ADM - Archer-Daniels-Midland Company (ADM) Q1 2024 Earnings Call Transcript
2024-04-30 13:49:10 ET
Archer-Daniels-Midland Company (ADM)
Q1 2024 Earnings Conference Call
April 30, 2024 9:00 am ET
Corporate Participants
Megan Britt - Vice President of Investor Relations
Juan Luciano - Chairman and Chief Executive Officer
Ismael Roig - Interim Chief Financial Officer
Conference Call Participants
Andrew Strelzik - BMO
Ben Bienvenu - Stephens
Tom Palmer - Citi
Manav Gupta - UBS
Heather Jones - Heather Jones Research
Salvator Tiano - Bank of America
Ben Theurer - Barclays
Steven Haynes - Morgan Stanley
Adam Samuelson - Goldman Sachs
Ben Kallo - Baird
Presentation
Megan Britt
Hello and welcome to ADM's first quarter 2024 earnings conference call. Our prepared remarks today will be led by Juan Luciano, our Board Chair and Chief Executive Officer, and Ismael Roig, our Interim Chief Financial Officer. We have prepared presentation slides to supplement our remarks on the call today, which are posted on the investor relations section of the ADM website and through the link to our webcast.
Some of our comments and materials may constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These statements and materials are based on many assumptions and factors that are subject to risk and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation.
To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements as a result of new information or future events.
I'll now turn the call over to Juan.
Juan Luciano
Thank you, Megan.
Today, ADM reported first quarter adjusted earnings per share of $1.46, adjusted segment operated profits of $1.3 billion, and a trailing fourth quarter average adjusted ROIC of 11.2%. Our first quarter operating cash flow before working capital was $900 million. In a year where the buildup of grain and oil seeds supply is expected to create pressure on margins, our teams are proactively taking action to manage through the cycle, driving structural earnings, ROIC, and cash flow generation. Our strong performance and disciplined management of our balance sheet continue to allow us to invest in our business and return cash to shareholders.
Next slide, please. Last month, we laid out three priorities for value creation in 2024. One, managing through the cycle. Two, nutrition recovery. And three, enhanced return of cash to shareholders. We made progress on each of these priorities in the first quarter. Our efforts to manage through the cycle highlight ADM's ability to mitigate challenging headwinds while building structurally on enduring global trends, such as sustainability.
To share a few examples of progress in the first quarter, we have been ramping up production at our Green Bison joint venture with Marathon, with increased volumes and utilization in [indiscernible]. And we're expecting to be at sustained full run rates for harvest this fall. We're continuing to evolve the carbohydrate solutions business through decarbonization, driving nearly 10% volume growth in bio solutions in Q1, while managing solid demand across the core business....
Archer-Daniels-Midland Company (ADM) Q1 2024 Earnings Call Transcript