Archer-Daniels-Midland (ADM) 30 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the ADM First Quarter 2024 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.

ADM's XXXX to Conference welcome and First Earnings Quarter Call. Hello,

our led remarks Executive Luciano, Roig, Officer. today prepared by Officer; Chief will Ismael Chief Our and be Juan Financial Chair our and Interim Board

have link call which section to the of our We remarks ADM website Investor on today, presentation webcast. supplement are slides our prepared and on the the posted Relations to through the

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

Juan. I'll over now to turn call the

earnings Thank trailing ROIC operating reported ADM Megan. quarter share and first XX.X%. segment of you, $X.XX, of X-quarter adjusted profit adjusted billion Today, $X.X adjusted of per a average

create ROIC the operating to driving structural margins, first on action where and flow the million. and of cycle, buildup $XXX proactively expected pressure cash generation. year quarter are cash a grain to Our supply flow through before was working earnings, our In capital manage taking oilseed teams is

and cash invest continue disciplined balance to in shareholders. and our our performance sheet strong to allow Our of us to return business management

enhanced for in first these laid on of in through Last return each progress quarter. out one, Next three, of cash Nutrition two, three we managing slide, recovery; shareholders. to made value and month, We creation priorities the cycle; priorities XXXX: please. the

while headwinds highlight enduring trends ADM's building the such global challenging ability Our as to mitigate manage cycle through sustainability. structurally efforts to on

share of To few examples a the first quarter. progress in

our joint and utilization run in at increased full production a harvest up ramping this Green been for sustained with Marathon with rate to fall. venture have Bison we're be [indiscernible], expecting and We volumes

XXXX evolve XX% million growth in X through have exceeded Solutions is ag continuing in which we while acres business sourced with farmers BioSolutions QX the role the our to million from goal, regen the volume have core This our long-standing by relationships XXX,XXX highlights for XXXX upon growth Carbohydrate built today increased regenerative demand playing X managing not across driving X our feedstocks only nearly increasing million solutions, partners. ADM landscape, to also acreage sustainably in acres. than ag leadership programs, decarbonization, we that goal are and we We business. Driven of are across more announcing demand the our solid is we the

Many of drive have The focused on already cost X,XXX pipeline validated efficiency date, these generated deliver is to results. ADM, are outcomes a of across proposals. To savings. and opportunities action uncovering taking and effectiveness for we improve nearly excellence delivering program

chatbot and errors like in have process, manual adjusting the our over Colleagues million Valencia capacity objective in of dramatically the extraction aggressive projects these achieving than support savings the improving timing. by of thousands X years. cost XX% extract in performance. transactions These Thailand Spain to by more us done facility our developed with will more next logistic example, or in $XXX colleagues For of have reducing automate operating previously processing released

mentioned the year, improvement we've last fourth actions in half in back out Moving the planned what of earnings will of coming seen expected impact to team on The Nutrition. accelerate of is we all The call. of across quarter. focused these the and the areas sequential actions consistent recovery, with

Let areas. me examples provide we're few targeted progress the of across making a

fulfillment our processes delivered operations of following and of in chain One debottleneck ADM the improved challenges, go-live us where has fulfillment on focus and helped some has supply Our EMEA sequentially. particularly volumes to our team Flavors, rallied demand adjust the

M&A are responsiveness We acquisitions To and speed, our to segment, market to have playbook support best while now fine-tuned across each more deal brand. flavor to leveraging needs CoE our go-to-market better model the organizations agility customer align our than and improved the initial recent most of integration the forecast wins results delivering increase and we estimates. to

allocation our capital to Looking efforts.

We flow as We shareholders have we significant shareholders. amount returns more shares. cash XX for of our maintained leveraging to excess cash than while repurchased balanced a enhanced approach to date, returned capital allocation million to

facing capital last setting line month, with areas deliver this summary, excess each shareholder. for the we our navigate deployment is our In mentioned our across are remain market up to in the on X and measurable us focus we progress priority will in which headwinds expectations. year are centered of making XXXX, well major As

I turn would the results. detail to quarter for on over Ismael? now Ismael financial more first call the to like

Thank you, Juan.

