Cargill boosted by protein business performance in Q2

Cargill recorded second-quarter revenues 4% higher than the year-ago period thanks in part to the performance of its protein operations.

The Minnesota-based company said its protein businesses around the world were well prepared to meet opportunities from country-by-country changes in demand and shifts in global protein flows due to African swine fever. Revenues for the quarter stood at $29.2 billion.

Adjusted operating earnings were $1.02 billion, up 19% from $853 million last year. Net earnings for the quarter were $1.19 billion, up 61% from a year ago.

Adjusted operating earnings increased in two of Cargill’s four business segments: Animal Nutrition & Protein, and Industrial & Financial Services. They declined in Origination & Processing and Food Ingredients & Applications.

Cargill said several global product lines of food ingredients saw softer results, including starches and sweeteners in Europe and Brazil, and edible oils in South America. Strong product deliveries kept cocoa and chocolate results near even with last year.

“We saw very good execution from our global teams throughout the quarter, as they focused on delivering what matters for our customers,” said Dave MacLennan, Cargill chairman and chief executive officer.

“Our ongoing transformation, as well as recent acquisitions and expanded capabilities, are all helping us continue to raise our performance.”

During the quarter, Cargill and its joint venture partner Royal DSM began commercial-scale production of EverSweet stevia sweetener at Cargill’s $50 million fermentation facility in Blair, Nebraska. 

Cargill said the innovation “has significant growth potential” because it’s well-suited for many kinds of food and beverage applications such as soft drinks, flavoured waters and teas, smoothies, yogurts, confections and ice creams. More than 300 customer trials and product development projects are currently in progress.

Last month, Cargill announced an investment of $113 million to expand its cocoa processing sites in the Ivory Coast and Ghana.