Archer Daniels Midland saw its third-quarter revenue increase by 5.9% as it was supported by strong growth in its nutrition segment.
In the three months to 30 September, the agricultural processor and food ingredient provider reported revenue of $16.73 billion. Net earnings fell from $536 million in the year-ago quarter to $407 million.
Wild Flavors & Specialty Ingredients results were significantly higher than the prior-year quarter, with growth across the portfolio.
In specialty ingredients, ADM’s protein business continued to expand amid the growing consumer market for alternative proteins. During the quarter, the company announced a partnership with beef producer Marfrig for the production and sale of plant-based protein products in Brazil.
In ADM’s largest business segment, ag services and oilseeds, results were lower than the third quarter of 2018, which benefited from very strong crush margins.
Meanwhile, carbohydrate solutions results were substantially lower than the year-ago period. Starches and sweeteners results were down versus the third quarter of 2018. The unit’s results in North America were affected by higher net corn costs partly offset by lower manufacturing costs.
“We delivered solid third-quarter results, consistent with the perspectives we provided last quarter, despite a difficult external environment,” said ADM CEO Juan Luciano. “We maintained our focus on serving our customers and advancing our strategic goals, and continued to realise the benefits of the actions that we took earlier this year.
“We are excited about our strategic growth activities, and particularly our participation and leadership in major global trends such as flexitarian diets, nutrition for health, and sustainable materials. We have invested in assets, platforms and technological capabilities to serve and grow with our customers, who are embracing these market-changing trends.
“While external conditions for certain businesses may remain fluid and potentially challenging in the near term, our growing leadership position in major global trends, and our strength in innovation, efficiency, and customer service, position us well for stronger results in 2020 and beyond.”