ADM reports 9% revenue decline in fiscal 2024, outlines simplification plans for 2025
USA – Archer Daniels Midland Company (ADM) announced fiscal 2024 revenues of US$85.53 billion for fiscal 2024, representing a 9% decline from the US$93.94 billion generated in fiscal 2023.
Following the announcement, the company’s share price dropped by 6.8% to US$45.93 on February 4, marking its first dip below US$46 since November 2024.
The company attributed the drop to challenges in its Ag Services and Oilseeds division, as well as shifting global trade and regulatory policies. Despite the downturn, ADM’s leadership remains focused on agility and operational improvements to navigate the evolving landscape.
During a conference call with analysts on February 4, Juan Luciano, ADM’s president and chief executive officer, emphasized the company’s commitment to adaptability.
“We’ve entered 2025 knowing that we need to remain agile to manage through shifts in both trade and regulatory policy around the world, along with the related impacts on geographic supply and demand,” Juan Luciano, ADM’s president and chief executive officer said.
“With a global asset base and constantly evolving product innovation, our team is prepared to pivot as needed to support the resiliency of the Ag, food, energy, and industrial sectors we serve,” he added.
Cost management, workforce reductions plans for 2025
ADM aims to achieve US$500 million to US$750 million in cost savings over the next several years, including US$200 million to US$300 million in 2025. Key strategies include cost management, operational efficiency, and strategic simplification.
Luciano highlighted ongoing efforts to streamline operations and manage costs. “We’re aggressively managing our SG&A and corporate costs as we make shifts in the business portfolio and lean into our strengthening digital capabilities,” he said.
This includes eliminating approximately 600 to 700 positions, with around 150 of these being unfilled roles.
The company is also focusing on leveraging data analytics to identify new savings opportunities and aligning its organizational structure to prioritize critical efforts. ADM has identified a pipeline of approximately US$2 billion in portfolio opportunities and will execute these initiatives to maximize shareholder value.
Financial performance by business unit
ADM’s Ag Services and Oilseeds division saw operating profit decline to US$2.45 billion from US$4.07 billion in fiscal 2023.
Crushing profits declined by 35%, Ag Services dropped 39%, and Refined Products and Other saw a 58% decrease. ADM attributed the lower results to reduced South American origination volumes and more balanced supply-demand conditions globally.
The Carbohydrate Solutions unit reported a slight increase in operating profit, inching up to US$1.376 billion from US$1.375 billion. Profit in Starches and Sweeteners rose by 1%, while Vantage Corn Processors experienced a 28% decline.
However, the Nutrition segment experienced a 10% decline in operating profit to $386 million from US$427 million. Human Nutrition fell 22% to US$327 million, but Animal Nutrition saw a significant surge to US$59 million from US$10 million.
Luciano emphasized the importance of strategic simplification. “We are continually evaluating how our portfolio balances the evolving needs of our customers and our expectations to achieve returns objectives,” he noted. This includes considering potential closures, divestitures, and targeted synergy acceleration.
ADM remains committed to investing in both productivity and innovation. The company’s approach balances organic growth investments and maximizing operational efficiency.
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