CHS Reports First Quarter Fiscal Year 2024 Earnings

By CHS|January 13, 2024

CHS Inc., the nation’s leading agribusiness cooperative, has 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:

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  • Earnings were strong across our segments, although down from record first quarter earnings in fiscal year 2023.
  • Revenues were $11.4 billion, compared to $12.8 billion in the first quarter of fiscal year 2023.
  • Our Energy segment experienced favorable market conditions in our refined fuels business, reflecting sustained global demand for energy products.
  • In our Ag segment, continued robust meal and oil demand drove strong earnings in our oilseed processing business that were offset by weak U.S. export demand for grains and oilseeds.
  • Equity method investments performed well, with our CF Nitrogen investment being the largest contributor.

“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.”

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Energy

Pretax earnings of $266.8 million represent a $129.8 million decrease versus the prior year period and reflect:

  • Decreased refining margins compared to the highs in the previous year due to trade flows returning to more normal levels
  • More favorable costs for renewable energy credits
  • Higher margins in our propane business

Ag

Pretax earnings of $169.7 million represent a $117.6 million decrease versus the prior year period and reflect:

  • Decreased margins for our grain and oilseed and oilseed processing businesses primarily due to mark-to-market timing adjustments and weak U.S. export demand
  • Increased demand for wholesale and retail agronomy products as selling prices remained lower due to global market conditions

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.

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CHS Inc. creates connections to empower agriculture. As a leading global agribusiness and the largest farmer-owned cooperative in the United States, CHS serves customers in 65 countries and employs nearly 10,000 people worldwide. We provide critical crop inputs, market access and risk management services that help farmers feed the world. Our diversified agronomy, grains, foods and energy businesses recorded revenues of $45.6 billion in fiscal year 2023. See all author stories here.

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