Ag insurance, Slide profit segment on segment Adjusted quarter and in and XX% operating operating a increase and Let's had the primarily which profit X, decrease segment, captive XXXX. EPS provides operating was operating profit Oilseeds first overall level, In of high quarter, we a down start Other first XX% and a versus Nutrition. the $X.X billion in was which for the prior Services At the profit. ADMIS for includes year. year-over-year

share a Lower includes per of share. driven Adjusted for $X in AS&O quarter. margin and the impact decrease. lower earnings by execution were $X.XX share led per This approximately AS&O the in normalization primarily margins, mark-to-market per $X.XX pricing business to

by resulting year. negative $X.XX East reliability at share enhanced offset ramp-up the assets operational partially impacts costs of to input per and of downtime in as share our Decatur to Green facility. prior with segment, JV, a costs Lower well focus EPS AS&O the the improvement versus in unplanned associated the versus $X.XX excellence led manufacturing as improving on Our year, per and increase led the our in increase prior Bison our a volume

share versus equity costs fees attributed per to impacts $X.XX prior ADM of higher year. versus a increase prior benefits Higher prior related to share share Increased related related In versus drove decrease legal per the offset year. to from One year. increase Other, than to per $X.XX income tax and implementation more a the $X.XX share repurchases negative primarily adjusted the leading a rate, corporate earnings, Wilmar, a the

Moving to X. Slide

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

in manufacturing due of than were $XXX million of million Crushing oil of team timing first American our Increased we Results well versus control. on in for process more approximately enhanced in flows impacts and large prior as of in profit, and our For of million Products million the were were quarter profit imports partially volumes were offset results the focus refining manufacturing subsegment global to Slower year. the the negatively profit as driven within South crush to the and trade the quarter, of of supplies by mark-to-market the trade the earnings anticipation mark-to-market the approximately $XXX million negatively as from subsegment and $XXX North management leading supplies, costs timing lower cooking oil lower margins, of operating There results. items and the from margins imports Ag prior risk increasing Equity Services first farmer America. XXXX. negative versus and prior quarter quarter, selling Other timing than lower to due ample improvements impacts $XXX headwinds soy million positive the impacts $XXX lower from positive stabilization year, American during operating increased approximately export delivered the weaker The $XX margins used million. positive the prices in volumes impacted of during higher cooking $XX improved was offsetting South reflecting year. also costs. quarter lower year. impacted by North used subsegment the commodity versus primarily was first approximately million benefits operating Refined impacts AS&O process prior volumes of versus Wilmar and American $XX

Slide X. to Moving

Carbohydrate Let's look at Solutions.

For as solid in The of with $XXX our quarter platform BioSolutions operating Carbohydrate the was executed Solutions environment advanced growth. a segment first as well volume profit XXXX, well strong demand million. team

ethanol the Sweeteners Starches to and moderating margins as the for strong results. Processing in domestic in pressured and industry by to and offset subsegments. were improved America volumes Vantage an In production well In subsegment, both the subsegment, margins ethanol supported stocks export improvement strong the Starches North Corn margins, as to strong Sweeteners certified leading Turning elevated margins sustainably year-over-year EMEA demand due in and region.

benefits revenue M&A plant-based offset billion $X.X In well X. in and acquisitions subsegment, as Nutrition Flavors, proteins quarter. volumes Please the strong normalizing recent contributions lower Nutrition turn were Slide in the were in from partially to price mix texturants and for markets. as Human pricing the our revenues by

Animal by Our revenues of strong throughout in significant second has improvement a provided and significant year, versus of We mix. the pricing anticipate prior had half pipeline driven demand in volumes subsegment revenue remained lower year the steady recovering the portion lower Nutrition Demand the creation year. and fulfillment course the opportunities. of

Slide to turn XX. Please

our challenged step, operations. have grow from room believe to showing we fourth we restore business, first QX to trajectory was important commitment Nutrition evidencing improvement While progress the growth quarter, the our a in of on an sequential

Nutrition higher For Nutrition and fixed primarily the cost the compared operating primarily cost optimization Human Ingredients were Animal $X by absorption commodity supporting prices prior segment quarter, subsegment driven year, the in results million lower due lower Specialty Nutrition subsegment prior million to first the at $XX than headwinds texturants of million. Decatur higher $XX efforts of normalizing was pricing. margins. driven profit results and business East were year, to from

