Monsanto reported net sales down ten percent and profits 42 percent lower in Fiscal Year 2016. Monsanto had net sales of $2.6 billion dollars in fiscal year 2016, with net sales for the full fiscal year at $13.5 billion. Full net sales were down year-over-year thanks to currency challenges and price declines in agricultural productivity. Seeds and genomic net sales were $1.6 billion in the fourth quarter, and totaled $10 billion for the year. Ag productivity sales were $997 million for the quarter and for the fiscal year were $3.5 billion. The company’s expenses were flat year-over-year on an as-reported basis. Expenses increased primarily due to $280 million in PCB litigation. Research and Development costs decreased slightly due to currency and transformation cost savings. Monsanto reported a net loss of $191 million in the fourth quarter of 2016 compared to a net loss of $495 million at the same time last year. Net income for 2016 was $1.3 billion, compared to $2.3 billion in income the year before.
Cargill’s largest contributor to adjusted operating earnings in the first quarter was the Animal Nutrition and Protein Division. The beef business led the way in profitability, which was helped by higher numbers of cattle in the supply chain as well as consumer demand for more beef. The poultry-based divisions, along with turkey and egg businesses, were more profitable than they were in the previous year. Animal nutrition product sales grew in Asia and North America, contributing to the strong growth as well. Aqua Feed sales were down in some countries due to weather-related incidents. The segment’s new aqua nutrition unit offset part of the impact with its overall sales strength. Cargill wants to grow its protein portfolio, so it purchased Five Star Custom Foods, which specializes in cooked protein products for food service and food manufacturing sectors.
Source: NAFB News Service