41c15c52f33c86f898fe091b05dfd45a511ceff5bb4166de5606cd5796d3f8d3

ADM is a global leader in agricultural supply chain management and processing, offering a diverse range of products and solutions across three main business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company is involved in the origination, merchandising, transportation, and storage of agricultural raw materials, and processes oilseeds into vegetable oils and protein meals **[0000007084-24-000052_adm-20240331.htm:33]** **[0000007084-24-000051_adm-20231231.htm:130]** **[0000007084-24-000009_adm-20231231.htm:126]** **[0000007084-24-000051_adm-20231231.htm:9]** **[0000007084-24-000009_adm-20231231.htm:8]**. ADM also converts corn and wheat into sweeteners, starches, syrups, glucose, and dextrose, and produces industrial alcohol **[0000007084-24-000051_adm-20231231.htm:10]** **[0000007084-24-000009_adm-20231231.htm:9]** **[0000007084-24-000051_adm-20231231.htm:131]** **[0000007084-24-000009_adm-20231231.htm:127]**. Additionally, ADM provides plant-based proteins, natural flavors, probiotics, and animal health and nutrition products **[0000007084-24-000051_adm-20231231.htm:10]** **[0000007084-24-000009_adm-20231231.htm:9]** **[0000007084-24-000051_adm-20231231.htm:131]** **[0000007084-24-000009_adm-20231231.htm:127]**.

1. **Ag Services and Oilseeds** - Manages the origination, merchandising, transportation, and storage of agricultural raw materials, and processes oilseeds into vegetable oils and protein meals. Supplies peanuts and peanut-derived ingredients and engages in structured trade finance activities **[0000007084-24-000052_adm-20240331.htm:33]** **[0000007084-24-000051_adm-20231231.htm:130]** **[0000007084-24-000009_adm-20231231.htm:126]** **[0000007084-24-000051_adm-20231231.htm:9]** **[0000007084-24-000009_adm-20231231.htm:8]**.
2. **Carbohydrate Solutions** - Converts corn and wheat into products such as sweeteners, starches, syrups, glucose, and dextrose, and produces alcohol for industrial use. Involved in carbon capture and sequestration initiatives **[0000007084-24-000051_adm-20231231.htm:10]** **[0000007084-24-000009_adm-20231231.htm:9]** **[0000007084-24-000051_adm-20231231.htm:131]** **[0000007084-24-000009_adm-20231231.htm:127]**.
3. **Nutrition** - Provides ingredients and solutions including plant-based proteins, natural flavors, and probiotics, and processes and distributes animal health and nutrition products **[0000007084-24-000051_adm-20231231.htm:10]** **[0000007084-24-000009_adm-20231231.htm:9]** **[0000007084-24-000051_adm-20231231.htm:131]** **[0000007084-24-000009_adm-20231231.htm:127]**.

3fa677adf6af7b21315a2fafe084c9832834695ecae8445b1382f195cadf82b4

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

23d12a58fe2d36d2338612ae2547b773ba8fcab6821a1f61ec44c97d888fcbe3

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Ag Services and Oilseeds** ($ million) | **20,084**  **[0000007084-23-000010_adm-20221231.htm:79]**  | **18,579**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **19,844**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **16,479**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **17,219**  **[0000007084-24-000017_adm-20240331.htm:10]** **[0000007084-24-000017_adm-20240331.htm:28]**  | **17,333**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **15,089**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Ag Services | N/A | **11,695**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **13,366**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **10,198**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **11,197**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **11,746**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **9,653**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Crushing | N/A | **3,683**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **3,480**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **3,352**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **3,327**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **2,850**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **2,869**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Refined Products and Other | N/A | **3,201**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **2,998**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **2,929**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **2,695**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **2,737**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **2,567**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| **Carbohydrate Solutions** ($ million) | **3,490**  **[0000007084-23-000010_adm-20221231.htm:79]**  | **3,537**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **3,381**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **3,325**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **2,683**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **2,894**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **2,908**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Starches and Sweeteners | N/A | **2,737**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **2,475**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **2,448**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **2,156**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **2,211**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **2,192**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Vantage Corn Processors | N/A | **800**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **906**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **877**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **527**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **683**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **716**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| **Nutrition** ($ million) | **1,909**  **[0000007084-23-000010_adm-20221231.htm:79]**  | **1,853**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **1,853**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **1,784**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **1,836**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **1,908**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **1,831**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Human Nutrition | N/A | **936**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **966**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **900**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **964**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **1,061**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **1,004**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| - Animal Nutrition | N/A | **917**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **887**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **884**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **872**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **847**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **827**  **[0000007084-24-000054_adm-20240930.htm:40]**  |
| **Other Business** ($ million) | **99**  **[0000007084-23-000010_adm-20221231.htm:79]**  | **103**  **[0000007084-23-000017_adm-20230331.htm:33]**  | **112**  **[0000007084-23-000028_adm-20230630.htm:36]**  | **107**  **[0000007084-23-000039_adm-20230930.htm:38]**  | N/A | **109**  **[0000007084-24-000017_adm-20240331.htm:10]**  | **113**  **[0000007084-24-000026_adm-20240630.htm:40]**  | **109**  **[0000007084-24-000054_adm-20240930.htm:40]**  |

