ADM’s animal nutrition portfolio profit improves in Q1 2024

Operating profits for ADM’s nutrition segment—including its animal portfolio—stood at $84 million (€78.4M) from January to March 20234, 39% less than during the same period in 2023. 

The animal nutrition subsegment—which covers both pets and livestock—posted an operating profit of $8 million (€7.4M), which is slightly higher than last year. In the first quarter of 2023, ADM’s animal business hit $7 million (€6.5M). 

According to the company, this was higher year-over-year “as cost optimization efforts and lower input costs bolstered margins.”

The profits for ADM’s animal nutrition segment were $15 million (€14M) in the last quarter of 2023.

The company’s global operating profit stood at $1.31 billion (€1.22B), a 24% decrease from $1.72 billion (€1.6M) during the same period in 2023.

Growth opportunities for 2024

Chicago-based ADM identified 5 areas of growth in its 2024 Pet Nutrition Insights Report released earlier in March.

It sees market potential for new types of healthy treats through innovations in ingredients and formulation and nutritious treats that mimic indulgent human food.

The ingredients supplier also highlighted the potential of healthy training and enrichment treats for a “guilt-free treating experience” and a focus on ingredients that boost gut health and improve overall wellness.

It has also identified growth opportunities for scientific research into the role of active ingredients in health and wellness.

Sustainability

ADM expects to see an increased focus on sustainability initiatives from pet care brands of all sizes in 2024.

The company forecasts that an increasing number of pet care companies will develop lifestyle brands to advertise via social media and diversify their lines to include health and wellness products. It also predicts that mood-boosting, mental well-being and energy-regulating pet products may become popular choices for many brands.

ADM recently announced that its regenerative agriculture program expanded to more than 2.8 million acres in 2023, exceeding its 2 million-acre goal. To enhance sustainability and reduce the carbon footprint of its value chains, it aims to reach 3.5 million acres this year and 5 million by 2025.