In a January 25th release, Archer-Daniels-Midland Corp. (ADM) posted financial results for the 4th quarter and fiscal 2021. This Company can be regarded as a bellwether for the ‘Mega-Ag’ and commodities industry. Along with competitors Bunge, Cargill, Cofco and Dreyfus, all are subject to the risks of currency fluctuation, international political events, climatic extremes, and increased cost of ingredients, labor and transport in a competitive World environment still restrained by COVID.

For the 4th Quarter of FY 2021 ending December 31st, net income was $782 million on total revenue of $23,090 million.  Comparable figures for the 4th quarter of fiscal 2020 ending December 31st 2020 were net income of $633 million on total revenue of $17,978 million.  EPS rose from $1.22 for the 4th quarter of fiscal 2020 to $1.38 for the most recent quarter.

For FY 2021 net earnings were $2,709 million on revenue of $85,249 million compared to net earnings of $1,782 on revenue of $64,355 million for FY 2020. EPS for FY 2021 attained $4.79 compared to $3.15 million for FY 2020. For the most recent year the Animal Nutrition segment generated an operating profit of $154 million attributed to increased sales and margin on amino acids.

In commenting on results, Chairman and CEO Juan Luciano stated “Our record results reflect the continued success of our growth strategy and our culture of innovation and execution, which enabled our global team to successfully navigate through supply chain challenges while capitalizing on favorable demand dynamics to deliver an outstanding year,” He added “Just as importantly, we’re advancing our productivity and innovation actions to accelerate earnings growth,”

Luciano concluded “We’ve positioned our portfolio to align with the enduring trends of food security, health and well-being, and sustainability. As we enter 2022, we’re well situated to capitalize on strong crush margins, driven by good demand for meal and for vegetable oil as a feedstock for renewable green diesel; a continuing healthy ethanol market, supported by increased domestic and export demand and better clarity of the regulatory landscape; and our robust Nutrition sales pipeline, as well as the accretion of our recent acquisitions in that business.

On December 31st 2021, ADM posted assets of $35,716 million, against long-term debt of $8,581 million. The Company had an intraday market capitalization of $35,500 million on January 25th. ADM trades with a forward P/E of 13.6 and has ranged over a 52-week period from $49.28 to $72.12 with a 50-day moving average of $66.50.  Twelve-month trailing operating margin was 3.4 percent and profit margin 3.3 percent.  Return on assets over the past twelve months was 3.6 percent and the return on equity 12.6 percent. At close of trading January 24th pre-release, ADM was priced at $68.59. At market close, post-release on January 25th ADM traded at at $68.37