The Andersons reported net income attributable to the company of $5.6 million on revenues of $2.72 billion for the first quarter ending March 31, 2024, up from the year-ago loss of $14.8 million on revenues of $3.9 billion. Adjusted EBITDA was $51.2 million, down from $55.3 million.
“Overall, our first-quarter results were fairly comparable to last year’s first quarter,” said President and CEO Pat Bowe. “Renewables doubled our 2023 results on great operating performance in our ethanol plants. We had good improvement in Nutrient & Industrial’s agricultural product lines. Trade had a tough comparison against last year’s record first quarter but posted an above average Q1 result in generally quiet ag markets.”
The company’s Nutrients & Industrial (N&L) sector posted an adjusted pretax loss of $1.9 million on sales of $167.3 million, versus the year-ago loss of $10.4 million and $163.9 million, respectively. Adjusted EBITDA was $6.9 million, up from the year-ago negative $1.3 million.
While the quarter is seasonally slow for the N&L segment, the company said the majority of the improvement was driven by increased volumes and margins in core agricultural product lines. Total group volumes were up 12% with an overall increase in margins.
The company said N&L’s second-quarter outlook remains solid, despite delayed spring application in its core geographic areas due to wet and cold weather. The company expects strong demand on normalized fertilizer prices over the next several weeks if planting conditions improve.
“We are feeling some market sluggishness, with farmers reluctant to engage in this lower-price environment and softer global demand for US crops,” Bowe said. “We are also seeing a return of carry in the wheat markets and expect an increase in the wheat storage rates.”
Bowe noted The Andersons is actively pursuing opportunities for growth across its businesses, including the recent acquisition of Reed and Perrine, a bolt-on acquisition that will result in the geographic expansion of the company’s Turf business.
“We continue to manage a very robust pipeline with significant growth opportunities in each of our businesses,” he said. “With our well-positioned balance sheet, we have good capacity for growth.”