An early harvest boosted the Trade segment of The Andersons’ results, making a significant contribution to the fourth quarter ended Dec. 31, 2024.
Net income at The Andersons in fiscal 2024 totalled $114.01 million, equal to $3.35 per share on the common stock, up 13% from $101.19 million, or $3 per share, in fiscal 2023. In the fourth quarter, net income was $45.09 million, or $1.32 per share, down 12% from $51.19 million, or $1.52 per share, in the same period a year ago.
An early harvest allowed the company to accumulate higher-than-normal quality grain at good basis values, said Bill Krueger, president and chief executive officer.
“We also saw some improved merchandising opportunities and good results in our premium ingredients business,” Krueger said. “Renewables also had a very solid quarter but could not duplicate 2023 despite record ethanol production due to lower ethanol prices and co-product values. In Nutrient & Industrial, we had year-over-year improvement led by our manufactured product lines that helped offset soft ag supply chain results due to limited farmer engagement. In these changing ag markets, I’m proud of our team.”
Krueger also said the company is integrating its Skyland Grain LLC locations into its trade flow, and the annual report includes two months of results from that recent investment.
Trade recorded pretax income and adjusted pretax income attributable to the company of $53.63 million for the quarter, compared with pretax income of $43.81 million and adjusted pretax income of $47.02 million in the prior year’s fourth quarter.
The merchandising businesses realized improvements over the prior year despite limited volatility in the grain markets. The company said the premium ingredients business had another consistent and profitable quarter.
Trade’s fourth-quarter adjusted EBITDA was $76 million, compared with the fourth-quarter 2023 adjusted EBITDA of $62 million. For the full year, adjusted EBITDA was $161 million in 2024, compared with $155 million in 2023.
Pretax income in the company’s Renewables segment totalled $24.92 million in the fourth quarter, while pretax income attributable to the company was $15.98 million. This is compared with pretax income of $59.99 million and pretax income attributable to the company of $32.74 million in the fourth quarter of 2023.
Fourth-quarter results were down from a prior year record, as ethanol board crush margins were down, and co-product values traded lower on reduced corn prices and weaker corn oil values. Partially offsetting these headwinds, the four ethanol plants continued to run efficiently, with record fourth-quarter production and reduced input costs.
Renewables recorded EBITDA of $40 million in the fourth quarter of 2024, compared to 2023 fourth quarter EBITDA of $73 million. For the full year, adjusted EBITDA was $189 million in 2024, compared to $230 million in 2023.
Looking ahead, Krueger said the company sees continued regulatory and geopolitical uncertainties and potentially challenging agricultural economics. But it also sees signs of opportunity.
“We currently expect a significant increase in planted corn acres and continuing strong ethanol exports,” he said. “Our mix of North American agribusiness and ethanol production assets along with our strength in merchandising, positions us well to withstand downward pressures from these market shifts. In addition to the recent Skyland Grain investment, we are making progress on several longer-term capital investments that will enhance future results.
“We also continue to actively pursue growth in the Renewables space, both by lowering the carbon intensity of our ethanol plants as well as evaluating expansion and acquisition opportunities. In December, we announced some changes to improve the alignment of our commercial teams to serve our customers even better, gain operational efficiencies, and continue to drive growth. We are excited about the new Agribusiness and Renewables teams and are working hard to achieve our growth strategy.”