0d81e5814e5555dfdf601320df67fcf29b00f3f9fef5e0e888216820cc1707b1

f05f760cd81196a7c485fc2a363527917bb8704b207bdc0511cd761f44c71c6a

| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| Oilseeds Volume | **8,565** **[0000007084-23-000004_adm-ex991_20221231xq4.htm:6]** | **8,627** **[0000007084-23-000017_adm-20230331.htm:33]** | **8,783** **[0000007084-23-000028_adm-20230630.htm:36]** | **8,648** **[0000007084-23-000039_adm-20230930.htm:38]** **[0000007084-23-000037_adm-ex991_2023930xq3.htm:5]** | **8,841** **[0000007084-24-000010_adm-ex991_20231231xq4.htm:10]** | **9,387** **[0000007084-24-000017_adm-20240331.htm:37]** | **8,872** **[0000007084-24-000026_adm-20240630.htm:40]** | **8,410** **[0000007084-24-000054_adm-20240930.htm:40]** |
| Corn Volume | **4,589** **[0000007084-23-000004_adm-ex991_20221231xq4.htm:6]** | **4,394** **[0000007084-23-000017_adm-20230331.htm:33]** | **4,448** **[0000007084-23-000028_adm-20230630.htm:36]** | **4,507** **[0000007084-23-000039_adm-20230930.htm:38]** | **4,718** **[0000007084-24-000010_adm-ex991_20231231xq4.htm:10]** | **4,407** **[0000007084-24-000017_adm-20240331.htm:37]** | **4,482** **[0000007084-24-000026_adm-20240630.htm:40]** | **4,943** **[0000007084-24-000054_adm-20240930.htm:40]** |
| Total Processed Volumes | **13,154** **[0000007084-23-000004_adm-ex991_20221231xq4.htm:6]** | **13,021** **[0000007084-23-000017_adm-20230331.htm:33]** | **13,231** **[0000007084-23-000028_adm-20230630.htm:36]** | **13,155** **[0000007084-23-000039_adm-20230930.htm:38]** | **13,559** **[0000007084-24-000010_adm-ex991_20231231xq4.htm:10]** | **13,794** **[0000007084-24-000017_adm-20240331.htm:37]** | **13,354** **[0000007084-24-000026_adm-20240630.htm:40]** | **13,353** **[0000007084-24-000054_adm-20240930.htm:40]** |

ea4e3bbea75d99abc54c0edbd114155c9203137fbb3bce89fe149fdefea2a3b9

1. Given the material weaknesses identified in your internal controls and financial reporting, can you elaborate on the specific steps you are taking to remediate these issues and ensure integrity moving forward?
2. You've lowered your full year 2024 adjusted earnings per share guidance due to internal operational challenges and slow market demand; can you provide more detail on these challenges and how you plan to address them?
3. With regulatory uncertainty impacting canola crush margins and delays in new nutrition projects due to customer cost management, what strategies are you implementing to mitigate these headwinds and drive growth in these areas?
4. Considering your plans to optimize the portfolio through targeted divestitures or rationalizations, can you specify which areas or assets you're evaluating and how these actions will enhance shareholder value?
5. As you focus on capital allocation and mentioned capital expenditures of approximately $1.5 billion, how are you balancing necessary maintenance investments with opportunities in digital enhancements and operational improvements in a challenging market environment?

27ba1ab1703ad3460858ca9ac50cb96cc43833d14083a6a8bdaf891f85e272ef

Oilseeds Volume

Corn Volume

05bdf02383fb2e8a1b918ab8b96e27d8beb3215689f69552bd7d7bd1325ada8e

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

73a66b77e5b958a9a562f4d76db69568ca82228265f836946bd7352a3c323289

6a1825bc703b1e070aecf0d5db142c4d71aa42588c5bd8288d4e7bf0da0b646f

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Adjusted Earnings Per Share (EPS):** Lowered to **$4.50 to $5.00 per share**  **[ADM_3410619_5]** .
  2. **Corporate Costs:** Expected to be **$1.7 billion to $1.8 billion**  **[ADM_3410619_5]** .
  3. **Corporate Net Interest Expense:** **$475 million to $525 million**  **[ADM_3410619_5]** .
  4. **Capital Expenditures:** Approximately **$1.5 billion**  **[ADM_3410619_5]** .
  5. **Effective Tax Rate:** **20% to 22%**  **[ADM_3410619_5]** .
  6. **Leverage Ratio and Depreciation & Amortization (D&A):** Unchanged  **[ADM_3410619_5]** .
  7. **Reinsurance Proceeds:** **$35 million** and **$50 million** for Decatur East and West incidents, respectively  **[ADM_3410619_4]** **[ADM_3410619_3]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Q3 2024 and FY 2024
- **Guidance:**
  1. **Earnings Per Share (EPS):** Unchanged for FY 2024  **[ADM_3394994_7]** .
  2. **Soybean Crush Margins:** **$35 to $60 per metric ton**  **[ADM_3394994_5]** .
  3. **Nutrition Segment:** Year-over-year improvement expected  **[ADM_3394994_8]** .
  4. **Cost Savings:** **$500 million** by end of 2024  **[ADM_3394994_6]** .
  5. **Capital Expenditures (CapEx):** **$700 million**  **[ADM_3394994_5]** **[ADM_3394994_13]** .
  6. **Ethanol Demand:** Solid demand expected  **[ADM_3394994_6]** .
  7. **Carbohydrate Solutions:** Strong performance anticipated  **[ADM_3394994_1]** .
  8. **Animal Nutrition:** Improvement continues  **[ADM_3394994_8]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** Q2 2024 and FY 2024
- **Guidance:**
  1. **Earnings Per Share (EPS):** Unchanged  **[ADM_3381506_4]** .
  2. **Corporate Net Interest Expense:** Raised to **$525 million**  **[ADM_3381506_4]** .
  3. **Capital Expenditures:** Aligned with depreciation and amortization  **[ADM_3381506_4]** .
  4. **Share Repurchases:** Additional **$1 billion** planned  **[ADM_3381506_4]** .
  5. **Nutrition Segment:** Sequential improvement expected  **[ADM_3381506_5]** .
  6. **Ag Services and Oilseeds (AS&O):** Lower than prior year  **[ADM_3381506_5]** .
  7. **Carbohydrate Solutions:** Higher than prior year  **[ADM_3381506_5]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Adjusted Earnings Per Share (EPS):** **$5.25 to $6.25 per share**  **[ADM_3377641_7]** .
  2. **Global Soybean Crush Margins:** **$35 to $60 per metric ton**  **[ADM_3377641_7]** .
  3. **Capital Expenditures:** Aligned with depreciation and amortization  **[ADM_3377641_7]** .
  4. **Share Repurchases:** **$2 billion** planned  **[ADM_3377641_7]** .
  5. **Segment Expectations:**
     - **AS&O:** Lower than prior periods  **[ADM_3377641_7]** .
     - **Carbohydrate Solutions:** Strong but slightly lower than 2023  **[ADM_3377641_7]** .
     - **Nutrition:** Mid-single-digit revenue growth expected  **[ADM_3377641_8]** .
  6. **Vegetable Oil Demand:** Growth expected  **[ADM_3377641_7]** .

