Archer-Daniels-Midland Company

This is our first report on global food processing giant, Archer-Daniels-Midland. The company had a strong fourth quarter and ended 2022 with an all-around beat. The Ag Services and Oilseeds business had an amazing year with significantly higher year-over-year performance. Low water conditions limited North American export volumes, which were largely offset by a strong performance by the South American business. As the company continued to execute well to fulfill the demand for food oil, renewable fuel in the U.S., and biodiesel abroad, RPO results were noticeably higher yearly. Carbohydrate Solutions had a successful quarter. The North American business produced excellent volumes and margins in both starches and sweeteners, slightly offsetting decreased ethanol margins. In 2022, the nutrition industry’s track of rapid expansion was maintained. Their expanding pipeline and robust win rates resulted in full-year revenue growth of 18% on a constant currency basis, demonstrating that ADM remains the provider of choice in nutrition for systems.