CHS Inc. reported a significant decline in financial performance for the second quarter of fiscal 2025, with revenues totaling $7.8 billion, down 14.2% from $9.1 billion in the same period last year. The company's net loss attributable to CHS Inc. was $75.8 million, compared to a net income of $170.3 million in the prior year. For the first six months of the fiscal year, revenues also fell to $17.1 billion from $20.5 billion, resulting in a net income of $169.6 million, down from $693.7 million in the previous year.
The decline in revenue and profitability was attributed to several factors, including lower margins in both the Energy and Ag segments. The Energy segment faced reduced refining margins due to unfavorable market conditions, while the Ag segment experienced decreased grain and oilseed margins amid a competitive global marketplace. Additionally, the company reported a significant increase in costs associated with goods sold, which rose to $16.6 billion for the six months ended February 28, 2025, compared to $19.5 billion in the prior year.
In terms of strategic developments, CHS completed the acquisition of West Central Ag Services (WCAS) on January 2, 2025, for an estimated cash purchase price of $321.6 million. This acquisition is expected to enhance CHS's grain and agronomy platforms in Minnesota and North Dakota. The company also reported a decrease in its employee headcount, reflecting ongoing efforts to streamline operations in response to market conditions.
Operationally, CHS's total assets increased to $20.1 billion as of February 28, 2025, up from $18.7 billion at the end of the previous fiscal year. However, the company's cash and cash equivalents decreased significantly to $433.3 million from $794.9 million. The current ratio, a measure of liquidity, fell to 1.4 from 1.6, indicating tighter liquidity conditions. Looking ahead, CHS anticipates continued challenges in the energy and agricultural commodity markets, driven by macroeconomic factors such as trade policy uncertainties and global supply chain disruptions. The company remains focused on executing its strategic priorities while navigating these less favorable market conditions.
About CHS INC
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