Please XX. Slide turn to

digital segment was In program driven year. XX% insurance the prior the captive quarter, For results higher The $XXX on Other compared of and was as as to lower increased investments approximately Corporate, improvement losses. an Other improved the versus due prior transformation year compared $XX unallocated claim million, million. by well operating to premiums prior profit first to the unfavorable costs support up Corporate corporate largely legal valuation global fees. increased year higher efforts technology loss investment on to was

returns to via cash balance we sheet, flow capital for to us have Slide Please a shareholders. billion allowed during XXXX We with return healthy cash shareholders billion has modernization repurchases program. quarter, be strong with largely secure excess enhanced expenditures and the and depreciation leveraging with $X.X accelerated our held maintained momentum, executed and With while of still allocation entered $X approach, focused an at turn which to flows being XX. balanced approved capital actualize anticipate We to of investments the amortization, additional efforts. quarter through repurchase throughout year. share digitization through We repurchases share $X aligned will last level the asset billion of to the a intend remainder performance reliability to on

let's to full discussion Slide our guidance a on year Now transition on XX.

results quarter expectations, and line remain assumptions first our were turn, planning with in and XXXX unchanged. Our largely EPS in guidance

We signaled that approximately has are as from corporate decreased. guidance approximately our has the in probability rate net interest expense $XXX cuts the XXXX $XXX million, million interest Reserve to Federal raising of

month, would from at supply weather to years in Last the adjust production commodity these to the is will and and we highs key ease improvements in locations. X expected oilseed past grain increase, flows continue the of that that the will this, American we levels mentioned support countries. global anticipate With trade larger South recent as prices anticipated

XXXX, crush soybean metric likely As $XX a global $XX result, ton. the margins moving per in metric into to of would per a we ton moderate range anticipate

metric first crush During meal strong a executed on forward ton. margins of by supported to the soy well quarter, approximately team demand, leading per $XX executed the book

see the QX. of look we production, we forward and of the assumption American South in that specifically reflect QX As ample return today, the supplies Argentinian curves and

end curves lower the supply we that near the in term, range of pushed demand remain certainly constructive forward side. side While has the to from the

side, increase profitability, in lower in oil cooking and demand producer the of to and We are in From large renewable QX, used turn, despite inclusion from continue rates. leading soybean growth the demand, supporting soybean meal facilities expect higher incentivizing QX prices up oil. imports vegetable diesel, to meal ramp as

We to Slide market to South XX. margin year, Now of on planning of the the capacity. the lower lower versus be elevated year range of significantly increased pivots guided we crush levels. the availability soy world during the remain soybean We second anticipate average as the quarter, second against still moving the prior American our confident the as AS&O, segment balances assumptions we our in middle XXXX towards move to expectations full global strong breakdown by production. lower quarter the as through crush seasonally be year end In anticipate QX for to

elevated and quarter in Solutions, the ethanol, Starches margins for versus higher anticipate milling corn the the year, we partially demand second prior by Carbohydrate prior the solid in to In and wheat international year in driven North anticipate by margins demand moderating results be export American Sweeteners, to offset markets, milling similar and after both We in period. the domestically solid prior and year.

sequential For Nutrition, see is fulfillment. lower the anticipate We year versus to headwinds we as as in another second be we continue progress improvement to in quarter Ingredients. quarter the faced expected of prior to make Specialty demand

Back Juan. to you,

XX. turn to Please Ismael. you, Slide Thank

a that across strategic team can and execution you which operational of our ADM's As is workforce. improve agility to a see, our excellence priorities, requires is of hallmark level continuing

the help organization in based growing commodity market challenging focusing increasingly conditions of combination innovation a productivity offset and supply. to We on are

looking nimble while for to our what manage remaining to quickly to every control, are strategy. we teams advancing external adjust opportunity can Our circumstances

ahead carb While Services returns, business models the the our for the evolution look business for shareholder business differentiation confidence our in priorities and full Oilseeds solutions, to drive continued cycle. in we us on recovery the Nutrition to in position this our outlook focus XXXX have and a the rest our through in program, Through excellence year, manage put and our Ag of year. we of and of

questions. please time your your We Operator, for for line look taking the Thanks forward today. to questions. open

from comes [Operator Instructions] today for of Strelzik BMO. question Andrew first Our

crop push I to wanted out timing how timing America and terms interplay you've crush just the selling it U.S. and to South the America the It's about thinking I market. that. seems and of and crops some for about could of to farmer between which delayed comes selling guess like ask in South that implications that farmer got margins out you're

the I'm have margins and into ultimately, you there guess expectations. you see I kind your that how confidence thinking you're crush so And the get of as we part curious with back of just balance the about that the year, consistent

