World Grain - August 2021 - 10

NEWS REVIEW
Ardent Mills earnings jump 17% in 2021
CHICAGO, ILLINOIS, US - Earnings after income taxes
of Ardent Mills LLC totaled $169.6 million in the year ended
May 30, up 17%, from $144.5 million in 2020. Excluding a
gain of $4.1 million a year earlier, Ardent Mills earnings in
fiscal 2021 were up 21%. Sales were $3.4 billion, up 0.4%
from the year before.
Results for Ardent Mills were included in the Form 10-K
filed July 23 with the Securities and Exchange Commission
by Conagra Brands, Inc.
In unusually brief commentary, Conagra said the strong results
for fiscal 2021 " reflected favorable market conditions. "
Total dividends paid to Conagra in fiscal 2021 from its equity
method investments were $56.5 million. Ardent Mills
accounted for 89.7% of income earned from the company's
equity method investments in fiscal 2021. Dividends paid to
Conagra in fiscal 2020 from equity method investments were
$51.4 million.
During fiscal 2021, Conagra took a non-cash income tax
benefit of $115.6 million associated with a restructuring of
the company's ownership interest in the Ardent Mills joint
venture. Conagra said the restructuring " primarily relates to
a release of a valuation allowance due to the generation of
capital gains. " Conagra said it used " a portion of our capital
loss carryforward prior to its expiration. "
Based on the 10-K and reports issued by Conagra earlier
in the year, the company's share of equity method investment
earnings in the fourth quarter ended May 30 were
$33.3 million, up 45% from $22.9 million in the fourth
quarter of fiscal 2020. For the full year, Conagra's share of
earnings from its equity method investment earnings was
$84.4 million and $73.2 million for fiscal 2021 and 2020,
respectively.
The carrying value of Conagra's equity method investments
at the end of the 2021 fiscal year was $841.8 million, up 5.4%
from $798.7 million a year earlier. The carrying value is based
on Conagra's 44% ownership of Ardent Mills and 50% stake
in a second, smaller joint venture.
Other shareholders of Ardent Mills include Cargill, 44%,
and CHS, Inc., 12%. Established in 2014, Ardent Mills is the
largest flour milling company in the United States.
ADM acquires manufacturer of non-GMO soy ingredients
CHICAGO, ILLINOIS, US - Archer Daniels Midland Co.
(ADM) announced on July 26 that it has reached an agreement
to acquire Sojaprotein, a leading European provider of
non-GMO soy ingredients.
Established in 1977, Serbia-based Sojaprotein has sales
into 65 countries, offering a wide array of non-GMO vegetable
protein ingredients for an extensive list of European and
global customers in the meat alternative, confectionery, protein
bar, pharmaceutical, pet food, and animal feed segments.
The company had more than $100 million in sales in 2020.
" Thirty years ago, ADM invented the soy vegetable burger,
giving rise to the plant-based protein segment, " said Leticia
Gonçalves, president of Global Foods at ADM. " Today, alternative
proteins represent one of our core growth platforms,
and as this $10 billion global industry grows to $30 billion
over the next decade, we are investing to expand our unparalleled
capabilities.
" The addition of Sojaprotein - the largest producer of
plant-based protein in southern Europe - adds production
capacity in addition to an impressive network of customers
who are leading the way in meeting consumer needs for nutritious
and responsible plant-based foods and beverages. We're
particularly excited for the opportunity to work together to
meet the fast-growing demand of European consumers who
prioritize locally sourced, non-GMO ingredients in their food
and beverages. "
Aleksandar Kostić, vice president of MK Group, the majority
owner of Sojaprotein, said the agreement testifies to the
sustainable business models that MK Group is implementing,
as an investment company with a diversified portfolio of
value-added industries in Southeastern Europe.
" This is yet another confirmation of the proven track record
of our management, as well as the global recognition of
the world-class quality of our non-GMO soybean products, "
Kostic said.
The addition would build on ADM's recent investments
in alternative proteins, including the company's soy protein
complex in Campo Grande, Mato Grosso do Sul, Brazil; its
new pea protein plant in Enderlin, North Dakota, US; and its
PlantPlus Foods joint venture.
A Note to Our Readers
World Grain knows how important it is to have timely access to the vital industry information and insights we provide.
In addition to our industry-leading print editions, you can always stay engaged wherever you are with our digital editions
at world-grain.com/digital_editions, and get the latest news first by signing up for World Grain's newsletters at worldgrain.com/Newsletter_Subscriptions.
For
assistance, please email us at subscriptions@sosland.com.
10
August 2021 / World Grain / www.World-Grain.com

http://www.world-grain.com/digital_editions http://wwwworld-grain.com/Newsletter_Subscriptions http://www.World-Grain.com

World Grain - August 2021

Table of Contents for the Digital Edition of World Grain - August 2021