Image courtesy of CHS Inc.
CHS Inc., an agribusiness cooperative, released results for its first quarter ended Nov. 30, 2023. The company reported quarterly net income of $522.9 million compared to $782.6 million in the first quarter of fiscal year 2023.
First quarter fiscal year 2024 highlights:
"CHS earnings were strong for the first quarter, despite a relative decline from last year's record earnings," said Jay Debertin, president and CEO of CHS Inc. "Our focus on execution and efficiency improvements bolstered results across all operations. We continue to see the benefits of our diversified ag and energy portfolio, our strategic footprint and investments in our supply chain. The success of our domestic soybean and canola processing business and our international origination capabilities have helped us add value to our farmer-owners' businesses."
Energy
Pretax earnings of $266.8 million represent a $129.8 million decrease versus the prior year period and reflect:
Ag
Pretax earnings of $169.7 million represent a $117.6 million decrease versus the prior year period and reflect:
Nitrogen Production
Pretax earnings of $36.5 million represent a $60.4 million decrease versus the prior year period and reflect lower equity income from CF Nitrogen attributed to decreased market prices of urea and UAN.
Corporate and Other
Pretax earnings of $43.8 million represent a $7.1 million increase versus the prior year period, primarily reflecting increased interest income due to higher interest rates.
CHS Inc. Earnings* by Segment (in thousands $)
Three Months Ended November 30:
Energy
2023: $266,835
2022: $396,594
Ag
2023: $169,720
2022: $287,299
Nitrogen Production
2023: $36,459
2022: $96,873
Corporate and Other
2023: $43,832
2022: $36,704
Income before income taxes
2023: $516,846
2022: $817,470
Income tax (benefit) expense
2023: $(6,522)
2022: $34,554
Net income
2023: $523,368
2022: $782,916
Net income attributable to noncontrolling interests
2023: $445
2022: $318
Net income attributable to CHS Inc.
2023: $ 522,923
2022: $ 782,598
*Earnings is defined as income (loss) before income taxes.
For more information, visit www.chsinc.com.