7c9b3bec2d825c6634bc686c8e237059fc7e3cc65350679159ab4363c637c9ad

| Name                      | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|---------------------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Benjamin I. Bard          | Vice President and Chief Integrity Officer                               | December 2023      | Benjamin I. Bard is the **Vice President and Chief Integrity Officer** at ADM, a position he has held since **December 2023**. Prior to this role, he served as the **Vice President and Chief Audit Executive** from **June 2021**  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** .     |
| Camille Batiste           | Senior Vice President, Global Supply Chain and Procurement               | May 2021           | Camille Batiste has been serving as the **Senior Vice President, Global Supply Chain and Procurement** at ADM since **May 2021**. She was previously the President of Global Supply Chain from January 2020 to May 2021  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** .                  |
| Christopher M. Cuddy      | Senior Vice President; President, Carbohydrate Solutions business unit   | March 2015         | Christopher M. Cuddy has been serving as **Senior Vice President of the Company since May 2015** and as **President of the Carbohydrate Solutions business unit since March 2015**. He has been with ADM for **25 years**  **[0000007084-24-000009_adm-20231231.htm:153]** **[0001193125-24-091968_d540412ddef14a.htm:41]** .                |
| Pierre-Christophe Duprat  | President, International Corn Milling                                    | August 2022        | Pierre-Christophe Duprat has been serving as **President, International Corn Milling** at ADM since **August 2022**. He was previously President of BioSolutions from August 2022 to January 2024  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** .                                        |
| Kristy Folkwein           | Senior Vice President; Chief Technology Officer                          | January 2020       | Kristy Folkwein has been serving as **Senior Vice President** of ADM since **March 2018** and took on the role of **Chief Technology Officer** in **January 2020**. She was previously the **Chief Information Officer**  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** **[0000007084-23-000010_adm-20221231.htm:129]** .               |
| Molly Strader Fruit       | Vice President, Corporate Controller                                     | March 2021         | Molly Strader Fruit has been serving as the **Vice President, Corporate Controller** at ADM since **March 2021**. She was previously the Vice President of Global Financial Services from May 2019 to March 2021  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** .                         |
| Leticia Goncalves         | President, Precision Fermentation and ADM Ventures                       | November 2023      | Leticia Goncalves is the **President of Precision Fermentation and ADM Ventures** at ADM since **November 2023**. She was previously President of Global Foods from March 2021 to November 2023  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** .                                          |
| Regina Bynote Jones       | Senior Vice President, General Counsel and Secretary                     | September 5, 2023  | Regina Bynote Jones has been serving as the **Senior Vice President, General Counsel, and Secretary** at ADM since **September 5, 2023**. She was previously the Chief Legal Officer at Baker Hughes  **[0001193125-24-091968_d540412ddef14a.htm:45]** **[0000007084-24-000051_adm-20231231.htm:151]** .                                      |
| Domingo Lastra            | President, South America                                                 | July 2017          | Domingo Lastra has been serving as the **President, South America** at ADM since **July 2017**  **[0000007084-24-000051_adm-20231231.htm:151]** **[0000007084-24-000009_adm-20231231.htm:153]** .                                                                                                                                          |
| Juan R. Luciano           | Chair of the Board of Directors; Chief Executive Officer and President   | January 2015       | Juan R. Luciano has been with ADM since **2011**. He became the **Chair of the Board of Directors** in **January 2016** and has served as the **Chief Executive Officer and President** since **January 2015**  **[0000007084-24-000051_adm-20231231.htm:151]** **[0001193125-24-091968_d540412ddef14a.htm:18]** **[0001193125-23-070173_d14194ddef14a.htm:20]** .                        |
| Rodolfo Luterman          | Vice President and Corporate Treasurer                                   | December 2023      | Rodolfo Luterman has been serving as the **Vice President and Corporate Treasurer** at ADM since **December 2023**. He was previously the Assistant Treasurer from **July 2022 to December 2023**  **[0000007084-24-000051_adm-20231231.htm:151]** .                                           |
| Gary McGuigan             | President, Asia Pacific                                                  | December 2023      | Gary McGuigan has been serving as **President, Asia Pacific since December 2023**. He was previously the Chief Risk Officer from November 2021 to January 2024  **[0000007084-24-000051_adm-20231231.htm:152]** .                                                                               |
| Nuria Miguel              | Senior Vice President and Chief Science Officer                          | August 2023        | Nuria Miguel has been serving as the **Senior Vice President and Chief Science Officer** at ADM since **August 2023**. She was previously the Vice President of Human and Animal Nutrition  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .                                               |
| Gregory A. Morris         | Senior Vice President; President, Ag Services & Oilseeds business unit   | July 2019          | Gregory A. Morris has been a **Senior Vice President** at ADM since **November 2014** and has served as the **President of the Ag Services & Oilseeds business unit** since **July 2019**  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .                                                |
| Dermot O'Grady            | Senior Vice President, Global Operations                                 | November 2023      | Dermot O'Grady has been serving as the **Senior Vice President, Global Operations** at ADM since **November 2023**. He was previously the Vice President of Oilseeds Operations - EMEA  **[0000007084-24-000051_adm-20231231.htm:152]** .                                                      |
| Ian Pinner                | Senior Vice President; President, Nutrition business unit and Chief Sales and Marketing Officer | November 2023 | Ian Pinner has been a **Senior Vice President** at ADM since **January 2020**. He currently serves as the **President of the Nutrition business unit and Chief Sales and Marketing Officer**  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .                                             |
| Ismael Roig               | Senior Vice President; Interim Chief Financial Officer                   | January 2024       | Ismael Roig has been a **Senior Vice President** at ADM since **December 2015**. He was appointed as the **Interim Chief Financial Officer** in **January 2024**  **[0000007084-24-000051_adm-20231231.htm:152]** **[0001193125-24-091968_d540412ddef14a.htm:42]** .                                                                          |
| Joseph D. Taets           | Senior Vice President; President, Animal Nutrition                       | February 2024      | Joseph D. Taets has been a **Senior Vice President** at ADM since **August 2011**. He currently serves as the **President of Animal Nutrition**, a position he has held since **February 2024**  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .                                           |
| Jon Turney                | President, EMEA Oilseeds and Chief Risk Officer                          | January 2024       | Jon Turney has been serving as the **President, EMEA Oilseeds and Chief Risk Officer since January 2024**. He was previously the Vice President, Oilseeds Crush EMEA  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .                                                                      |
| Thuy-Nga T. Vo            | Chief Counsel, Corporate, Securities, and Mergers and Acquisitions and Assistant Secretary | January 2017 | Thuy-Nga T. Vo has been serving as **Chief Counsel, Corporate, Securities, and Mergers and Acquisitions and Assistant Secretary** at ADM since **January 2017**  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .                                                                           |
| Jennifer L. Weber         | Senior Vice President, Chief People and Diversity Officer                | August 2020        | Jennifer L. Weber has been serving as the **Senior Vice President, Chief People and Diversity Officer** at ADM since **August 2020**. She was previously the Executive Vice President of Human Resources at Lowe’s Companies, Inc.  **[0000007084-24-000009_adm-20231231.htm:154]** **[0000007084-24-000051_adm-20231231.htm:152]** .       |
| Monish Patolawala         | Executive Vice President and Chief Financial Officer                     | August 1, 2024     | Monish Patolawala joined ADM as **Executive Vice President and Chief Financial Officer** effective **August 1, 2024**. He was previously President and Chief Financial Officer of 3M Company  **[0000007084-24-000051_adm-20231231.htm:152]** **[0001225208-24-007768_xslF345X02/doc3.xml:0]** **[ADM_3400448_0]** .                                         |
| David R. McAtee II        | Board Member, appointed to the Nominating and Corporate Governance Committee and the Compensation and Succession Committee | November 1, 2024 | David R. McAtee II was elected as an independent director to the Board of Directors of ADM on **November 1, 2024**. He was appointed to serve on both the Nominating and Corporate Governance Committee and the Compensation and Succession Committee  **[0001193125-24-252151_d885991d8k.htm:1]** . |

