Followers | 101 |
Posts | 29292 |
Boards Moderated | 3 |
Alias Born | 09/17/2006 |
Saturday, May 21, 2022 10:26:49 AM
https://www.world-grain.com/articles/16934-adm-sees-runway-to-15-to-20-growth-in-nutrition
NEW YORK, NEW YORK, US — Nutrition represents approximately 15% of operating profit at ADM, but executives of the Chicago-based company have called out the platform for its potential to drive the majority of profit growth over the next several years. That potential would have been unheard of a decade ago.
“I think sometimes people don’t get is how early are we in the game of building this business (nutrition),” Juan R. Luciano, president and chief executive officer, said during a May 18 presentation during the BMO Capital Markets Global Farm to Market Conference in New York. “This is a business (that) didn’t exist in ADM in 2014, and it’s a business that is going to make, give or take, north of $800 million in operating profit this year and probably $1 billion of operating profit next year.”
The $1 billion figure is a lofty target for a business that Luciano acknowledged is still “at the early stages.”
Much of the optimism stems from the fact ADM sees a clear runway to growth of 15% to 20% over the next 5 to 10 years.
“We are significantly underrepresented from a geography perspective,” Luciano said. “We are very good in the areas that are growing the least like North America and Europe, but we are just getting started in Latin America and Asia Pacific, and basically has been a business where we have positioned ourselves very, very well in applications that are growing fast and in customers that are growing fast.”
ADM has a broad portfolio of products to contribute to nutrition, but more importantly, Mr. Luciano said, is the fact the company entered the category with a plan.
“We knew we were late to this industry,” he said. “So when we look at the industry, we said, ‘How can we differentiate ourselves?’ And our way to do that was to change the paradigm. Instead of people competing in verticals of colors and flavors and texture and some proteins, we said, ‘I don’t want to look at the business like that.’ We want to look at the $30 billion to $40 billion … in general business. And we introduced this concept of bringing systems into it. So not only (do) we have the best pantry, but we have the fastest speed to get the customer or the marketing department of a customer to a product to be launched in a few months. And that, I think, was the recipe for this accelerated growth.”
ADM steadily has expanded its presence in nutrition, beginning with human nutrition, beverages and food, and gradually adding pet and biomaterials.
Luciano said a “high proportion” of the $1.3 billion in capital that ADM plans to spend in 2022-23 is earmarked for nutrition. He stopped short of saying that the company has any plans for a major acquisition in the category over the next five years, though.
“We continue to think ourselves as organic growth and some bolt-on M&A,” he said. “I think these last 10 years of cheap money have exacerbated valuations in the nutrition space. So we try to be very targeted and very shy in terms of how much M&A we put into that. We think that those valuations may correct, and then we can flex our balance sheet.”
Life is not measured by the number of breaths you take, but by the moments that take your breath away--Wows happen!!!
Recent RIBT News
- Form 8-K - Current report • Edgar (US Regulatory) • 06/07/2024 01:15:22 PM
- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 04/19/2024 08:25:57 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 03/30/2024 01:43:11 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/31/2024 10:01:09 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 07:36:17 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 01/13/2024 02:51:19 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 01/13/2024 01:28:01 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 01/13/2024 01:05:01 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/09/2024 01:58:13 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/09/2024 01:53:02 AM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/15/2023 09:26:53 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/02/2023 08:24:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/20/2023 08:06:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/05/2023 01:07:33 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/05/2023 12:55:44 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM