ADM completed acquisitions of Revela Foods and FDL in January 2024, expanding capabilities in dairy flavor ingredients and premium flavor systems. These acquisitions align with ADM's strategy to grow its Nutrition segment by adding innovative ingredients and solutions.

Capital expenditures for the six months ended June 30, 2024 were $0.7 billion, comparable to the same period last year. This sustained level of investment indicates a commitment to maintaining and upgrading existing facilities and expanding capacity to support future growth initiatives.

ADM repurchased $2.3 billion of shares during the six months ended June 30, 2024, reflecting a continued commitment to returning capital to shareholders. The company has 14.8 million shares remaining under its existing repurchase program.

ADM is cooperating with a voluntary document request from the SEC relating to intersegment sales between the Nutrition segment and other segments. The company is undertaking an internal investigation. This could be a distraction for management.

The Company is implementing enhancements to its internal controls to remediate the identified material weakness in its internal control over financial reporting related to the Company's accounting practices and procedures for intersegment sales. This could be a distraction for management.

The Productivity pillar of ADM's strategic transformation focuses on optimizing costs, improving production volumes, and implementing standardized business processes. This initiative aims to enhance operational efficiency and drive margin improvement.

The company acknowledges that the availability and prices of agricultural commodities are subject to wide fluctuations due to factors such as changes in weather conditions, crop disease, plantings, government programs and policies, competition, changes in global demand, changes in customer preferences and standards of living, and global production of similar and competitive crops.

The Company is routinely involved in a number of actual or threatened legal actions, including those involving alleged personal injuries, employment law, product liability, intellectual property, environmental issues, alleged tax liability, and class actions. The company is unable to predict the final outcome of these proceedings with any reasonable degree of certainty, but believes the outcome will not have a material adverse effect on its financial condition, results of operations, or cash flows.

The Company received a voluntary document request from the SEC relating to intersegment sales between the Company's Nutrition reporting segment and the Company's Ag Services and Oilseeds and Carbohydrate Solutions reporting segments, and subsequently received additional document requests from the SEC. The Company is cooperating with the SEC. The Company is unable to predict the final outcome of these investigations with any reasonable degree of certainty.

The report notes that following two years of very favorable market conditions, several headwinds in the agriculture cycle led to more normalized results throughout the entire value chain. This suggests increased competition and a more challenging environment to maintain market share.

ADM is committed to eliminating deforestation from all of the Company's supply chains by 2025. In 2023, after a strategic investigation of the impact of conversion of native habitats in its key supply chains, the Company announced its commitment to eliminate conversion of native habitats in high risk areas in South America for direct suppliers of all commodities by 2025 and indirect suppliers by 2027, with a 2025 cutoff date (a date after which conversion of primary native vegetation renders a given area or production unit non-compliant) for both direct and indirect suppliers.

ADM aims to reduce its absolute water withdrawal by 10%, from a 2019 baseline, by 2035, and ADM aims to increase its use of low-carbon energy sources to 25% of total energy used by 2035.

Manufacturing expenses increased $20 million to $1.9 billion due principally to higher salaries and benefit costs, maintenance costs, and commercial services, partially offset by lower energy costs. This indicates potential challenges in managing operating costs effectively.

The Productivity pillar includes (1) partnering across various global teams including procurement, supply chain, operations, and commercial to optimize costs and improve production volumes across the enterprise; (2) continued roll out of the 1ADM business transformation program and implementation of improved standardized business processes; and (3) increased use of technology, data analytics, and automation at production facilities, in offices, and with customers to improve efficiencies and customer service.

The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions. This indicates a focus on maximizing asset utilization.

ADM plans to support the three pillars with investments in technology, which include expanding digital capabilities and investing further in research and development.

ADM is continually finding new ways to meet those needs through its portfolio actions.

Innovation pillar includes expansions and investments in (1) improving the customer experience by leveraging producer relationships and enhancing the use of state-of-the-art digital technology

ADM repurchased $2.3 billion of shares during the six months ended June 30, 2024, reflecting a continued commitment to returning capital to shareholders. The company has 14.8 million shares remaining under its existing repurchase program.

Capital expenditures for the six months ended June 30, 2024 were $0.7 billion, comparable to the same period last year. This sustained level of investment indicates a commitment to maintaining and upgrading existing facilities and expanding capacity to support future growth initiatives.

In 2024, the Company expects total capital expenditures of approximately $1.4 billion and additional cash outlays of approximately $1.0 billion in dividends and $2.3 billion in share repurchases, subject to other strategic uses of capital and the evolution of operating cash flows and the working capital position throughout the year.

ADM is committed to eliminating deforestation from all of the Company's supply chains by 2025. In 2023, after a strategic investigation of the impact of conversion of native habitats in its key supply chains, the Company announced its commitment to eliminate conversion of native habitats in high risk areas in South America for direct suppliers of all commodities by 2025 and indirect suppliers by 2027, with a 2025 cutoff date (a date after which conversion of primary native vegetation renders a given area or production unit non-compliant) for both direct and indirect suppliers.

ADM aims to reduce its absolute water withdrawal by 10%, from a 2019 baseline, by 2035, and ADM aims to increase its use of low-carbon energy sources to 25% of total energy used by 2035.

ADM's policy to protect forests, biodiversity, and communities includes provisions that promote conservation of water resources and biodiversity in agricultural landscapes, promote solutions to reduce climate change and greenhouse gas emissions, and support agriculture as a means to advance sustainable development by reducing poverty and increasing food security.

Ag Services and Oilseeds operating profit decreased 56%. Ag Services results were lower than the second quarter of 2023 due to the stabilization of trade flows leading to lower global trade and risk management results. In South America, slower farmer selling led to much lower margins.

Carbohydrate Solutions operating profit increased 12%. Starches and Sweeteners results were higher year-over-year as strong starches and sweeteners margins and higher volumes were partially offset by lower domestic ethanol margins, as well as

Nutrition operating profit decreased 36%. Human Nutrition results were lower than the second quarter of 2023 as impacts related to unplanned downtime at Decatur East, a normalizing texturants market, and higher manufacturing costs negatively impacted margins.