e7fa174254069f73db645038d9e9a45ea8c73e74baa54c9222a1aecc5fbf48db

**Annual guidance for FY 2024:**
- **Adjusted EPS**: $4.50–$5.00  **[ADM_3410619_5]**  (lowered from prior guidance “unchanged for FY 2024”  **[ADM_3394994_7]** )  
- **Capital Expenditures**: ~$1.5B  **[ADM_3410619_5]**  (raised from $700M  **[ADM_3394994_5]** **[ADM_3394994_13]** )  
- **Corporate Costs**: $1.7B–$1.8B  **[ADM_3410619_5]**  (no prior guidance)  
- **Corporate Net Interest Expense**: $475M–$525M  **[ADM_3410619_5]**  (no prior guidance)  
- **Effective Tax Rate**: 20%–22%  **[ADM_3410619_5]**  (no prior guidance)  
- **Leverage Ratio and Depreciation & Amortization (D&A)**: Unchanged  **[ADM_3410619_5]**  (no prior guidance)  
- **Reinsurance Proceeds**: $35M and $50M for Decatur East and West incidents  **[ADM_3410619_4]** **[ADM_3410619_3]**  (no prior guidance)  

de29dbd12e205be6fc3e7512f65c98801eb4b3aad6839f26c2cd7594840f1817

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | November 5, 2014  **[0000007084-24-000054_adm-20240930.htm:62]**        | August 7, 2019  **[0000007084-24-000054_adm-20240930.htm:62]**          |
| End Date/Duration        | December 31, 2019  **[0000007084-24-000054_adm-20240930.htm:62]**       | December 31, 2024  **[0000007084-24-000054_adm-20240930.htm:62]**       |
| Total additional amount  | 100,000,000 shares  **[0000007084-24-000054_adm-20240930.htm:62]**      | 100,000,000 shares  **[0000007084-24-000054_adm-20240930.htm:62]**      |
| Remaining authorization  | N/A                        | 14.8 million shares  **[0000007084-24-000054_adm-20240930.htm:62]** **[0000007084-24-000054_adm-20240930.htm:54]**  |
| Details                  | Initial program  **[0000007084-24-000054_adm-20240930.htm:62]**         | Extended program  **[0000007084-24-000054_adm-20240930.htm:62]** **[0000007084-24-000054_adm-20240930.htm:54]**     |

