Archer Daniels Midland Co. released fourth quarter financial results on Feb. 4, reporting increased operating profit for its Vantage Corn Processor subsegment on higher ethanol export volumes and improved margins.
ADM’s VCP subsegment, which includes the company’s dry mill ethanol plants, is part of the Carbohydrate Solutions segment.
According to ADC, the Carbohydrates Solutions segment reported $319 million in operating profit for the fourth quarter of 2024, up 3% when compared to the same period of 2023. VCP reported $15 million in operating profit for the three-month period, compared to a $3 million loss reported for the fourth quarter of 2023.
For the full year 2024, the Carbohydrate Solutions segment reported operating profit of $1.4 billion, unchanged from 2023. VCP operating profit was $33 million, down from $46 million in 2023. ADM primarily attributed the decline to strong export volumes that were more than offset by lower margins due to high industry production and inventory levels.
Monish Patolawala, executive vice president and chief financial officer of ADM, said robust export demand in 2025 is likely to support strong volumes. Higher industry run-rates, however, are expected to result in break-even EBITDA margins. Ethanol margins for the current year are expected to be in the range 5 cents to 10 cents per gallon, down approximately 10 cents per gallon at the midpoint compared to 2024, Potolawala added.
Overall, ADM reported that fourth quarter earnings before income taxes were $667 million, down 9% when compared to the fourth quarter of 2023. Earnings per share on a GAAP basis were $1.17, up 10%, with adjusted earnings per share at $1.14, down 16%. Total segment operating profit for the fourth quarter was $1.05 billion, down 16%.
For the full year 2024, earnings before income taxes were $2.3 billion, down 47% when compared to 2023. Earnings per share on a GAAP basis were $3.65 and adjusted earnings per share were $4.74, both lower than the previous year. Total segment operating profit was $4.2 billion, down 28%.
