The Andersons Inc. on Aug. 1 reported second-quarter net income attributable to the company of $55 million ($1.61 per diluted share) and adjusted EBITDA of $144 million, down from the year-ago $80.5 million ($2.34 per share) and $169.3 million, respectively.
“Ethanol margins in the Renewables business and increased volume in our Nutrient & Industrial business led the way for the quarter,” said President and CEO Pat Bowe. “This was a significant improvement for Nutrient & Industrial after a softer first quarter. While we expected that some of the typical first quarter nutrient sales volume would shift into the second quarter, we are pleased with the extent of the recovery.”
The Nutrient & Industrial segment posted pretax income of $43 million, up from $38 million in last year’s second quarter. The segment’s second-quarter adjusted EBITDA was $52 million, up from $47 million last year.
After a slow first quarter when reduced sales reflected the falling price environment and planting delays, the company said volumes improved during the 2023 planting season, driving a 21% increase in tons sold versus the second quarter of 2022. Gross profit for the segment improved by $4 million, reflecting higher volumes partially offset by margin compression from peak levels in 2022.
Six-month group income for Nutrient & Industrial was $32.13 million on revenues of $609.5 million, down from the year-ago $49.1 million and $680.3 million, respectively. Adjusted EBITDA was $50.3 million, down from $65.6 million.
The Trade segment recorded pretax income of $5 million and adjusted pretax income of $7 million for the quarter, compared to pretax income of $24 million in the second quarter of 2022. Volumes were down and Trade results were mixed, the company said, with an overall decline in gross profit from last year’s second quarter. Trade’s second-quarter adjusted EBITDA was $27 million, down from $47 million last year.
“In our Trade segment, we had some very strong merchandising results but, as expected, did not repeat the outsized second quarter 2022 performance due to good execution following the Russian invasion of Ukraine,” Bowe said. “With the strong first quarter in Trade, which likely pulled some sales forward, our year-to-date results remain ahead of last year in this business. Geopolitical concerns continue to bring price volatility, which is typically beneficial to us.”
The Renewables segment reported pretax income of $67 million and adjusted pretax income attributable to the company of $32 million in the second quarter, down from $68 million and $46 million, respectively, in last year’s second quarter.
“We remain focused on executing within our stated strategy in our core grain and fertilizer verticals,” Bowe said. “We recently closed on the acquisition of ACJ International, a pet food ingredient supplier that fits well within our strategy for growth in the premium pet food ingredient industry. We continue to explore opportunities for growth in the merchandising of renewable diesel feedstocks, while maintaining our strong position in renewable fuels production along with potential carbon-reduction opportunities.”