The Andersons, Inc. Reports Improved Profitability and Strategic Growth Amid Revenue Decline

The Andersons, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period.

For Q3 2024, total sales and merchandising revenues decreased to $2,620.99 million from $3,635.69 million in Q3 2023. Despite this decline in revenue, gross profit increased to $177.13 million from $157.70 million, driven by improved margins in certain segments. Income before income taxes rose to $62.19 million, up from $38.39 million in the prior year, while net income increased to $51.46 million from $30.52 million. Net income attributable to The Andersons, Inc. was $27.37 million, compared to $9.71 million in Q3 2023, resulting in basic and diluted earnings per share of $0.80, up from $0.29 and $0.28, respectively.

For the nine months ended September 30, 2024, total revenues were $8,134.41 million, down from $11,537.11 million in the same period of 2023. Gross profit for this period decreased to $480.82 million from $527.65 million. However, income before income taxes increased significantly to $133.51 million from $77.80 million, with net income rising to $116.60 million from $54.09 million. Basic earnings per share for the nine months were $2.03, compared to $1.48 in the previous year.

Segment performance varied, with the Trade segment experiencing a revenue decline to $1,747.72 million from $2,639.06 million in Q3 2023, but income before taxes improved to $26.27 million from $8.07 million. The Renewables segment also saw a revenue decrease to $745.21 million from $868.10 million, yet income before taxes increased to $52.58 million from $47.10 million. The Nutrient & Industrial segment reported stable revenues at $128.07 million, with a loss before taxes of $6.13 million, an improvement from a loss of $8.45 million in the prior year.

The company also announced a strategic acquisition of a 65% ownership interest in Skyland Grain, LLC for $85 million, aimed at expanding its grain and fertilizer operations. This acquisition is expected to be accounted for using the acquisition method in accordance with ASC Topic 805.

As of September 30, 2024, The Andersons reported total assets of $3,388.30 million and total liabilities of $1,865.29 million, resulting in total shareholders’ equity of $1,523.01 million. The company maintained a strong cash position with cash and cash equivalents of $454.07 million, an increase from $418.06 million a year earlier.

Overall, while revenues declined, the company demonstrated improved profitability and strategic growth through acquisitions, positioning itself for future opportunities.