ANDE - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen. Welcome to The Andersons 2024 First Quarter Earnings Conference Call. My name is Rocco, and I will be your coordinator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.I will now hand the presentation to your host for today, Mr. Mike Hoelter, Vice President, Corporate Controller and Investor Relations. proceed. Please

Michael Hoelter

morning, first you quarter Good for joining and Andersons The earnings everyone, Rocco. for thank us Thanks, call.

We that have will presentation enhance today's provided discussion. a slide

well happy Operating today Chief President take Officer. Vice Officer; your Brian After Pat. the President call the are prepared are Valentine, included to Pat a statement our commentary If over of differ to constitutes the as result as measures. in company's in recorded, are press call Krueger, our Investors today's encourage shortly.Please be factors.This results We turn and the Actual review that on and the the andersonsinc.com This our various X with appendix presentation conditions. made viewing to and you GAAP disclaimers Slide materially being on as prepared direct this factors, Certain forward-looking these you from we industry Executive the of could non-GAAP website the and non-GAAP and questions.I Officer; respect and the These recording to slides me presentation release to to of the Bowe, which Chief are risks webcast is at file be Reconciliations statements. contain slides be the will future the financial SEC. will statements forward-looking and your page and supporting measures information reflect Bill and performance subject to Executive will the with events, in current with described available company's sync. this uncertainties. related Chief forward-looking within now the to views discussed disclosure webcast, remarks presentation.On many financial remarks, of attention reports Financial today will statements on are

Patrick Bowe

outlook for good call discuss XXXX. first the our and and this Thank remainder you you, our Thank quarter morning, to morning results of Mike, everyone. for joining

results of were renewables record for and company solid against favorable results different and The a teams transitioning comparable first the results results mix to overall, a our down work quarter generating bit very year. safety. year's their trade First our in is want in on thank last for Industrial quarter to last these operating continuing hard markets in Nutrient against producing focus and both XXXX.I with with

prices margins fourth helped business, merchandising ethanol diesel hedges growth factors have recent production the yields. increasing As margins.We benefiting also for gas during worldwide and challenged Coupled our record price accretive forward but X start Trade in primarily in solid lower business business to farmers from ethanol had teams.Our crush executed become supply year as and smaller The been but impacted ethanol a grain improvement assets more been pet these balanced. renewable feedstock These driven growing organic sales and in our both is slower both volume the team saw and food by was had very and a first the food Trade demand from and ingredients lower from and Renewables This U.S. the with our strong crops improvement. is We ethanol as has and quarter industry operations our successful levels. in merchandising have year-over-year comes efficient our to of significant are plants. reluctant compressed at physical business, fundamentals. quarter a acquisitions.Operating portion premium natural demand global this expected, softer engage performance our on

cover Nutrient experienced agricultural commodity and in margin values lines slow fertilizer the price some outlook Industrial business, key for XXXX. now environment.In from improved Our significantly weaker we'll financial back were discuss After that, data. Results we also of quarter. of first our Brian? remainder in the product be and with our XXXX.Brian the seasonally will the lower feed co-product increased were the of to an our overall volume quarter

Brian Valentine

income to $X.XX the first XXXX.Adjusted the and a XXXX, quarter, improvement, now Renewables share. million Nutrient in $X $X.XX XXXX, the a by Industrial good the our of per EBITDA quarter million diluted first compared first and diluted which million quarter everyone. or the $XX to quarter quarter and totaled turning net and Andersons both comparable of #X. loss $XX This of adjusted or million per in attributable months results first of share million. XX showing Pat, In million Thanks, Slide for of $X Trailing XXXX. pretax share for in adjusted the company quarter decline in or diluted with $X offset of per the million EBITDA was earnings to was were million on compares Trade.Adjusted income $XX adjusted to net The $X.XX $X first morning, net We're EBITDA of reported to year-over-year $XXX