Andrew. Thank you, Yes.

of little So given the real. what we're last perspective, at South the Brazil America and had the has harvest couple weeks of better with selling that also moment, bit a in seeing from devaluation some a of the the farmer of

little crush the portfolio bit for our there products. improving of margins So QX we've around a seen

more bit little difficult a Argentina, In to read.

with navigates lot through are Argentina every there the are farmer in uncertainty are sell, government the the There times. also strikes sector -- difficult You There the plans know like about may popping and the that some agree are the right economic of how Argentina economy. now. a to strikes through of even some when

reality bit the you little a market, to see starting will to that. difficult is the margins, more that we're in all and But see and So predict. come crush that to crop can

the the first higher part his in in operated that the highlighted for We is of mostly Ismael So quarter, range. we was of reading what crush remarks a year. range that in

America see end and end the range. as of a when traditionally third have will a here of move September that the will we the South onwards, towards margins happen big our at drop crop when low has where quarter, in in the U.S. then the And We recover. we year, second

the the year. way we that's So see

gets cheaper more bottom We favor poultry maybe especially the as profitability mill we continue of demand inclusions, see some when soybean sector. mill the it a becomes to from and see strong in out

don't that well another of QX, BXX, the to another it's forget million like U.S. demand soybean stream And the have RGD their X.X increased will oil in of that million demand. ton coming U.S., X.X whether new mandate So for Brazil for And which more QX soybean that bodes represents tons we or plants our on bring oil.

will in year. all bring range I that demand higher the of important margins back think demand all all, that of to oil So mill the at to the end and be crush part the

Bienvenu of Ben comes Inc. question next Our from Stephens

call some of and ask, So Can Sweeteners. recovery want the remainder that talk call makes point volumes. from you're seeing the a we about strong That's you robust pretty out in of to outlook year year. to the particular, dynamics Solutions the recovery and Carbohydrate for a you a in segment, volume I In for pace Starches saw the of volume bit what that [indiscernible] out you're you last that this you seeing around year? of

good. I across all I Yes. demand, segments. we've would or been solid strong Margins know, say have strong seen say, demand I would don't our

We on in continue lift a the to the bit little better operations chemicals, facilities. margins energy a reduction our by get of prices, in reduction

year may have main and was exceptional And have milling moderated in in last business I international the remained last say also difference business in strong. we But very the Europe. be bit. a little versus corn the still, margins would year, Those

would year, all expect it. Starches other strong with contract the pulling I So exports and the say Sweeteners for we're countries pleased to well. And Mexico, we

So would that's we last year. better going to say than having QX feel a be about strongly I

So the is continues very the ethanol cautiously bit will lift business, little of business all uncertainty that solidly. a inventories, operating the which side, seasons the rest rest optimistic margins But all, maintenance stay of the balance are of you if in the will, the for to on there. we in and

Our Palmer next comes of Tom from question Citi.

refined to products. I in maybe wanted dive little a on more

XQ. other U.S. have And We spreads? then seeing unwind noted did of basis a think year margin used in some remarks, then imported ago. when Is on what the this about of regional lower refined more you You a gains guess from biodiesel I oil. those saw you timing for we year in pressured some places? more pressure an expectation cooking than a bit prepared and in are

expected we the on those move through help of progression any XXXX. as Just

Yes.

in were last that used of the results imports little so year. described, a impacted The part. is reason cooking significantly the America, difference for as me let we had North lower America RPO deconstruct a negatively margins. record QX, year, where So refining bit Main than you North oil

Actually, little the there say refining We say refining that I would we offset lower the margins. a volumes strong had is additional as results year, in premiums. would on our executed were line biodiesel higher. I And EMEA, with in bit prior

of million South That's stronger supported biodiesel as and the, are biodiesel that. the that American per current demand tons packages, year by year, really margins in impacted X.X in in I said, results increase the mandate. new

the quarter, in similar margins think dynamic which be see North little for I will crush in America and you in margins will better and second overall, a bit refining South America. lower So refining margins

