue we portfolio that executing of of innovation excellence. productivity our will teams to made and capacity on the execution for advantage business We gains drive taking have are generating and

that deliver to our our business pipeline. capital that continue and return best the strategy, on opportunity repurchase the can build products driving our shareholders accelerating our that we're We the expectations. both growing our is and operational business we to in near allocation it to prudently simplification to balanced in Nutrition in share introduced, we program brands actions into business have dividends our ensure tuned our This return aggressive also while take includes to portfolio the investing changes ensuring more And through and term. the achieve continued have managing actively supporting to of growth areas

I'm resourcefulness. the ability deliver chain markets I fuel path chain to our as that believe food, feed, the together to in in questions. and strongly profit want for future supply the in for work XXXX open into long-term please and transformation solid partners to value the my to to the will agricultural critical for industrial Operator, our a leader move powerful we we continue I and to a driving results express dedication, pay ADM growth. hard plays bring team the role confident in serve. as line and their gratitude ability ADM across be

Sachs. comes question Samuelson Our Instructions] from Adam Goldman first of [Operator

earnings that outlook controls. slides question framing I go-forward the on the Day still of guess ADM per Investor and the investments own up in outperformance expectations. last had driven XXXX [indiscernible] some largely and is in not The couple the targets share. in years performed under particularly items terms to pieces Nutrition whereas versus of has returns you around AS&O, the the of cyclical control, of your in the And the really been my have the

for we more As quantify the return earnings least the are And put beyond in the that's forward normalized you you as in at want finer earn versus business? to XX, bit part. on how year a about maybe that think made this the cyclical point substantial actually little Nutrition path at you've reversing, parts to least work on in Can you a XXXX business? think about investments

Thank you, Alan.

let's in businesses take businesses portfolio. each the the the -- of So

we historical to going are were to averages, think in that we moderation, forecasting XX% taking we they stay market. Ag we you even and margins were we of and forecasted oil see the But the and the seeds, couple we in higher although seeing moderate over average. about had are spectacular opportunities the XXXX last than when said, full are crush margins XX% that So going Services than to performance as higher of see We years advantage that.

stayed quiet, cycle waiting to not have We the reverse. for

adjusting our business We model. have been

X% now are those we continue continue we ago expand, something grow that new to didn't that. we about forecasting we're Middle saying margins. me marketing And geographies volumes going to That into destination this and year. continue we grow a few in we and the Southeast Asia. years us East as expand and gives help have program that And to extra You

our Regen the is our program X have program grow. we -- customers industry also in we that with program with And their the think Scope with continues the together are leading and customers, emissions. we're helping you When the to and working about that Regen Ag CPG farmers program

grain. We we in at to way We're for farmer are that's the doing the producer efficiencies the looking between direct us also everything get us chain. an buy and ability value

XXX,XXX get advantage the to we well. of the course, So with And on have that leveraging as volumes pharma we we're as an increase producer around relationships the XX%, world. our planning

have Of capacity. expanded course, we

in Latin expanding are We crush America.

Spiritwood. We are America with expanding in crush North

that Services say, that the when be what call you So I we're excellence, was take for going improvements, you to push lower, agenda a if going that to would 'XX navigate and we be innovation help a also but the our as is plus will, Ag operational year still going We and strong productivity see is be still to us for year. going strong to through this.

the to course, a oil. Of price the has into capacity all Argentine the strong ability still extra we and market the but see growth with capacity a margins, and the higher of a the demand crop crush lot of mill market absorb that strong with for

side. on and Oilseeds that's So Ag the Services

the very last On 'XX. very business a side, has had good Solutions 'XX and Carb this been has stable over the few years. It

very maybe good XXXX, still with We we We program margins. slightly are had very but We very, a renewals contract good in the a good. -- it's good had lower, a for are happy expecting XXXX.

have margins for the have maintained volumes. we We gained and most part, some

and strong. had strong. continues it has So last very drive volumes to milling year been year, record The are going, a business

saying, business Ismael a I decreased per lower And little of where bring But area. the everything in a the grow, think we're more can bit. for decarbonization a from contribution we that little beyond that to mentioned, solutions has both margins bit it's XX% and that demand feed growing things year. have see table continues card more Biosolutions, all products as to

the the is we're the open exports in that. now, question very maybe feel to we year arbitrage world. is U.S. to seeing about Always everywhere good ethanol. But right Adam, in mark So ethanol from the the --

get and capacity will. to if matter our adjusting more dehydrated export adjust if a to you you the capacity of will, just able it's So the humidity content, U.S. to to be ethanol,

