Operating profits for the Archer-Daniels-Midland Company (ADM) Animal Nutrition dropped from US$52 million in the fourth quarter of calendar year 2022, a decline of 17%. However, for the whole of 2022, ADM’s animal nutrition segment profits reached US$170 million, increasing 16% from US$154 million in the previous year.
“Animal nutrition results were substantially lower than the prior-year quarter, primarily due to lower margins in amino acids driven by recovery in the global supply of lysine; pet nutrition volumes were lower in Latin America, partially driven by demand fulfillment challenges,” ADM representatives wrote in press release. “Feed results were stronger, driven by APAC and Latin America, partially offset by the impact of softer demand in EMEA.”
About ADM pet nutrition division
ADM Animal Nutrition acquired Crosswinds in 2017, followed by global platform Neovia in 2019.
In 2021, ADM, provider of pet, livestock and human food ingredients, acquired a 75% ownership stake in private label pet treats and supplements maker P4, made up of PetDine, Pedigree Ovens, The Pound Bakery and NutraDine. The transaction valued the four enterprises in their entirety at approximately US$600 million. ADM also acquired P4’s 300,000+ square feet of production and innovation facilities in Illinois and Colorado.
With more than 300 employees, P4 Companies provides a range of customized pet treat and supplement products to more than 650 customers in 15 countries. Their offerings include baked treats, semi‐moist treats, long goods, blends, unique proteins, soft chews, liquids and powders, many of which are developed to meet the demand for clean labels. P4 has delivered strong revenue and profit growth in recent years, according to the company, and has invested in new product lines as well as expanded its production capacity.
In 2022, ADM completed the acquisition of the remaining 40% shareholding of Invivo Sanpo, a pet nutrition company located in Tianjin, China.
