Dive Brief:
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Cargill posted its highest-ever results, according to an annual report Wednesday, with revenue buoyed by strong grain prices due to uncertainty around the Black Sea grain deal.
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The private company saw revenue of $177 billion for fiscal year 2023, up 7% from the previous year.
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The results coincide with solid quarterly performances from peers Bunge and Archer-Daniels-Midland, who both raised their earnings outlooks for the year.
Dive Insight:
Crop prices for corn, soybeans and wheat softened through 2023, but remain elevated compared to levels seen in recent years. They surged last month following the termination of the grain corridor deal, injecting uncertainty into global supply, according to a CME Group market report.
Results reached historic highs despite complex challenges and constant disruption throughout the year, Brian Sikes, Cargill’s president and chief executive officer, said in a letter to stakeholders.
“We’re working to support a resilient food system and find solutions to the world’s most urgent challenges," Sikes wrote in the letter, "including rising food insecurity that’s rippled around the world since the war in Ukraine began, climate change, inflation, supply chain disruptions, and more."
Recently, food giants Bunge and ADM said they were expecting higher profits for the rest of the year, depending on how market conditions evolve.
Cargill's strong annual gains come following a series of investments that expanded the global business.
During fiscal 2023, Cargill acquired Owensboro Grain Company and Croda, increasing its oilseed crush capacity and bioindustrial footprint. It also completed a joint venture in Wayne-Sanderson Farms to capitalize on the unrelenting popularity of chicken.
The private company discontinued reporting most of its financial details in 2020, with exception to fiscal sales that get disclosed in its annual report.
