The Andersons Inc. reported fourth-quarter net income attributable to the company of $51.2 million on sales of $3.2 billion, up from the year-ago $9 million and $4.68 billion, respectively. Adjusted EBITDA was up at $135.1 million from the year-ago $103.7 million.
The Andersons said Renewables had an excellent fourth quarter with record ethanol production and strong corn to ethanol yields at the company’s four ethanol plants. In the Trade segment, the company’s eastern grain assets had good results from improving basis after a later harvest coupled with income from drying wet corn.
The Nutrient & Industrial (N&L) had a mixed quarter, the company said, with year-over-year improvement from its ag supply chain product lines.
“With these results, we are reporting a 30% year-over-year improvement in adjusted EBITDA for the quarter, leading to a full year adjusted EBITDA of $405 million, just behind last year’s record of $412 million, and well above our previously disclosed range of $350-$375 million,” said President and CEO Pat Bowe.
“Looking forward, we acknowledge a shift in fundamentals of the commodity markets with increased global stocks,” Bowe continued. “Our mix of North American storage and ethanol production assets and combined with strength in merchandising positions us well to benefit from these market shifts.”
Bowe said the company saw good results from recent investments in ingredients supplied for pet and human consumption. “We are actively pursuing opportunities for growth in the Renewables space, including carbon reduction plans and increased renewable diesel feedstock merchandising,” he noted, adding that the company has “a robust pipeline of opportunities that include both investment in our facilities and M&A with a strong balance sheet to support this growth.”
The Andersons reported full-year net income attributed to the company of $101.2 million on sales of $14.8 billion, down from the year-ago $131.1 million and $17.3 billion. Adjusted EBITDA was $405.1 million compared to 2022’s $412 million.
The N&L segment reported fourth-quarter net income of $1.4 million from continuing operations attributable to the company, down from the year-ago $1.72 million. Adjusted net income for the segment was up at $2.1 million, with the company citing higher volumes of core agriculture products. The company said it remains optimistic for a good spring application season as nutrient prices have stabilized and farm economics should still incentivize application of crop inputs.
“Even with an expected reduction in farmer income, we continue to anticipate solid demand for fertilizer and specialty liquids that we supply our N&L segment,” Bowe told analysts.
“In our turf products lines, we are taking steps to improve our operations and continue to look for further opportunities in this space,” he added. “We continue to explore North American agricultural growth opportunities.”
Fourth-quarter N&L results included a $2 million charge relating to a standstill agreement for an acquisition that the company elected not to pursue.
Fourth-quarter N&L sales were down at $205.3 million from the year-ago $255.1 million, while adjusted EBITDA from continuing operations was $11.2 million, up from the year-ago $10.5 million.
Full-year N&L income was $25 million on sales of $943.4 million, down from the year-ago $39.2 million and $1.1 billion. Adjusted EBITDA was $62 million, down from 2022’s $73.1 million.