And timing unwind? the just any help on

timing Yes. Year-over-year, net of in was negative QX. there $XX impacts million

So a where a $XX positive versus had year, $XX million. this quarter mark-to-market we negative million we had of previous the of

the that's if you of So arithmetic, that. will,

Manav question UBS. next from Gupta Our comes of

Like My the restart only in is, path of restart are where question us can that? you the to Decatur construction, we the plant? if you could full with the East regulatory help or provide out

Manav. on as carry this But Nutrition Yes, is is there. -- going there I headwind to have we activity think the as a a going something we is whole year. of said, Listen, lot during

that on as projects. cannot details all operating more provide or I QX. that granularity We going we're expect be to through that, in plant reasonably any the

a we I to headwinds for that lot say, through think more in time, we guys that Ingredients, this you of would will Nutrition on soon that. updating think all specifics, by you But need driven year. I this in and will point But Specialty the at the carry be as have as

from of comes Jones question Jones next Heather Research. Our Heather

margin the discuss I could want help more, on a you side. me. crush specifically hoping to Just soy outlook the little just

in you earlier, wanted you just more. for little thank to So provided dig but bit a I cadence information the

then basis, range. for the has U.S. So cash the XX. below below at curve the certain materially margins in on present, a that regions, they're And

materially offset is that. and about you material increased of So trying U.S.? rest the just are the Brazil U.S. margins the it oil present? to you think than all Or the going when I better will Europe a think think are how soybean assuming at indicating you all about the year, is to cetera, uplift regions that provide et are to was make curve about thinking demand, So like

lower that the get to so we we in said, from more Then it we're Yes. billion the beans hear at and will and of Heather, to rates renewable QX coming will America, that's as diesel we probably good green Listen, get from we North seeing QX come drive here gallon X moment, the capacity that, inclusion we move and coming, and U.S. range. the part higher. of QX you. volume probably as the the year more more through think way

QX better QX, only also the right you Brazil we plants, not across area, margins the in domestic In export if gotten ones, our have see will, crush all ones. now, the but

more selling has farmer get harvest a Brazil, the to more America, by Latin been little little helped it the bit In as the farmers there in more, a devaluation. you through volume. move So as bit start was

pressure saw we crush have that the beans getting we in and that margins. So easing helping

it's Europe, China, China pack. it have visibility in middle the we the around to lot don't spot the in very of ton, per be in little bit we so seems of be expect moment. but $XX at China, to it a a

to So little hand bit there. over it's a mouth

see little least, big back quarter, the bit the second then a I quarter, said, see up to going the other ADM, mostly, with the third if the at you general, moderation and a we will, for also into QX. in start correction provided we So of curve But by in areas. as soft U.S., coming a

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

you like I ask commentary margins, cetera, and former about seems specifically, bit and in margins the better about ethanol. ethanol a little your was like seems ethanol on in demand little different ethanol VCP. bit wanted Sweeteners VCP. talked and lower between And It a Starches to et it

the benefiting why and than ethanol front? different why also of Starches you X Sweeteners? And margins guess, that mills seeing on from clarify can diverged? is ethanol the VCP this, export So I specifically, And what more types you are

to by we results export stronger is and Yes, certified helped ethanol, because for sustainably Yes. certified that made sustainably demand reference get premium for were ethanol. we VCP a the

volumes So and that supported margins.

-- getting ethanol Salvator, in rest general, lot demand world. the ethanol a the very general, oxygenate, so of cheap In it's is from of a

exports So of north be are to gallons. X.X expected billion

the in plants demand blending and year produced It's of -- lot. the the domestically good. time which has So U.S. inside have is that just a this been the

always I are said plants the exothermic.

in a least. temperature, and a So that's time they of time a we produce the cold where drive lot,

during So those -- little will think now balance, we're very into more bit period and to going more industry margins plants. for hope year to And the we we miles summer maintenance little inventories exports expect into I the -- that that the balance a remain driving of whole better. little a will for come higher we the a come bit for to healthy. expect to But

comes Ben of Barclays. question from next Our Theurer

just of wanted simplification, business. Just optimization. to the it beginning it portfolio like the at as you're relates initiatives on to up you the doing some talked follow Nutrition within And Juan, about

through soft, you've it's impacted and the some obviously, here onetime of So somewhat items. looked by volatile as obviously and assets been the

