Cargill reports sales and profits growth

Global agri-food firm Cargill, which operates in 70 countries and has 155,000 employees, has reported strong growth in sales and profits in its latest full year results, published on 12 July.

Global revenue for the year ending 31 May 2018 grew 5% to $114.7 billion, while net earnings increased 9% to $3.1 billion.

In the fourth quarter, revenues grew 7% to $30.4 billion, while net earnings more than doubled to $711 million.

The company, which is headquartered in Minneapolis, said its improved financial results over the past two years are the outcome of significant efforts by its teams. “The organisation runs today with greater agility and stronger integration to serve customers’ rapidly changing needs,” it said in a statement. 

“Our strong results show we are creating the connections the world needs for vibrant food and agriculture both today and tomorrow,” said David MacLennan, Cargill’s chairman and chief executive officer. “Cargill has always moved food from where it is produced to where it is needed. Today, we are pioneering new capabilities and partnerships to invest for the future. We are innovating alongside our customers to develop healthy, delicious products made the way consumers want. We are working with farmers and others to implement sustainable agricultural practices. And we are standing up for inclusive global trade that lets food move freely.”

Cargill’s Animal Nutrition & Protein division was the largest contributor to Cargill’s adjusted operating earnings in the fourth quarter and the full year. The protein business was fuelled by rising domestic and export demand for North American beef and steady expansion in value-added egg products, the company said. Global growth in feed additives, micronutrients and premixes for customized animal nutrition also boosted earnings for the year. Excess supplies of chicken relative to domestic demand in Thailand contributed to a moderate decrease in global poultry results in both periods.

During the year, the business invested in companies to help meet the growing demand for protein. It acquired Pollos El Bucanero, a leading retail-branded poultry business in Colombia. It formed UK-based Avara Foods, a fresh poultry joint venture with Faccenda Foods, and opened a major poultry processing plant in the Philippines with Jollibee Foods. In the US, the segment expanded facilities for fresh ground beef, and cooked meat and eggs. It also invested in Dublin-based Cainthus, an animal facial recognition start-up.

On 7 Aug, Cargill will release its annual report for the fiscal year 2018. It includes examples of how Cargill is advancing capabilities in digitalisation and analytics, risk management, sustainable supply chains, and more.

 

 

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