XXXX. maybe So we should Nutrition million, story bode And well that into I years, then growth a has of in as well margins billion been for recovery for think X.X X.X take year this for many certainly of Nutrition. year. go with you and north stumble export gallons we the

some have, destocking issues the there and destocking lower stopped, reasons of now that. inflation mentioned the that was of and about reasons supply a after through the the copies industry and I all went where big we all industry the chain some the

we So biggest which had you engine is drives in which flavors, growth, which to go is will. beverages, that -- if for our

that we but for on not course, plant-based the We'll have to growth year proteins, moderated XX%. expectations into that. knew going grow, be we beyond our still Of it's

and and is improving and Wellness the we all from going if knew self-help an then We Animal has June P&L been attractive there lot had Nutrition So be has will. still improving of mid-single-digit doing their And year. growth, -- that. Health the in continued demand been Pet to P&L, a you good

So had several QX. unfortunately, the QX, in we get to we events and

products quarter needed prepare modules then of year. one-offs several ADM, gave and was action some have addressed yen some of We us to that. ventures, we much to took have We to that we take successful a implementation, problems QX the were about It we that performance take joint devaluation and we issues that. the a needed we of because an revaluation on We our couple and we implement shipping own of in One the investment of some the a for but during of some the the had last as with needed as trouble modules. but on

that very bad So all combination, quarter. a us gave have when you it

we And is continue value the from in to to evidenced commitment to there, the that proposition rate. growth conversion rate, or ability our our continue deliver see and benchmarked to nutrition, Animal to -- by we with XXXX be pipeline, our should value. or growing customers to Human of will have And fulfill you a if recovery, this our both industry-leading march for XXXX We year on Nutrition. from continue resonates conversion

we are we than So our did in We And and own need half year, that year. to processes adjust heavily during seen to we we make are second of winning. we deliver sure January last last delivering we better February that we -- done and know internal last that. have that the have much

the So that I and at numbers overall gave number company look for still with you that, XXXX. the we the confident

an from we and billion are more EPS share onset, $X are XXXX. perspective, for than we of the estimated ahead that at said in purchased schedule I already above have we As XX% we ROIC, have what we the and

we portfolio straight those numbers So a it's help see a the possible be was in it positive us are December but have that to line still -- never for here XXXX, resilient going as portfolio overall can that from 'XX. to

for answer. long large the Sorry company. It's a

Citi. [Operator Instructions] of comes from Palmer Our Tom next question

regions dig currently I where margins the global a looking Maybe drive world? $XX are year, different of kind global lower consider items bit to of about you're crush it, year's to that range, key this outlook. to the the frame last were as $XX to your in could And end items soybean think crush crush when crush margins margins and more the on then we are where we just what or upper of at? wanted

Thank you, Tom.

last as before, we margins said crush $XX expect were ton in for per year, year. So between $XX and we Ismael about maybe remarks, this they mentioned his

the that the bake market say today. I bad margins fair we have think the all has into to completely priced it's that in news crush or

U.S. the continue second to million about month say, also the for XX products, significantly the to meal tons to be very I they're crush industry Argentina last availability gained a basically probably when when in X look now having the may year. forward think the And performed market that market that board you lower quarter more confidence offers have and as hasn't the particularly last mill has the going has year of of soybean crush sites happened on crop So well. would in especially moved

remember around increased meal if town, will. And if Brazil global the soybean world, the U.S. for makes you you export expensive, soybean in the finishing that the year, So after only game Russian. last which -- in values became meal only if you will,

see saw for of consecutive at we months least industry. soybean We U.S. U.S. for U.S. saw, in record in meal that the the X the and we ADM, exports

So similar situation.

into the this, that Russians. So gain back expect now meal with the we correction soybean will in

-- optimal and not feed. without [indiscernible] it's soybean feeding course, meal, to not way the Of

to now happen. corrected, expect we meal So that soybean that has

happen the been where have where think crush you places is going Tom, where I to have day, end a in way availability to the domestic the At the market. and happen is you in of world both oil about going