in and XXXX, changes generated quarter operations in taxes million XX%.Next, rate. from effective each debt. capital Our quarter a move to to year X before strong adjusted full between interests. income of quarter on changing cash expect consistently to $XX discuss XX% we'll ability cash We amount or Slide primarily We now We rate the the our to working noncontrolling at markets. of flows for rate of recorded in generate attributable X% a first operating based loss varies tax effective liquidity and demonstrating effective tax the cash, tax flows

flow short-term look on debt a the cash delayed the take spending Our of resulted combined with we'll quarter.Next, capital and lower negligible X. long-term at at commodity and Slide prices end generation, farmer engagement, borrowings in

which to responsible the we a which to capital spending of be $XXX disciplined, expect for investments, half related We and to approach maintenance roughly continue year, is capital. million take to million typically will approximately $XXX

our support balance and have financial with currently X.Xx.We Our long-term criteria. our is of which less capacity than meet well a debt sheet to below to EBITDA less X.Xx, that investments target stated strategic significant than is growth

continue in projects evaluate pipeline, M&A opportunities. our growth including additional We to

Our of record to first We income a growth portfolio quarter results active execute announced opportunities and months, the excited few of our $XX our of quarter. businesses, in been expanding in additional and compared about of beginning in with to of pretax Slide $X each Trade acquisition on our mixed projects, income Trade a over $X adjusted Trade million, increasingly period million XXXX recently to our geographic when operating we'll potential pretax pipeline same business.Now XXXX. had reported project compared X. business on move including the first million our acquisition of to the on Reed reach Perrine, and has are past review turf bolt-on we

the financial results assets our forward regions. commodity were relatively grain Pat The with $XX Trade's hesitant prudently limited consistent to and producers quarter $XX certain led corn were brought volatility.In prices, our As to and in sell a domestic market. million EBITDA quarter lower of to less are income down additional Slide of in once compared intentionally in on given food strong attributable to prices was in combined and results -- start million compared in the million back capacity, for million solid, sell first assets Renewables basis with of of lower geopolitical a improved commodity our had aggregate to year-over-year results the well ingredient as adjusted and still quarter, due pulled mentioned, activity first to are of dynamic basis grain food Investments for pet recent unrest, year.Our the positioned premium growth to have merchandising including adjusted first U.S. the grains to company backdrop less X. to addition, million to businesses businesses. $X we market are and generating XXXX. very $XX but projects, an appreciation in acquisitions food XXXX.Moving a the pretax $XX on quarter

of XXXX. first strong, in stronger Overall, to agricultural to driven year.Turning adjusted fertilizer at Slide current compared diesel EBITDA lower of quarter an million we The first Renewable million executed margin a doubled the back in grow, in to quarter ethanol volumes quarter.Production operate and Pat XXXX. stabilized the record to is are quarter to XX. and production of million product with XXXX.And improvement Feed to favorable the in in of seeing The and turn margins and and comments demand $X business quarter outlook crush is earnings last I'll million a of Industrial $XX gas fundamentals. had was of reported that, the to quarter, some corn.Renewables first $X value first and prices compared during the hedges Our ingredient lines. for pretax the Nutrient of quarter of $XX over but $X slow million about in feedstock continued natural increased price margin $XX the of first ethanol EBITDA remainder margins prices. year-over-year lower for continue facilities compression fourth year-over-year had Industrial on EBITDA efficiently million loss $XX to by volumes core it as also our a with industry to for things of million quarter. tied EBITDA seasonally the loss but quarter due Nutrient loss compared

Patrick Bowe

Thanks, a against market Brian. changing We outlook XXXX our remain positive about environment.

