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 that can periodically weaken leverage. Favorable long-term industry outlook for several of the company?s end markets. Periodically acquisitive. Conservative financial policies. S&P Global Ratings-adjusted EBITDA declined 8% year over year in fiscal 2024 (ended May 31, 2024), a steeper decline than our original expectations. This primarily reflects a 39% EBITDA decline in its animal nutrition and protein segment, which continues to face a prolonged downturn in U.S. cattle availability that has led to high cattle costs in beef processing. A greater-than-anticipated decline in crush margins in the company?s origination and processing

...Cargill continued to face a difficult operating outlook in many of its businesses in fiscal 2024, but we expect earnings to slowly rebound as its more cyclical businesses may have bottomed. S&P Global Ratings-adjusted EBITDA declined 8% year over year in fiscal 2024 (ended May 31, 2024), a steeper decline than our original expectations. This primarily reflects a 39% EBITDA decline in its animal nutrition and protein segment, which continues to face a prolonged downturn in U.S. cattle availability that has led to high cattle costs in beef processing. A greater-than-anticipated decline in crush margins in the company's origination and processing segment compounded the EBITDA decline, as did limited commodity trading opportunities, given low commodity prices because of high supplies and little dislocation to...

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