Brazil. March, big for have started in that course, helped of in And and If you the us having think BXX of is domestic of with Brazil crop. Brazil, a you has oil margins

So the course, you're diesel it of green U.S. availability. bean will biodiesel. the availability go all to we the be then have And you in into than bean have, the going And to soybean have market. domestic in which need renewable of oil

X those that think places. will favor crush we So

comes next p of from Our Strelzik Andrew BMO. question

you to I earnings end in to view around that kind the specific I guidance guess, year maybe earnings question if you made whether is was XXXX and my as the of metrics that comments had follow just response cycle? Nutrition if Adam talked the up the trough prior an from you some XXXX. the didn't of of perspective I or terms about ultimately, about And on know XXXX at about. the

about could that grow? Is to you of you that. would [indiscernible] If number comments And expect you're then just an from way thinking earnings kind the XXXX clarify the which this XXXX

Yes, to the Andrew. in comment overall all, was number for my we there. XXXX still gave Yes, that that XXXX, before for is believe we of Tom's question the company number first

to will. going destination that, I was we that reviewing that through as ADM we you number be think milestone, breaking are a plan a for us see number. X-year And was year, every never we that our do if

XXXX versus here below. a positive a needs will expect a is to versus XXXX that XXXX. year So be I sense, happen, I described cycle year There XXXX, in hopefully, that be Andrew, down that to

exactly the needs does know takes it All does it it to bit make and grow. the the correct to is a have to build calendar When in all needs the in historically company And enough adjustment that's a for that year resilience be continue increase oil will hard little their in we process for or to But say. farmer and a meal to be long year, enough to that meal activities we long for happen that BXX takes how RGD happen, cheaper. more to happen All demand. plant maybe low more to to future. it's low happen going happen happens. get optionality how to related Soybean prices X months, that flat they that

have continue P&L. ability So as more the we to the cycle to more to moderates, bring

we that, with So than I'm think optimistic about better 'XX being 'XX.

Bienvenu question comes of Stephens. Ben next from Our

ask, we Nutrition think XXXX -- I want about the I to to ask think for about want segment. as we as

you higher be year. expect to profit that revenue growth, every operating noted mid-single-digit You

[indiscernible] the your of operating that by mid-single-digit referenced in the that as Is less will up in This growth recovery then natural or build quarter. the profit would I think the And for throughout the expectations a trajectory you be is cadence revenue growth. X% than XXXX. of first that is true? year kind

pipeline You there residual discontinuities first still through the Are complex in in sequencing development to quarter? headwinds the talk return the of conversion. about of the Help us growth from Decatur Nutrition. think

Yes. Good Ben. question,

Let if the you XXXX. me look at we Nutrition, give you puts takes, on and will, as

Ismael that those to That buckets, were And we faced year nonrecurring market. if forward. the the how means I year. ones headwinds other aggressively indication were that in said of fulfillment as over qualify not have will. and And have some his the first we demand $XX-something of that of to have remarks, were worked months this Ismael of nature, like think in events, correct, the we that other about we last that going [indiscernible] then X half going them the of by issues -- half and hope X we're them then So and good explained the seen you million about I

are we all don't So to say that in those again the expect I would XXXX. that positive happen

of pipeline the because every that tends a revenue and pipeline that that growth to and top put happen that we single-digit of of You on mid-single-digit conversion have the year. revenue growth

Then to high to going correction a have as have face not exceptionally were prices -- of have that We're described, that. texturizing year. to you we we to last have

will that will. side, Decatur as cost. have be through go will of plant if that tail certainly, the And part to negative bring -- we have into year, we the And still the you a operations. the of back need So we that

recovery with some driven be Ingredients. the in would will year in tailwinds Nutrition, say I by in Specialty a see. strong and Animal hopefully, how we the So Pet That's flavors

next comes Our Barclays. from Ben of Theurer question

that -- money to what of you terms but also sweeteners further for consolidated potentially do the on very side, XXXX. segments outlook maybe within it where has [indiscernible] your wanted up very been ADM starches wanted because Where capacity follow up potentially for where comparison in order keep you've the you ethanol the invest are to promising that grow to performer obviously into year. within a and are need results? it looks on significance the I it it solid need allocate as as in understand last to and asset highlighted, to And you of still different Solutions to particularly to the has Carbohydrate is business be bases, Even the business. in or gained to I some