focus to results carry years demonstrate markets, of volatile in us good assets. on value the demand to more will markets last balance the now demand-driven few and supply While of global a brought grain our ability with allow us our deliver

quarter, Trade volatility We fertilizer strong global in weather, engine needed.We feedstock After and also a toward expected spring growth will although to also we looks business continue the that growth first to company. season.In with continue wheat the end, higher, fourth typical of refinery in for and reduced Renewables excited season.Our our outstanding income to work this due production.Our premium for but expect we to from users Subsequent that positive our in intensity At of shutdowns carry and our This geography for pockets business both ingredient lowering that on we continue and critical is our best The weather. markets, segments. our turf to we have in liquids and as it on positive more the improvements We're programs should X an renewable solid strong. QX growth volume includes outlook. well maintaining acquire believe located planting diesel operational as the fertilizer to make supply. spring from Coast.So organically production to Improving The to both significant segment forward purchases weather-related business margins pockets X look Industrial of cancellations on wheat China the and recently future.The have that Reed completed outlook in supply a acquisitions.Our our the have ready carbon in end has normal grow sheet to demand turf their significant to optimal customers planting supportive year-over-year reach the of returned business lowered crucial our efficiency ever. both increased typical expect their about Perrine, result. the fertilizers acquisition to expectations us. we strategy, the very renewable is of important feed China of outlook and lower for and as and and business reduced a with application remains to and is second reduce feedstock a and balance input mix. leading our of farmers services the strong during our to bring our and farmer important a which when is harvest, is delays U.S. desire we storage an merchandising of that we prices margin us our remains at with as in which caused we're ethanol. demand Nutrient to corn remains products build in February, application expands the position a and part volumes X with continue acknowledge through to to wet into quarter. ag manufacturer anticipate have this each levels carbon for wheat growth, facilities facilities solid, all while sizable business enhancements outlook could our the quarter, opportunities to And East pleased to begun successfully additional geographic progress support maintenance Markets large of recently growing food more We're closed wet and contracting. full resulted with and purchases for We our XXXX, the this return position Renewables talked portion also a time, New in move a of compression is production experienced this supply and that quarter season we that for specialty stabilize.The Jersey also business the continue about diesel

we'll We'll continue our on questions. strategy.With within maximize your to initiatives a back and growth as also acquisition achieve have is very that things EBITDA help changes should maintain take ag value we number that, our organic customers markets, as organic million. I'll decisions well $XXX in a of shareholder and We focusing us that on of our target robust. rate execute turn as our growth we're benefit and and over the XXXX and maximize With our response Rocco, pipeline opportunities run opportunities that to stated

Operator

with Ben Today's [Operator Instructions] from question first Bienvenu Stephens. comes

Ben Bienvenu

through If laid of out remainder associated and of that to maybe of of balanced, the the the business, in comparison you're crop a with Pat, in earnings Help market, year, geopolitical a Trade weak about, that, But large maybe those risks the of all kind thinking net the for and you contribution how the Trade volatile carry factors, from think about a all I us pretax backdrop. now business? the U.S. think the of here more in the takes puts kind of uncertainty year-over-year pullback less

Patrick Bowe

do. over Ben. Sure. knows to A turn question, I better good it it then than get very started who Bill I'll it and

interesting about us the we think thing is our the of to portfolio. balance about think talk I

us the wheat is So carries the for market. the back news good coming to

our that markets, assets, of you we be to a with of of at a of had way we even will had side, prices through trading nice haven't positioned quite us that's there a some that customers eastern at As with as buy not -- the wanting that's carry the really earning of the book know, asks for different.So to ago soft in which year, year. ahead very of historically, took some we're wanting our that just lower source selling change something this going well But advantage for storage inverse a income to do point-to-point we forward. engagement on go to we crop or and our wheat lot income year farmer traditional inventories elevators. volatility us, tight But

the farmers what's see think I coming.

a have With pop work more who farmer in we've over a Bill, year further. of little through their they have different position. course I'll confident able the have merchandising turn be if just through And to we better And planting, a like little seen fashion. it elaborate to these we'll we'll can recently, the engagement.