the as think do take years' Nutrition issues want going some structure past you this downtime, and with how do et the plant want of business? about Where do to the think forward But Nutrition, you What to version be it, going you to cetera, animal, X human? X we contribution, to? How to should this? about call you it maybe is What's time? think X.X the in

if sequential even the is the taking now, year one-offs we of right the see improvement picture, of out a have we're had we Good Listen, lot you or question. that QX received Yes. in will. if you last

completely. them of Some

the Some to of they're our as of business supply, improve them, will. you to going continue reliability improve if the

able of the of headwinds revenue the through some term, of we in be you to I materials. would say, correction in see need that because short get will to the raw

of Specialty the some there at correct will, Nutrition day, Those corn things or soy emulsifiers. parts because that of either related tend moderate. to to to we you So the call what revenue they the were are or proteins related end they Ingredients, if so business, are

stuff demand a Listen, reshuffle over through ingredients that a lot is of culinary is business see that and doing. is emerging a there's not that business of time, of in plant-based to XXXX. is there that come but technologies, And and a from going that's in techniques there you're of exciting that a volume the demand revitalize shift And lot that the we're new industry will proteins. novel terms to going a perspective, that

that, that's Europe. To we in continue to in present or now, time, strong North whether it's flavor, in whether extent we flavor, something But in still long term, Right it's believe for the demand that America piece. see supply that Europe. be feel that. faster capitalize we And doing been correcting U.S. things can release those Europe, that. our we're better, in will constraints, we able to more But maybe has on than about and we the strongly

XXX% like biotics perspective, quarter. continue by have first Biotics On OP & excel. in increased Wellness the the Health to

where fibers very well. to and We're But fibers are the as incorporate of -- reduce world matter I in prognosis all over a very doing getting materials. more a positive very from has of are time, think perspective, That's trying sugar. headwinds trends our fats moving. we're diet nutrition fibers is and So that's a protein some us the but and competitive

And the be have of undervalued, if seen of on of achieve issues -- story lot then in in sectors there will, most just would when self-help, Animal the long the our probably about we're the Animal continue to in is term. terms I Because area you side, think P&L. in of a impacted returns potential. sector Nutrition to refinement right across will, you because you say the where some probably going there see there. given is doing But if protein that demand are and we the the are the Nutrition portfolio, more ability unevenness their to the Nutrition self-help Nutrition Animal the of

part other of some it's self-help. parts, In the in innovation more like more So sectors, it's driven.

America, There And well doing even are pieces very strong, like of the things where are that is the demand like Mexico. world is very to pieces exceptionally for go pet, if demand strong, are there where you us like to we it of bit supply some maybe parts more money. so fix America, are make like a in there little world, And becomes difficult need the to North where structurally like issues. maybe South

So we of recipes the are applying different world. the parts different to

complete if will, to the a more pipeline I a business, I But still more expect of very on the about Maybe conversion focus maybe forward, our a customers you to on a higher able to in fewer pipeline be think platforms, faster. it. we see fewer tend focused, going that past, be big execute to have maybe we with concentrated the a way That's percentage it pipeline. Nutrition

I Can I is -- complementary to on a offer but seen sense applies to comments the you think Nutrition Juan Nutrition, broader to cost in base I that complementary view the with evolution experiencing we which Juan's that regard is business fully in put view the just it that agree a portfolio, now the in we've wanted improvement I the of place, offer programs with also Animal and on benefits Animal quarter-on-quarter.

the is of observations Juan's more you basis, looking become to But a that specialty going-forward side will on see to a business its focused portfolio. on

is higher some produced. the focused, to beginning, at is a soy business partly become the to the are it's that products more component will alluded more mill part margin impacted a revenue fact for calculation the specialty Juan that platform focused. there to by commodity of As time, evolve that of Over the

XXXX. it business structure look as into think and well we forward I the margin -- we bodes that for of growth So

Steven Our of comes next from Haynes Stanley. question Morgan

follow-ups quick on Maybe just Nutrition. two

price about think down revenue That were the be I I your based the So volumes, prior on kind comments quarter? in organic volumes, slightly. some one. there your would of positive first guess, And your component, being was

you M&A is on recent of the then second full And that How the you of full the your in the much M&A? year, ahead are baking question of mentioned is into year contribution kind kind model profit from guide coming deal operating expectations.