I'm And business. and it milling a by of recognition. pieces. business, Ben into assets fantastic a business deserve year. their highlighting very is they've stable business. Yes, transforming take glad spectacular old let you're had The an milling done Carb solutions. resilient job They They a The me

and some have launched assets that shutting old over facilities down Mendota last -- team with year, in doing some assets consolidating best been a the the plant last and we been few newest has and we has in of the terrific doing world. those that So milling like years, is the the job new

So done way have to so. with we happy do are they they continue the that,

there to at [indiscernible] in that mill, of asset all a look these business, of business you shape. decarbonize mills, is we large a continues understand, has the but mill So that a build capital to be at is a wet business unlikely wet part footprint. invest large we're being to assets. can path the that reinvested we going the continue is associated moment, is to in, lot When as new business a that in the with good And

the comes ethanol of from to So COX have that as that COX the plant. biogenic we to of in pipelines you come get lot some trying efforts monetize from to a heard, our try

So because growing I at expanded say year. of -- is have Biosolutions would and Marshall XX% we per north

we So capacity. needed

to year the it far would expansion had a exciting that lot bit so final help with expansion of we is the starch because marginal little I have there It solid So is has is XX% and It margins. weather. as capacity the bad has January say the that of solid about a volumes. a It will developing. that. rough

but energy opportunity and a -- We that, maybe cost lower good. eyes by have has think get as costs that and freezing to the and weather February, hog, the chemicals and the business. that big that's some And March, in business go year plants from we look tailwinds energy

coming could that and tailwind the year. in advantage be a So later an

Manav next Gupta comes of Our from UBS. question

what oil state I recent and the just had that diesel versus some you a as the quick and lower see at [indiscernible] headwind looks a eventually and is demand move for passing then industry at eventually, actually is question. the will there federal it When Carb both we I'm the again desire being levels, think and look from are this just of oil you kind diesel seeing? at just to renewable level trying amount the as Or a renewable would rise along. vegetable at to we demand understand, we the biodiesel decline of whereby we proposals do some produced or look from the soybean

canola I oils. that how the else. capture fed Europe anything Europe need being be oil, not be oil, these will built, that. cannot RGD oil, over Manav, filled about cooking think with you [indiscernible] When will firm that needs we to with path the for U.S. the Listen, soybean have a and is RGD, Europe for clear vegetable doing? years. you, the oils think Thank All having they question. to is will capacity waste and that it commitment is see be

us. feel that So a ahead of we trend is strong

comes America. of Bank Salvator Tiano question of Our next from

target I of of go to play bit $X want about little buckets that margin it into given role getting think the just seems you you I buybacks a each EPS will and in numbers really cyclicals, segment double-digit as the back to provide But EPS. as controllables positive versus growth specific key in understand $X Can that a you back obviously detailed XXXX the mean some there to and that. possible? comments get of there. and is terms key components

on, little A early explained what Alan's I of bit Salvator. question. on Yes,

I think will cycle the plays that we see in AS&O. how

I At is think GDP. is When time, said, you soybean higher have maybe lower all point in about recovering think USDA demand, soybean strong higher than Southeast economy improving, demand. moderating, power ability meal in improving very I purchasing we meal prices a this than As those that you forecasting inflation tourism this levels if and about think Asian to incentivate demand, is with are areas.

prices You high have, at very moment, chicken. favoring of the beef that's pork and

at You have for protein better -- chicken being that. protein margin

Russian. gain that meal soybean in So we the will think

also we the correction this on crush make term how see and back. come but prediction oil very strong. And for when we for strong we then We that, demand domestic we a biofuels. think demand should in short that, probably consumption, should the timing the cannot meal all Again, very know be look that soy So but at see cycle I plays. the of that