64f36ebd8ef7f371b2148f0d8d855092d2b0f40e7248d3b4b841705a0b4bdf1f

United States

Switzerland

Cayman Islands

Brazil

Mexico

Germany

Other Foreign

Canada

United Kingdom

Total Revenue

f5bb90929b16e57aa0604252a87c6fccf02ffb482530af1588d730735260f790

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1930       | Present  | Current auditor   |
```
Start Date is cited from.  **[0000007084-24-000009_adm-20231231.htm:144]**

9801e2e225b4d4ea7716dca406c2b048433e87dd6633016bbb52c6be5711c3bd

c988063ddfd08d219450982920c901713d3a5f1a98dfe8f35510d319792feaa8

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $19.937 billion (-8% YoY)  **[0000007084-24-000054_adm-20240930.htm:2]** **[0000007084-23-000039_adm-20230930.htm:1]**   
- Ag Services and Oilseeds: $15.089 billion (-8% YoY)  **[0000007084-24-000054_adm-20240930.htm:30]** **[0000007084-23-000039_adm-20230930.htm:31]**   
- Carbohydrate Solutions: $2.908 billion (**-13%** YoY)  **[0000007084-24-000054_adm-20240930.htm:30]** **[0000007084-23-000039_adm-20230930.htm:31]**   
- Nutrition: $1.831 billion (+3% YoY)  **[0000007084-24-000054_adm-20240930.htm:30]** **[0000007084-23-000039_adm-20230930.htm:31]**   
- Net Income: $18 million (**-98%** YoY)  **[0000007084-24-000054_adm-20240930.htm:2]** **[0000007084-23-000039_adm-20230930.htm:1]**   
- EPS (Diluted): $0.07 (**-95%** YoY)  **[0000007084-24-000054_adm-20240930.htm:2]** **[0000007084-23-000039_adm-20230930.htm:1]**   

0829601e4d785c5bf911afb0102e39fb31d15e12a0115dabf94dcd322ee3cfda

244ce9b7165e2bd7a3f5761f463b3ffdd1d930477c8493628aa944e330fa97cb

Oilseeds Processed Volumes (thousand metric tons)

Corn Processed Volumes (thousand metric tons)

Total Processed Volumes (thousand metric tons)

e8d519179134a17586ae51c6a5ac1345c0ff1e8f6217452591f9c6c50d5222f3

1. **Crush Margins Outlook**  
   **Q:** How are crops and farmer selling impacting crush margins?  
   **A:** Crush margins improved in Brazil due to better farmer selling and the devaluation of the real, while Argentina faces uncertainty from strikes. ADM operated in Q1 at the higher end of its margin range but expects to move to the lower end in Q2 and Q3, recovering in Q4 with the U.S. crop. Increased soybean oil demand from new renewable green diesel plants adding **0.5 million tons** and Brazil's biodiesel mandate increasing by another **0.5 million tons** will support margins later in the year.  **[ADM_3381506_7]** 

2. **Nutrition Business Strategy**  
   **Q:** What are your plans for the Nutrition business going forward?  
   **A:** ADM sees sequential improvement by removing one-offs and focusing on fewer platforms and customers. Short-term headwinds in revenue due to raw material corrections are expected, but there's strong long-term belief in plant-based proteins. Flavor demand is strong, and biotics operating profit increased by **100%** in Q1. Animal Nutrition offers potential, with self-help efforts showing in the P&L, though some refinement of the portfolio may occur. The business aims to be more specialty-focused and higher-margin, which bodes well for growth into 2025.  **[ADM_3381506_13]** 

3. **Soymeal Demand & Cost Savings**  
   **Q:** Can you clarify the expected improvement in soymeal demand and cost savings?  
   **A:** Despite current forecasts, ADM expects growth in poultry sectors globally, indicating increased soymeal demand later in the year. Pricing effects and changing trade flows support this outlook, with **1 billion gallons** more renewable diesel capacity in the U.S. and **500,000 tons** more soybean oil demand from Brazil's biodiesel mandate being key factors for crush margins. On cost savings, over **1,200 initiatives** are underway in process optimization, with about **one-third** of the **$500 million** target already in sight for 2024.  **[ADM_3381506_15]** 

4. **Tax Credit Transition Impact**  
   **Q:** How will the blenders tax credit changing to producers tax credit affect soy oil demand?  
   **A:** The $1 blenders tax credit will expire at the end of 2024, transitioning to a production tax credit administered by the Treasury. Inclusion of GREET CI modeling is favored, but the EPA's delayed ruling creates uncertainty. Without guidance on crop-based biofuels generating credits, price discovery becomes difficult, affecting 2025 volumes. ADM is advocating for clarity to support industry investments.  **[ADM_3381506_16]** 

5. **Biodiesel Margins & Used Cooking Oil**  
   **Q:** What is pressuring biodiesel margins and how are regions affected?  
   **A:** North American refining margins are lower due to imports of used cooking oil impacting biodiesel margins. In contrast, EMEA results were higher, capitalizing on strong biodiesel margins. South America saw stronger biodiesel and packaged margins, supported by Brazil increasing its biodiesel mandate to B14, adding **0.5 million tons** per year of soybean oil demand. Similar dynamics are expected in Q2.  **[ADM_3381506_9]** 

6. **Ethanol Margins & Exports**  
   **Q:** Why are ethanol margins diverging, and what's the export outlook?  
   **A:** VCP benefited from stronger export demand for sustainably certified ethanol, which commands a premium. Ethanol is a cheap oxygenate, with exports expected to exceed **1.5 billion gallons**. Domestic blending demand is good, and inventories are expected to balance as plants enter maintenance and driving miles increase over summer, improving margins.  **[ADM_3381506_12]** 

7. **Decatur East Plant Restart**  
   **Q:** What is the timeline for the Decatur East plant restart?  
   **A:** Significant activity is ongoing, with expectations for the plant to be operational in Q4. Headwinds in the Nutrition segment, particularly Specialty Ingredients, due to this downtime will persist through the year.  **[ADM_3381506_10]** 

8. **Renewable Diesel Feedstocks**  
   **Q:** How are renewable diesel producers adjusting feedstock usage?  
   **A:** With flat palm oil production, the U.S. renewable diesel industry relies on multiple feedstocks, including soybean oil. While used cooking oil imports have increased, they won't suffice to meet the additional **1 billion gallons** of capacity this year. ADM expects soybean oil's share to recover from **30% to 40%**.  **[ADM_3381506_17]** 

9. **Green Bison JV Contribution**  
   **Q:** What is Green Bison’s contribution to volumes and profits?  
   **A:** ADM's crush volumes increased by **9%** in Q1, partly due to Spiritwood (Green Bison) coming online, as well as improvements elsewhere. The Green Bison JV will contribute to profit in 2024, ramping up to full capacity soon.  **[ADM_3381506_18]** 

10. **Carbohydrate Solutions Outlook**  