Yes. Steven. Thank you,

headwinds less of even to M&As. in expect moderating mentioned some say and X categories. with So costs that The yet let I OP very revenue that. we the still the revenue, because X not me pleased contributed relative But our of that we specialty prices, before the are to quarter in and all commodity start-up despite first to M&As

growth full revenue We year. high expect the -- be in for of range digit to mid-single

probably profit that cost expect should -- than down OP given year-over-year. operating bit We a be be little do our to that to better

question other the there? was what So

Yes.

of other So Overall, of volume, East business Ingredients in of plant. generally to impacts we've But was exception specifically, question. Specialty up obviously, the hold and well have all volume seen performed The terms the business complementary a volume overall Decatur elements the that of our volume-wise. would the well. be,

a deterioration of a basis, you've the a a except to the volume So improvement it of you have volume. revenue for bit on business seen but general came seen when SI

Adam of next Our comes Goldman question Sachs. from Samuelson

parts different on a be poultry about supply questions. talked first, us where that in project sizable soy for we more two you the and got think later in as seem I improvement about you curves. world Maybe guess meal production. help really you I uptick doesn't maybe don't demand So the the Just ratios implied Most in year a the by specific? in outlook bit of year, the inclusion to forecasts can as

customers? just you your actually seeing us little getting where that feed a areas could bit from help the So on signal that or you're

question, unrelated this targeted and from, in And or the some the spend, for category then the in productivity also segments bit whether cost you $XXX unallocated that coming couple about about they're as I Would of if in where and million the the more love outlook really savings terms a an we are actions as could both specificity corporate maybe next operating of of years. think but the of the year areas to for you've next. think

so what all, of Adam, and realize, course, in early listen, to of need are the year, we think I QX. first Yes, predictions we you making sure. are on

So a period the We're this supplies. is going supplies industry, couple to a if years tight of transition ample will. you of for from

to that go we're little transition. that is here seeing is a uncovered, through you farmer if a will, we're going customer So base slow. selling very And that

still to poultry. growth of certain if you you will, or But seeing for, top it now the of On that pork. you trends will, unprofitable beef in have some in that, seemed and industry was bottomed is a territory, and proteins if parts have for

parts different the the whether that of world, Turkey, see other we of world. in in in Thailand, So it's in parts

that But I think issue effect. its the main is pricing doing is

but some to being still some in cooking is of of oil U.S. competition We We're oil trade more Brazil very used exporter into out flows we U.S., mills, competitive of So see oil, maybe soybean starting U.S. the exported maybe you the see changing. mill. the as see an coming -- more see becoming soybean in less

in customers, that, looking So we are And just the book. more excellence all will think looking be cover to of I U.S. in with year. capacity Brazil, oil drive very big XXX,XXX have What will during the year. that we RGD our With is soybean that of think crush the more we're our billion Ismael seeing mandate from margins I tons gallon determinant that, for a at we're coming X see the we for at biodiesel the shift profitability. will that with again, think

we're the the on drive But quite by actually Adam, the on excellence, Yes. encouraged for progress. --

important As Juan more challenges initiatives, supply be optimization, during and can X,XXX areas plant focus, and had also working of into business very but that effort than is in process grouped on on process or remarks, fulfillment, chain on working we've substantial we of they demand the the mentioned part themes which optimization, have Nutrition.

buckets these that working on. So the be would large we're

XXXX. about well. X/X at of least very the seen line we've of And progress for million $XXX we already have the sight And platform

this for we're in encouraged impacting XXXX excellence the that So ability I've outlined. drive just about the very measures of already

Kallo from Our Ben Baird. next comes of question

tax being you for next credit changing or dynamic demand a intensity carbon in year? think about the think factor U.S. oil about the soy tax of overall a blenders we producers over do credit the how and the Just to

the question. Yes. Ben, for Thank you,

you as of last of the tax that be addition at CORSIA. to And modeling year guidance end I the grid a 'XX tax the So administered to will know, will credit. Treasury. end on, at and transition by the $X CA issued will blenders expire think, this They use production U.S. credit in of allow the

successful including Of course, We're officially we being on in the We're that. favor in grid ruling EPA delayed still included. grid.

been doing equation of this to lot that we make have sure encouraging of out we government remove advocacy a uncertainty that here. officials think the in I So

the crop-based create biofuels to difficult the that I without very trying in generate price mechanism begin credits a think look volume. coming -- locking will discovery a transition will months, of XXXX guidance whether as participants to are

are for So needs that providing important to to the expected. investments think in regulatory are on I come and those time think important industries very as that's I clarification to investing U.S., an are These that happen. and certainty fruition that

