NEW YORK — Nutrition is about 15% of the operating profit at ADM However, the top ADM’s Chicago-based executives have been praising the platform’s potential to be the engine behind the bulk of the growth in profits in the coming years. The possibility was not even a possibility a decade ago.

“I believe that what people often don’t understand is how far is the beginning of developing this kind of business (nutrition),” Juan R. Luciano President as well as chief executive of stated in a May 18 speech at the BMO Capital Markets Global Farm to Market Conference in New York. “This is a company (that) was not in existence at the time of ADM in 2014 and a business which is expected to earn an average of upwards of $800 million of operating profits this year and possibly $1 billion of operating profits in the in the coming year.”

A figure of $1 billion is an impressive goal for a company that has a CEO who. Luciano acknowledged is still “at the very beginning.”

The optimism is derived from the fact that ADM has a clear path to grow by 15 percent to 20% over the next 5-10 years.

“We are underrepresented from a geographical perspective,” Mr. Luciano stated. “We excel in those regions that are growing the least North America and Europe, however, we’re just beginning to get started with Latin America and Asia Pacific which is basically an area where we’ve placed ourselves extremely, effectively in areas which are growing rapidly and customers that are growing quickly.”

ADM has a vast array of products that aid in nutrition, but what is more important the most important thing, the most important thing. Luciano said, is the fact that it was the first to enter the market with plans.

“We realized that we were late in this field,” he said. “So when we looked at the market we asked ourselves”How can distinguish ourselves and stand out from the crowd?’ Our method of doing that was to shift the mindset. Instead of playing in verticals with flavor and colors and even proteins we decided”I don’t wish to think of the industry as if it’s a vertical. We would like to examine the $30-$40 billion … in the general business. We introduced the idea of integrating systems into the equation. Not just (do) that we possess the most efficient pantry, but we also have the fastest time to bring the customer or department that markets a company to a product that can launch in just a few months. This, I believe is the secret to the rapid growth.”

ADM is steadily expanding its role in nutrition starting with nutrition for human beings as well as beverages and food then gradually adding pet food and biomaterials.

He. Luciano said a “high percentage” out of $1.3 billion in capital ADM will invest in 2022 and 2023 is allocated to nutrition. The company’s spokesperson did not mention ADM has any plans to make a major acquisition within the sector in the coming five years but.


“We still see of ourselves as organic growth, and an occasional add-on M&A,” he said. “I believe the recent 10 years of cheap capital have led to a sharp increase in valuations in the area of nutrition. We try to be precise and very cautious of the amount of M&A we are putting into. We believe that the valuations might be accurate and we could then modify on our financials.”