Cargill Inc.

Overview Key strengths Key risks Global leader in agribusiness Exposure to volatile commodity-based end markets Very broad product and geographic diversity Weak earnings cycles and high working capital requirements can periodically weaken leverage Favorable industry outlook for several of the company?s end markets Increasing appetite for mergers and acquisitions (M&A) could pressure leverage if earnings weaken more than expected Conservative financial policies Cargill had a second consecutive year of very strong earnings and cash flow growth, with adjusted EBITDA increasing 27% year over year in fiscal 2022 (ended May 31) following 47% growth in fiscal 2021. The growth was more concentrated in the company?s Animal Nutrition and Protein segment in 2022 compared with 2021, when its other two large segments,

...The operating outlook for many of Cargill's businesses remains favorable, but normalizing U.S. beef margins will likely offset those tailwinds. Cargill had a second consecutive year of very strong earnings and cash flow growth, with adjusted EBITDA increasing 27% year over year in fiscal 2022 (ended May 31) following 47% growth in fiscal 2021. The growth was more concentrated in the company's Animal Nutrition and Protein segment in 2022 compared with 2021, when its other two large segments, Origination and Processing and Food Ingredients and Applications (its fourth segment, Industrial and Financial Services is much smaller) also posted double-...

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