Archer-Daniels-Midland Company (ADM) Q1 2023 Earnings Call Transcript

Archer-Daniels-Midland Company (NYSE:ADM) Q1 2023 Earnings Conference Call April 25, 2023 9:00 AM ET

Company Participants

Megan Britt – Vice President-Investor Relations

Juan Luciano – Chairman and Chief Executive Officer

Vikram Luthar – Chief Financial Officer

Conference Call Participants

Tom Palmer – JP Morgan

Adam Samuelson – Goldman Sachs

Ben Theurer – Barclays

Andrew Strelzik – BMO Capital Markets

Eric Larson – Seaport Global Securities

Manav Gupta – UBS

Steven Haynes – Morgan Stanley

Ben Kallo – Baird

Salvator Tiano – Bank of America

Operator

Good morning, and welcome to the ADM First Quarter 2023 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.

Megan Britt

Thank you, Bailey. Hello, and welcome to the first quarter earnings webcast for ADM. Starting tomorrow, a replay of this webcast will be available on our Investor Relations website.

Please turn to Slide 2. 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 risks 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.

On today’s webcast, our Chairman and Chief Executive Officer, Juan Luciano, will discuss our first quarter results, provide ADM’s perspective on the current market backdrop and share progress highlights on our strategic priorities for the year. Our Chief Financial Officer, Vikram Luthar, will review the drivers of our financial performance at the segment level and review our cash generation and capital allocation results. Juan will have some closing remarks, and then he and Vikram will take your questions.

Please turn to Slide 3. I’ll now turn the call over to Juan.

Juan Luciano

Thank you, Megan. And thanks to all those joining us for the call today.

This morning, ADM reported strong first quarter adjusted earnings per share of $2.09, with an adjusted segment operating profit of $1.7 billion and a trailing fourth quarter average adjusted ROIC of 14%. Our performance demonstrates once again the advantage of ADM’s uniquely integrated value chain and broad portfolio. Along with the team’s ability to respond nimbly to opportunities aligned to the three enduring trends of food security, health and well-being and sustainability.