    **Q:** Can you discuss volume recovery in Starches and Sweeteners?  
    **A:** ADM sees strong demand and good margins across all segments, benefiting from lower chemical and energy prices and better operations. Sweeteners and Starches contracts are satisfactory, with strong exports to Mexico and other countries. Q2 is expected to be better than last year, though ethanol remains uncertain.  **[ADM_3381506_8]** 

11. **Sustainability Initiatives**  
    **Q:** What's driving the doubling of your regen acreage?  
    **A:** Both farmer interest and customer demand for sustainability practices are driving the increase. ADM continues to sign contracts, expanding the program to Europe and Latin America. The program is seen as a leading initiative globally.  **[ADM_3381506_19]** 

a282bbb4f240f0c3f77b08826cd78381571202170060d9ed3a211934a7e20304

- **ADM anticipates strong global soybean meal demand**, driven by recovering economies in Southeast Asia and favorable protein margins for poultry, which is expected to support the Ag Services and Oilseeds segment.  **[ADM_3377641_16]**
- **The company's capacity expansions**, such as the Marshall, Minnesota starch facility and new crush capacity in Brazil, are expected to contribute to growth in 2024 and beyond.  **[ADM_3377641_16]**
- **ADM expects its Nutrition segment to return to growth in 2024 and 2025** due to simplification efforts and portfolio optimization, enhancing overall company performance and shareholder value.  **[ADM_3377641_16]** **[ADM_3377641_17]**

5a93c91f7ec6737e64d57ebb192787a23e6655e6c41a952856966ca6406bd434

- **New CFO Monish Patolawala is implementing strong measures to improve financial integrity, drive cost savings, optimize capital allocation, and increase returns.**  **[ADM_3410619_14]**
- **Despite challenges, the Health & Wellness segment is showing strong growth, with probiotics revenue up 14% year-over-year, and even higher growth in operating profit.**  **[ADM_3410619_9]**
- **ADM expects high single-digit volume growth in crush, supported by the addition of the new Spiritwood facility running at full capacity.**  **[ADM_3410619_18]**

b48ee408359d86a5ac4517530f6b8f4ed3d34e0b8aaa3c758e5a4fda5d581c1f

1. **2024 Earnings Outlook and Nutrition**  
   **Q:** Outlook for 2024 earnings and Nutrition growth?  
   **A:** Management expects **2024 earnings to be lower than 2023 but still strong**, with margins moderating yet remaining above historical averages.  **[ADM_3377641_10]**  They foresee potential for growth in the Nutrition segment, which faced challenges in 2023 but is expected to recover in 2024 and progress toward **2025 targets**.  **[ADM_3377641_10]** 

2. **2025 Earnings Growth**  
   **Q:** Is 2024 earnings the trough before growth in 2025?  
   **A:** Management anticipates **2024 to be a down year versus 2023**, but expects **2025 to improve over 2024**, expressing optimism about achieving and exceeding the **2025 earnings targets set in 2021**.  **[ADM_3377641_12]** 

3. **EPS Target of $6–$7 by 2025**  
   **Q:** What will drive EPS growth to $6–$7 by 2025?  
   **A:** Key drivers include recovery in soybean meal demand leading to improved crush margins, growth in Carbohydrate Solutions through decarbonization and Biosolutions, and a return to growth in the Nutrition segment.  **[ADM_3377641_16]**  They are confident in achieving and surpassing the **$6–$7 EPS target by 2025**.  **[ADM_3377641_16]** 

4. **Soybean Crush Margins**  
   **Q:** Details on soybean crush margins outlook?  
   **A:** Management expects global soybean crush margins to be between **$35 and $60 per ton**, lower than last year's margins.  **[ADM_3377641_11]**  They believe margins have already priced in increased soybean availability and see demand for soybean meal recovering due to lower prices.  **[ADM_3377641_11]** 

5. **Nutrition Recovery in 2024**  
   **Q:** How will Nutrition's recovery progress throughout 2024?  
   **A:** Management expects **mid-single-digit revenue growth** in Nutrition, with operating profit higher year over year.  **[ADM_3377641_13]**  They anticipate recovery building throughout 2024, driven by improved demand fulfillment and growth in flavors, pet nutrition, and animal nutrition, while acknowledging some headwinds from lower prices in texturizing products.  **[ADM_3377641_13]** 

6. **Renewable Diesel Demand**  
   **Q:** Will renewable diesel demand for soybean oil decline?  
   **A:** Management believes the path for renewable green diesel remains strong and will require vegetable oils like soybean oil.  **[ADM_3377641_15]**  They see continued commitment to renewable diesel capacity that cannot be filled with other feedstocks, expecting this demand to stay **firm over the years**.  **[ADM_3377641_15]** 

7. **Carbohydrate Solutions Investment**  
   **Q:** Plans for investment in Carbohydrate Solutions capacity?  
   **A:** Management is investing in the Carbohydrate Solutions segment, expanding capacity for Biosolutions and starches, including a **50% expansion** at the Marshall facility.  **[ADM_3377641_14]**  They see growth opportunities driven by decarbonization efforts and expect **tailwinds from lower energy and chemical costs** later in the year.  **[ADM_3377641_14]** 

8. **Nutrition Portfolio Optimization**  
   **Q:** Details on Nutrition portfolio optimization plans?  
   **A:** Management is reviewing the Nutrition portfolio to improve performance, potentially through divestitures or adjustments.  **[ADM_3377641_17]**  They are focusing on units not meeting return expectations and are taking actions similar to past divestitures to enhance overall performance.  **[ADM_3377641_17]** 

9. **Biodiesel Margins and Capacity**  
   **Q:** Outlook for biodiesel margins and capacity?  
   **A:** Management expects biodiesel margins to remain good but lower in the U.S., with **better margins in Europe and Brazil**.  **[ADM_3377641_18]**  They anticipate increased biodiesel mandates globally and expect biodiesel to continue being a **strong part of crush demand**.  **[ADM_3377641_18]** 

827f5225a4058cecccf67ea1641d79aef9801bfb4130f5ee5fa433ddbd7cbe08

- ADM's **Specialty Ingredients** segment is facing challenges with decreased demand and operational issues, particularly in texturants and emulsifiers, which have seen declining prices after record highs last year.  **[ADM_3394994_8]**
- Regulatory uncertainties in biofuels policy are causing short-term volatility and making it difficult for ADM to predict demand, especially due to movements in California's **LCFS credits** and potential changes in the biodiesel blender's tax credit.  **[ADM_3394994_17]**