I calendar guesses. it's year a venture or later X whether earlier, months quarter to not it's into those or So me mean, for

last through getting solutions forecast the doing growth I decarbonization exceptional was think managing of will expansion. year. between Again, mature something in in on they bio not us. the that are bring the That's that we job our see are that and their it carb Marshall solutions businesses just ahead that you they and

growth XXXX, going you again, to Brazil. nutrition XXXX And capacity will, we're we growth in quarters, of to X XXXX. a crush expect but and the next back Spiritwood, year. then that you was if contributor the of some big it in more it have the see contributor to and be brought a Nutrition not to certainly in in So we

So of moment. the at those that if will, . kind the you buckets, see I are

from comes Morgan question of Stanley. Haynes next Our Steven

to back come to Nutrition. just Maybe

wondering is level kind oriented scope kind refreshment of where to more maybe was here? there. your that. think might about the remarks, be Or you thinking I I on talked of the monetize And prepared size line some portfolio in going more this of Are looking you if could product business you at you something.

Yes, the Stephen. that me things. thinking let Listen, approach we you way and my give on these

every we medium So do And that term. a time those plan, take do our units tend at those ones to we not given we're our always that returning it are forecasting -- they in look action. X-year it whether today, take the return we we're to looking the expectations not are

with unit then to first action What a to So at of we underperformed. couple is we look we ventures, And is do joint bring performance. that I try as we them mentioned. took every

over those that sure that what a some things. there if in the make things and next those we correct we ADM. you they or nutrition part of to will, visibility or ADM as self-inflicted, X they decide then we happen portfolio, are then could Once whether are another X things in correct belong outside have belong So years, they part of we if or belong we

Latin a divested we cocoa done process past. divested chocolate. fertilizers it and America. in done. Bolivia, We We've regular that's we've in it past So the in with We've the done

XX animal Nutrition ventures. as nutrition this, like some of Animal around So done it has lines We've the done also joint it in Ismael -- we a leader of his world. cut now couple in we've an done lines and the job done with with that we've previous

have countries. we sometimes, So exited

regular had at businesses a of it's process have you a you in deeper because have a times, Nutrition, bit So lower more now a we you sudden, performance. maybe that little all stumble at look when like

see some So in investing is we those. worth of really want it to

So we're in that process.

at So but nothing to deeply. continue to we look announce today, very that

not you they good when had we they're the seen have And those with as But light them you a reflection in now simplify some to now acquisitions, acquisitions the the business businesses, portfolio to number SKUs have thinking sense overlaps. of occurring couple noticed in that the And this of only aggregate some aggregate we precursor I and acquire plants. is by labs, successes portfolio. farms you to labs, that in we these certainly, the start lend of of the nutrition come realize the think what of we've with Nutrition significant a experience for of more cases there was historically, Nutrition second pause a half apply mind animal multiplicity of was had Animal whole our comments with organization reducing warehouses number because of them, a Coca allocations, thinking of that we fertilizer. as And mentioned across in to that of XXXX. a have broadly in complementary that different by significantly usually Juan correctly Just that when the and itself footprint our that been of the opportunity built all the number a to benefits since it they've this reducing we've of some

our returning while asset going to our in ensuring by base capital So that's focusing cash our on is we where come that prudence to shareholders. improve

Our Dushyant comes from of question next Ailani Jefferies.

I as about both just just wanted going your our U.S. frame on system, well? internationally, capacity how biodiesel there quickly to we thoughts thoughts the just the talk in that and margins forward, around do and

is used said, Thank is, going production you as I Brazil. to We're biofuel to for Dushyant. oil in Well, expected BXX. to go grow

are maybe of the so getting less many Indonesia increasing their there see is around older, whether world, balances overall all that you Southeast at Asia countries you the production getting mandates, plantations in that. it's palm When look that oil. and are order, So

around to world for will, oil. So competitive less increasing you're palm going see and biodiesel the mandates pressure, you if

to So pressure on you're the oil. see going vegetable

significantly are Biodiesel, will a the U.S. leg right have biodiesel think Europe. used they be I expect the continue They will to particular, not of -- in So margins in be that, we but the in in now to for U.S. crush. good us good, and that to strong we better be as moderated them as

So and be margins better but bit for in a Brazil tailwind headwind a Europe. there will are XXXX, little us in of in

have further that, With we no questions.

for team management remarks. to I'll closing back So hand any the

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

concludes gentlemen, this Thank and joining. call. Ladies you for today's

may now You your disconnect lines.