Ardent Mills reports 21% drop in earnings for fiscal 2024 amid industry challenges
USA – Ardent Mills LLC, the largest flour milling company in the United States, has reported a 21% decline in its net earnings for fiscal 2024.
The results, disclosed on July 11 in a Form 10-K filed by Conagra Brands, Inc. with the Securities and Exchange Commission, highlight a challenging year for the company following a historically strong fiscal 2023.
Ardent Mills, in which Conagra holds a 44% stake, saw its earnings after income taxes fall to US$361.5 million for the year ended May 26, 2024, from the US$453.2 million recorded in fiscal 2023.
Net sales also experienced a downturn, dropping 12% to US$4.6 billion, compared to US$5.24 billion in the previous fiscal year. Gross profits followed a similar trend, falling 14% to US$642 million from US$745.4 million in fiscal 2023, although still up 24% from fiscal 2022.
David S. Marberger, executive vice president and chief financial officer of Conagra, attributed the earnings decline to slightly lower volume trends in the milling industry and a return to a more normalized commodity revenue environment.
“The decrease in Ardent’s fiscal ‘24 results reflects slightly lower volume trends in the milling industry and a move toward a more normalized commodity revenue environment, which hit record levels in fiscal ’23,” Marberger noted in his remarks.
Despite the downturn, Ardent Mills remains on a strong financial footing, with Conagra receiving US$251.6 million in dividends from its equity investments in fiscal 2024, up from US$138.4 million in fiscal 2023.
Sean Connolly, president and chief executive officer of Conagra, expressed optimism about Ardent Mills’ future, although he acknowledged that fiscal 2025 is not expected to reach the heights of the previous years.
The broader milling industry has faced challenges due to fluctuating commodity prices and shifts in consumer demand.
Despite these headwinds, Ardent Mills managed to improve product margins, particularly in the second quarter of fiscal 2024, which helped to offset some of the volume declines.
In a call with investment analysts, Marberger highlighted the strong performance of Ardent Mills as a key factor in Conagra’s financial resilience during a period of weaker overall earnings
Looking ahead, Ardent Mills is expected to continue delivering solid results, though the company and its stakeholders remain cautious in the face of ongoing industry volatility.
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