- The **Ag Services and Oilseeds** segment is in a transition year, moving from tight supplies to a more balanced supply-demand environment, leading to challenging conditions and limited visibility into the second half, with heavy reliance on **Q4 performance** to meet earnings targets.  **[ADM_3394994_7]**

44e56bbf699b1862105a11348092be5db323a7f4eaf395c215a41deed4c28f4d

- **Underperformance in Nutrition Segment**: ADM's Nutrition segment reported an operating profit of **$84 million**, lower than the prior year, with recent acquisitions not yet contributing to operating profit due to start-up costs.  **[ADM_3381506_14]**
- **Regulatory Pressures Increasing Operational Costs**: ADM is investing heavily in decarbonization strategies, including increasing carbon capture and sequestration from **2 wells to 7 wells**, and building pipelines to their carbon capture units, partly to comply with EU regulations, which could increase operational costs.  **[ADM_3381506_19]**
- **Potential Overestimation of Soymeal Demand**: Analysts are skeptical about ADM's expectations for improved soymeal demand later in the year, noting that forecasts do not project a significant uptick in poultry production, which could negatively impact the company's performance if demand does not materialize.  **[ADM_3381506_15]**

d74709305bb8c967dc1b20bcbf6253f350a0895e41cf6ed381e3ad99a1336128

1. **Crush Margins Outlook**  
   **Q:** Where are crush margins headed amid declines?  
   **A:** Crush margins have declined due to higher crush rates in Argentina, Brazil, and North America, combined with regulatory uncertainty in the oil sector. While demand for meal and oil remains strong, increased supply and lack of regulatory clarity are pressuring margins. ADM is focusing on productivity, cost control, and cash management, anticipating normalization once regulatory issues clear.  **[ADM_3410619_7]** 

2. **Earnings Growth in 2025**  
   **Q:** Can internal actions drive earnings growth in 2025?  
   **A:** Management is using margin declines as an opportunity to enhance efficiency and accelerate key decisions. Although it's too early to forecast due to regulatory unknowns, they are concentrating on controllable factors like cash flow to improve returns, positioning for potential earnings growth in 2025.  **[ADM_3410619_8]** 

3. **Q4 Guidance Risks**  
   **Q:** What are the risks to Q4 earnings guidance?  
   **A:** Good export volumes are expected, with China buying beans and Europe buying corn. However, margin expansion hasn't materialized as forecasted. Crush margins are under pressure due to regulatory uncertainty, which may impact timing effects. Ethanol margins are near breakeven. The Nutrition segment shows improvements but faces some challenges. Anticipated insurance proceeds of **$135 million** add variability to Q4 earnings.  **[ADM_3410619_11]** 

4. **Cost Focus and Priorities**  
   **Q:** What are Monish's key priorities to strengthen ADM?  
   **A:** Priorities include remediating financial material weaknesses, enhancing processes and systems, and driving reductions in cash, cost, and capital. There's a focus on productivity, business simplification, digital transformation, and strategic portfolio management to deliver value and control factors within their reach.  **[ADM_3410619_14]** 

5. **Capital Expenditure Plans**  
   **Q:** Will maintenance CapEx increase due to crush downtime?  
   **A:** Next year's CapEx will remain solid to ensure plant upkeep and invest in automation and digitization. While European and Latin American plants are operating well, some North American plants faced issues but are improving. These challenges aren't expected to significantly elevate maintenance CapEx beyond planned levels.  **[ADM_3410619_10]** 

6. **Insurance Proceeds Impact**  
   **Q:** How much are expected future insurance proceeds?  
   **A:** Expected losses are approximately **$100 million** for Decatur West and **$300–$400 million** for Decatur East. ADM received **$95 million** in Q3 and expects **$135 million** in Q4. In 2025, they anticipate **$50–$100 million**, with remaining amounts in subsequent years, depending on ongoing assessments and settlements.  **[ADM_3410619_13]** 

7. **Policy Changes Impact**  
   **Q:** How could tariffs and export taxes affect ADM?  
   **A:** Potential reductions in Chinese UCO exports and U.S. tariffs on UCO could benefit ADM by leveling the playing field. Enhanced regulation and verification of feedstock origins may restore soybean and canola oil's share in feedstocks, provided transparency and fair rules are maintained.  **[ADM_3410619_15]** **[ADM_3410619_18]** 

8. **SG&A Costs Increase**  
   **Q:** Why is SG&A increasing more than inflation?  
   **A:** SG&A growth is driven by higher litigation costs related to material weaknesses and investments in digital transformation. Additional expenses from recent M&A activities contribute to the increase. The company is implementing zero-based budgeting and seeking functional excellence to control costs while continuing essential investments.  **[ADM_3410619_16]** 

9. **China's Commodity Production**  
   **Q:** How is China's increased production impacting trade?  
   **A:** China has encouraged local corn production, reducing corn imports this year. This policy-driven shift affects global trade flows. In contrast, soybean imports remain stable as China refreshes reserves, so the impact is more significant in corn than in soybeans.  **[ADM_3410619_19]** 

10. **Brazilian Real Depreciation**  
    **Q:** How does Brazilian real’s depreciation affect ADM?  
    **A:** Devaluation impacts farmer selling behaviors; Brazilian farmers have become more reluctant sellers, affecting grain commercialization. This reluctance influences ADM's ability to source grain efficiently in Latin America, potentially affecting supply and margins in the region.  **[ADM_3410619_20]** 

372750c1b2acb73d5ee6856ca03b707c5a3f784ad3a790b87bc6b0b6014dff88

- **Biodiesel margins have moderated significantly in the U.S. and are expected to be lower than previous years**, leading to potential headwinds in 2024.  **[ADM_3377641_18]**
- **Crush margins have moved significantly lower recently**, and the timing of their recovery is uncertain, which may negatively impact earnings.  **[ADM_3377641_11]** **[ADM_3377641_16]**
- **The Nutrition segment's operating profit decreased by 36% compared to the prior year**, and despite management's efforts, recovery remains uncertain and may take time.  **[ADM_3377641_6]** **[ADM_3377641_17]**

b8e5be2a8e090d1b9459a168bf0b3025d9f0b295046595bc0653827ab1b56102

