Cargill reports its financial results for fiscal 2018 Q1
The company's adjusted operating earnings reached 888 million dollars, an increase of 7% compared to the earnings reported in the similar period of the last fiscal year.
Furthermore, net earnings on a U.S. GAAP basis were $973 million, up 14 percent from $852 million a year ago and the company's revenues reached $27.3 billion, edging ahead of last year’s $27.1 billion.
“We’re off to a good start in our new fiscal year, powered by the significant work we’ve done over the last few years and continuing to accelerate our performance,” said David MacLennan, Cargill’s chairman and chief executive officer. “Even as market conditions vary across our sectors, our teams are delivering for our customers and achieving results to fuel future growth.”
Animal Nutrition & Protein carried its momentum from fiscal 2017 into the new quarter, with adjusted operating earnings up significantly from last year.
"Protein results in North America were lifted by brisk consumer demand for beef, strong exports and more abundant cattle supplies, resulting in better utilization of processing capacity. Global poultry slightly lagged the year-ago period, as somewhat weaker results in Central America trimmed strong domestic sales and exports out of Southeast Asia. Global animal nutrition nearly reached last year’s quarterly results. Gains attributable to sales of value-added feed additives and premixes were offset by market pressures in aqua feeds in Europe and swine in Vietnam," the company statement read.
At the start of the quarter, Cargill acquired Pollos El Bucanero, a leading producer of chicken and processed meats in Colombia. Also in the protein space, Cargill invested in San Leandro, California-based Memphis Meats. The young company is developing methods to cultivate meat directly from animal cells. Over time, cultured proteins could potentially complement conventionally produced meats as part of the equation to sustainably nourish the future.
In animal nutrition, Cargill completed the purchase of Southern States Cooperative’s feed business, which serves customers in the southeastern and eastern U.S. It also formed a partnership with Austria’s Delacon, a leading maker of phytogenic feed additives for the animal nutrition market. Both Cargill and Delacon seek to accelerate the growth of these natural, plant-based feed additives that support animal health.
Food Ingredients & Applications was the second-largest contributor to company earnings, as continued attention to raising commercial capabilities and operating efficiencies yielded improved earnings. Cocoa and chocolate products, along with sweeteners and starches for food and other applications led results in most regions. The segment’s Asia-based businesses also realized improved volumes.
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