Global grain trader Archer-Daniels-Midland Co has reported a 74% rise in second-quarter profit, benefiting from high demand for grains and tighter supplies following Russia's invasion of Ukraine.
ADM and its peers have benefited from increased demand for crops they ship around the world after Russia's invasion of Ukraine cut off shipments from the breadbasket region around the Black Sea.
Supply chain middlemen such as ADM thrive when crises such as droughts or war trigger commodity shortages.
"Looking forward, we expect the combination of our strategic actions and continued good demand for our products to propel very strong earnings in the second half of 2022, with strong cash flows enabling us to accelerate approximately $1 billion (€980 million) in share repurchases into the back half of the year," chief executive officer, Juan Luciano, said.
Robust demand boosted for alternative proteins helped drive a 19% rise in operating profit at ADM's Nutrition unit, while adjusted operating profit in its core agricultural services and oilseeds unit rose to $1.12 billion (€1.10 billion) from $570 million (€558.5 million) last year.
Net earnings attributable to ADM were $1.24 billion, or $2.18 per share, in the three months ended June 30, compared with $712 million, or $1.26 per share, a year earlier.
In April of this year, global farm commodities merchant Bunge Ltd reported a higher quarterly adjusted profit and raised its full-year earnings forecast by 21% on robust demand and tighter supplies of essential crops since Russia's invasion of Ukraine.