- ADM anticipates significant sequential improvement in its Nutrition segment, with strong growth in **Flavors** (sales up **6%** excluding M&A) and **Health & Wellness** (biotic sales growth up to **22%**), contributing to a year-over-year improvement in Q3.  **[ADM_3394994_8]**
- The company is on track to exceed its **$500 million** cost savings target over two years, having delivered about **$127 million** in savings in the first half of 2024, ahead of schedule. This momentum is expected to accelerate, positively impacting all three business segments.  **[ADM_3394994_10]**
- ADM expects favorable biofuel policies to increase demand for vegetable oils, supporting crush margins in the medium to long term. The company sees the **"pie getting bigger"** with higher mandates for **2025**, which is positive for crush margins.  **[ADM_3394994_17]**

ce1359ef90580e0a0c0613c7d5dbdc02dde78517df9cc5d73a9ede571167502e

- **ADM has exceeded its 2023 goal of 2 million acres in regenerative agriculture programs and increased its 2025 goal from 4 million to 5 million acres**, highlighting the company's leadership in sustainability and strong relationships with farmers.  **[ADM_3381506_20]**
- **Recent flavor acquisitions are performing better than initial estimates**, contributing positively to the Nutrition segment's growth; additionally, the biotics business increased operating profit by 100% in the first quarter.  **[ADM_3381506_14]** **[ADM_3381506_13]**
- **ADM anticipates increased vegetable oil demand from renewable diesel**, expecting an additional 1 billion gallons of capacity this year, which should bolster crush margins and overall performance.  **[ADM_3381506_15]**

f92e47eb0191229943ea100b436c75d2f2b3e2b1a65de605d3f9ec885710f08e

- **Declining U.S. crush margins due to increased global supply and regulatory uncertainty**: ADM has experienced a decline in U.S. crush margins, attributed to higher crush rates in Argentina and Brazil and **regulatory uncertainty** in the oil sector, leading to market pressure and lower margins.  **[ADM_3410619_7]**
- **Operational challenges and delays in Nutrition segment recovery**: The **Decatur East facility**, crucial for ADM's Human Nutrition segment, remains down, with its ramp-up delayed from the end of 2024 to the **first quarter of 2025**, resulting in significant costs and impacting profitability.  **[ADM_3410619_9]**
- **Potential negative impact from China's increased local commodity production**: **China's efforts to incentivize local corn production** have reduced its corn imports, negatively affecting global trade flows and potentially impacting ADM's trading opportunities.  **[ADM_3410619_19]**

b02e05a232c2d9b4e00ea3ab16294e375d65f9a47efe02843a9515ae4609fb73

1. **Guidance and Margin Outlook**  
   **Q:** Any changes to guidance amid tempered AS&O outlook?  
   **A:** Management maintained EPS guidance despite tempering language on Ag Services and Oilseeds (AS&O), citing strong performance in other segments. Current crush margins are exceeding the prior range of **$35 to $60 per metric ton**, but they prefer not to adjust guidance due to existing visibility and expectations heavily weighted toward Q4.  **[ADM_3394994_7]** 

2. **Nutrition Segment Improvement**  
   **Q:** Will Nutrition profits increase year-over-year despite past write-downs?  
   **A:** Management confirmed that Nutrition segment profits would grow year-over-year off a base of approximately **$495 million**.  **[ADM_3394994_8]**  Sequential improvements are expected, with Q3 showing significant improvement over Q2. Growth drivers include strong performance in Flavors (sales up **6%** excluding M&A), robust Probiotic sales (up **22%**), and a recovery in demand after destocking. Specialty Ingredients faces challenges, but overall, the segment is optimistic.  **[ADM_3394994_8]** 

3. **Cost and Productivity Initiatives**  
   **Q:** Update on $500 million cost savings by 2025?  
   **A:** The company is on track with its cost-saving initiative, delivering about **$127 million** in the first half of the year, slightly ahead of the planned **$125 million** per half-year pace.  **[ADM_3394994_10]**  Management expects to achieve the $500 million target well before the two-year mark, with cost savings accelerating across Carbohydrate Solutions, Nutrition, and Ag Services and Oilseeds.  **[ADM_3394994_10]** 

4. **Crush Margins and Outlook**  
   **Q:** Clarify the reported soybean crush margins and outlook.  
   **A:** The company reported soybean crush margins of **$45 per ton** in Q2.  **[ADM_3394994_13]**  Current crush margins in the U.S. are between **$60 to $70 per ton**, with similar margins in Europe. Improved demand for soybean meal, partly due to Argentine farmers holding back sales, has bolstered margins. Management is positive about crush margins for the rest of the year, expecting strong U.S. crops and continued global demand.  **[ADM_3394994_13]** 

5. **Ethanol Margins and Demand**  
   **Q:** Are strong ethanol margins sustainable into the second half?  
   **A:** Ethanol margins have rebounded due to strong domestic demand and record exports, potentially reaching **1.7 to 1.9 billion gallons** per year.  **[ADM_3394994_12]**  Ethanol remains competitive with gasoline globally. Management believes margins are holding and bodes well for a strong Q3. The Sweeteners and Starches business also benefits from robust volumes and lower energy costs due to natural gas prices around **$2**.  **[ADM_3394994_12]** 

6. **Argentina Farmer Selling Impact**  
   **Q:** How might Argentina's farmer selling affect the market?  
   **A:** Argentine farmers are holding back soybean sales due to an unfavorable exchange rate gap of about **50% to 55%** and low commodity prices.  **[ADM_3394994_14]**  The government focuses on fighting inflation and is unlikely to unify the exchange rate soon. This situation may reduce soybean exports from Argentina, benefiting other markets like North America.  **[ADM_3394994_14]** 

7. **Chinese UCO Imports and Soybean Oil**  
   **Q:** What is the impact of Chinese UCO imports on soybean oil?  
   **A:** Imports of Used Cooking Oil (UCO) from China to the U.S. have slowed significantly.  **[ADM_3394994_15]**  Factors include industry scrutiny over import quality and Europe's imposition of duties on Chinese products, redirecting UCO flows to Europe. A better-balanced North American feedstock market and rising palm oil prices bode well for U.S. soybean oil going forward.  **[ADM_3394994_15]** 

0afa245f5b8c35308f5ab95036ed9288b2d0ab63982d4906c855d9daff867998

Archer-Daniels-Midland Co (ADM)

Financials