William Krueger

waiting. producers You is, Ben, kind combination the had been only in thing by end had to users than the for. items, commented rewarded were Pat you add there QX, what used of I'd had a being right? lower of The prices had

saw lot just fewer we a So occurring. transactions

we're And end into planting a had least pick are the at about corn activity talked as very, users and getting rally, doing lot we're up. this that before, more recent currently, seeing we've very U.S., your Now we've our well. in

But as dictates. a that our not lot today, the we changes we're time, XXXX the of end be look forward positioned And to on up the merchandising a going which cheap anticipate in expected So as we're have into feel to volatility fall any less and there. benefit able basis see like the actually same we businesses. that don't likely to crops, we at really with accumulate market capacity harvest marketplace we well.We're able assuming we will trade

Patrick Bowe

other you that. Ben. add well, poultry pet primarily know well millers, business. as I now. just right this focused know not so towards maybe thing to ethanol, don't suppliers, as and domestic But which food tilted just one We beef, we flour swine, those food pool, on much export we're customers so really exports, big And have more our as

those diversification our we we expect and the to especially us. customers, area pet closely and we've a years, nice kind in the portfolio diversifies several be food support the for food and over domestically, last work with that So of done

Ben Bienvenu

about good. of grain kind U.S. sort positioning accumulating Thinking guys of Very suppose, domestic allocation you strategically been in capital and have of swimming upstream, Okay. business, assets. I the

to out away larger are selling from differently? yours is in competitors leaning make backdrop attractive doing And asset exposure. it of to some that it Some are where the of How business? or guys of you been your businesses? to Why moving a have it does allocate why competitors for you capital you of sense those

William Krueger

I'll Ben. take that,

fact, the positively. we've to our been last asset over years, trimmed remaining and X portfolio back utilize look actually have very in able you assets If our

some The do good value user to connection a the from as years. the of the that ag that able manage customers.So other in to assets manage difference ability having of able products couple some way of that the and believe on to last have you logistics, those with have, on our we we producer, being we mentioned, with later have all is we talk see the be we'll work the regenerative be competitors, been to we've that producers, in to the working versus through risk end we our the supplier

in chain And ag see across North that we our fit so supply America.

Patrick Bowe

And too, assets that, one to is Maybe Tennessee what which previous we our our that, in just sold had to portfolio. We said, Bill Illinois, Champaign, add assets. modify Iowa. we to Ben, to on we of echo sold did biggest and

investments we a assets. corn. our in in we've have made bit of grain done grade that acquisitions into bolt-on pet food and of kind footprint had little we A the lot So been food shrunk

niches ourselves we're to Bill well around how of plants, ethanol we're and carbon ag the we we where that. working a of working mentioned, growers those with trying could working parts low position be with on provider regenerative differentiate.And kind and portfolio can or So on our now

grain for portfolio of It's grain really about give margins. it's sakes do we how just higher us So assets a assets that our kind broaden our focus. isn't

Ben Bienvenu

ask good. I could Very ethanol question, more Okay. Very My on one helpful. if last just the business.

inkling production You summer with talk as there. bit enter see outlook where we had inventory, season what the kind you to and expectations industry? about kind your demand little of of a of we respect the positive driving kind export are across Can a of days of

William Krueger

Yes, I will start with that Ben. also, one

we If ethanol you see exports QX XX-plus XXXX up over exports that will an increase at believe percent calendar look XXXX. year-on-year,

that expect We to continue.

we on the passed everyone knows, As waiver did get EXX.

So we we'll we see able that as year. kind end of opportunities being really the management plants capabilities, really our to to strong really that this risk demand. view And importantly, are ethanol manage of continue continued the towards to production best-in-class more results through target some see able and of our and the

renewables And section.Pat feedstock renewable so feel grow pretty our continues on in volume. we hit the to on do diesel positive business

there Our online in the continue value, in growth plants customers the this seen to uptake some that we RD compression slow our the come at margin continue have and to see supply chain, of bring capacity. But or full due ability run to for to part of volume.

