The Andersons reports 13% surge in net income for fiscal 2024
USA – The Andersons, Inc. has reported a 13% increase in net income for fiscal 2024, reaching US$114.01 million, or US$3.35 per share, compared to US$101.19 million, or US$3 per share, in 2023.
According to the company, this surge was primarily driven by a robust performance in its Trade segment, which benefited from an early harvest that allowed the company to accumulate high-quality grain at favorable basis values.
For the fourth quarter that ended Dec. 31, 2024, net income totalled US$45.09 million, or US$1.32 per share, reflecting a 12% decline from the previous year’s US$51.19 million, or US$1.52 per share.
Despite this quarterly dip, the company’s full-year performance was buoyed by strong merchandising opportunities and a consistent performance in its premium ingredients business.
Bill Krueger, president and chief executive officer, highlighted the impact of favorable market conditions and strategic investments.
“We also saw improved merchandising opportunities and good results in our premium ingredients business. Renewables also had a very solid quarter but could not duplicate 2023 despite record ethanol production due to lower ethanol prices and co-product values,” he said.
The Trade segment played a pivotal role in The Andersons’ strong annual results, with pretax income for the fourth quarter rising to US$53.63 million, compared to US$43.81 million in the prior year.
Adjusted pretax income also improved to US$47.02 million from US$43.81 million. The segment’s adjusted EBITDA for Q4 2024 stood at US$76 million, up from US$62 million in the same period in 2023. For the full year, adjusted EBITDA reached US$161 million, a notable increase from US$155 million in 2023.
The company also integrated its Skyland Grain LLC locations into its trade flow, with the annual report including two months of results from this recent investment. The premium ingredients business maintained its steady and profitable growth, contributing to the overall positive performance of the Trade segment.
Future Outlook
While the Renewables segment continued to perform efficiently, it faced challenges due to lower ethanol prices and co-product values.
Fourth-quarter pretax income for Renewables was US$24.92 million, with pretax income attributable to the company at US$15.98 million, significantly down from the US$59.99 million and US$32.74 million, respectively, recorded in Q4 2023.
Full-year adjusted EBITDA for Renewables stood at US$189 million, down from US$230 million in 2023.
Looking ahead, The Andersons anticipates regulatory and geopolitical uncertainties, along with potential challenges in the agricultural sector. However, Krueger remains optimistic about growth opportunities, particularly in ethanol exports and agribusiness investments.
“We currently expect a significant increase in planted corn acres and continuing strong ethanol exports. Our mix of North American agribusiness and ethanol production assets, along with our strength in merchandising, positions us well to withstand downward pressures from these market shifts,” Krueger said.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