Just a you follow-up fats with them waste diesel materials? in to other terms are transitioning of there. renewable using the seeing What refiners, or producers

Yes.

think oil I in being with demand. a palm cope the there able is and flat reality is -- that to production that not listen, world

green And oil. they know oil inventory to So be lot industry find. kind meet gather was we that component. to trying have of a soybean there feedstock of which met -- of U.S. of can that course, used feedstocks, important the every to an is was going diesel to and renewable with is the cook But of

are the still an said, gallon The have billion supply, much to is of cook grow year. you has this going going world oil U.S. around a used inventory imported to X I be to more industry as that, enough is because how to capacity the going not but lot

that used XX% to we their So we used oil percentage still XX% temporary used be. the that again, from soybean maybe we the still these cook to oil. we expect But of imports are will of expect recover adjusting to

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

just I follow-up. a had

So us the also, of roughly from Green showed, million had as the we volume that? contribution now? couple interest loss. you are example, little that how you can JV, noncontrolling came the Well, Bison believe $XX among I others, the a help bit guess, And So into for the you understand look process loss. growth I a items, much

So which how JV a the that income do a was to point line? turn profitable for return -- at Bison net that Green NCI I to much, guess, And of you into it JV? so basis, expect on

were my the or It crush in maybe with was X% increase. the across that was our Salvator, plants also were Spiritwood the to coming I coming give in in top have you during But of Part that what part I we pleased improvements first of and of mind. general Ukraine increase at of quarter. was oilseeds online, Paraguay footprint. in Part crush. Yes. that volumes very

in at the happened different all points quarter. that So

part I of don't what of have what a the to So full quarter. recollection happened any at volume

joint contributor during be XXXX. Bison Green will The venture profit a to

It's to up. very get full going ramping to it's capacity So soon.

of the quarter, my will to it first what meaningful be have don't I honest. top was on So a contributor. be contribution head

question Research. Our Heather comes from next Heather Jones Jones of

that this or exactly ask the sustainability you're the dry what what's doing proactively Just quickly driving as to more wanted related ahead getting wondering doubling Just to mills like stringent far acreage, that. of requirements? really as regime your of sourcing? And EU for deforestation region is carb

Yes.

providing X to decarbonize of some also a Actually, awaiting low our but intensity a products driven ADM, we ourselves, side we characteristics of by that by of also for goals the Scope and either customers, partly emissions from our out we need a XX decarbonization commanding have Strive solutions, some the there. carb customers premium whole need decarbonization part has carbon that in Heather, across by have our strategy, strategy. our So driven

go we wells, So we're say on our doing? well capacity. to increasing We wells, to what to are be capture increase let's sequestration. are wells X working but We're X significantly experimental X X from X to carbon going and able going our so well,

And have been years last XX let me of we've that X.X COX the operating. remind captured million already tons you, we in

successful. has So that been

that sequestration carbon we're to mills is and doing we capture are to dry For our building specifically, pipelines units indicator. the bring what

pipeline X we for are looking the and other that for ongoing, been solutions We the has dry project, have mills.

So is that's what happening.

remembering the The what... Heather, second part not I'm question, exactly of

on wondering just region. the was I

Oh, yes.

in wondering that what's Or standards? is the Just all like Yes, doubling that. anticipation more carb on stringent regime growth? wondering, driving voluntary acreage, deforestation the of region market-driven is EU just or it

continue their also to of excitement we is There people side customer for farmer answer I would Yes. these side contracts excitement have as sign on the practices, there more sides. Scope of both in an lot terms adhere all to say to, of a demand these from to on pull but the again, need to X. is there's

have So and this those goals setting we and been those been been have -- increasing goals, beating has goals. we

team and and Europe to Latin the to we world. job. continue activities demand to an been honest, that expanded doing be see And have the we America, for excellent has these Now around

program So is perceived that in program this the there. I think the as world leading

we further this At have currently time, no questions.

any for I'll remarks. back So further Luciano to hand Juan

and Okay. have Thank in for joining for day. great and you, a you. Thank your ADM, interest everybody, today us

Thank you.

Thank you for joining today's call.

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