Patrick Bowe

[indiscernible] is quality this. over that? programs can outlook high-volume big for low long SaaS more sustainable our what can for focus down us fuel assets want far I the Bill, our to to run, maybe of to -- position market. to and the We last assets like the scale, the important plants maybe, more you CI, be supply And saw as the big week as ethanol government some road. comment and aviation add we And for out And were regenerative be ag on Bill think

William Krueger

Yes.

to of that working longer couple pathway in been XXZ. the and have XX months aggressively making situations in sure we a We last achieve have a

We East. have the good geological in footprint

our We plant. have to pipeline runs the -- Denison, obviously, close very Iowa

So ethanol we of have a like our feel for we pathway all plants.

the pace move we the opportunities good and being we we do choosing but Some there. us quickest. at want that to the most some others to selectively And than are have will the closer feel plants like very we're bring that value executed,

Operator

Lake question Capital Street And our Klieve comes next Markets. from at Ben

Benjamin Klieve

that like administration opportunity. a continue here for lot opportunity. wide you practices kind curious, the seems talked heard I'm interesting bit some of that get Or lot the not the also years? various little And to I'd opportunity, with really really this I've going to a ag jet supporting regarding are about encouraged the this ethanol within that of footprint of it are they're out participate indifferent to news your sense ethanol for the kind that conversation very be regenerative implementing thought last isn't this going on the jet time.Do of to next that is ranging. just to in? the a enthusiasm ethanol facilities there's over takes or be existing It's you of your implementable week the different of all something initiatives to going that few pretty farmers your practically

William Krueger

have pretty believe Well, do going X to of X will at assumption practices can that geographically, look we've optionality, XXB we different of been producers making are they're to at geographies you they're X continue I going or and and be those to use.But where to hope talk crop I XXZ. on other over the means several them, years. be use providing utilize able they have enhanced practices able they management good to The risk whether our are the bundling, the about And be where fertilizer to that going to the also no-till they that, last from all on unbundled to that cover X to that apply and you likely efficiency each producers negative they're able the administration's -- be in which heard unbundled, the are profitability. which around -- will their are what of enhance the in you can related comments think all primarily that focused

the going XXZ, likely decoupled is bundling but general, in is will that be it not our today So a in be. it's to challenge belief if

Patrick Bowe

So It's time, Pat. goal this farming schemes the the the recognized administration being reduce program. of first Ben, and technologies a modeling maybe, are right? carbon first is by is CI to for part here, And

the the good step, time out it's tax that's the good that think the next bill have geology we to to we've our used Model and trying they're applications GREET And take a positioned, maybe the industry to friendly level.I a grower that. the to like writing. but go the policy, it's having we will and our several We the sites this more grower again, right? be are of advantage have strategy around they be associations how federal CCUS Model, working there for the do So for use of simple to And government those, Andersons, there and feel of eastern seen in really at that plants, associations company and like X to get want potential that. like GREET at first we with to for The

all so winners, journey. CI focus.And to who sudden be efficient, an a isn't going be will everyone that's ethanol the going a it's be with ethanol thing those lowest have to that So the producing to jet tomorrow, plants the our modern scores and biggest, of this overnight most is

steps You that's where be for we're got success. positioning a ourselves. time one to at And positioned to take the

Benjamin Klieve

with Do X question Very of of initiative? in And touched Pat, helpful. that carbon have of your any included around million you material follow-up on CapEx number $XXX to $XXX that type is it. out associated Got eastern plants. million the my kind sequestration you

Patrick Bowe

Yes.

here. before, mentioned chime can and we So Brian in

be spending M&A, be capital base plants... of plans and versus about project we or So that same. expenditures That XX-XX would the on said ethanol we includes some CCUS to for our

Brian Valentine

be year, I certainly and into Yes. And say, can even then think being beyond. 'XX some I it see that this can it see would I I and Ben, going -- will of

Patrick Bowe

that's the right? then part permitting to things it and And neighbors, got you to These got working don't and get you happen equipment, then overnight, installed. the of buy with point. These involve

plans place. through with something confident some that really have good in really we'll be announce process those when we able So advisers, firm to to be and we're working

Benjamin Klieve

Got No, we'll makes easy, on in initiatives. nothing updates it. Yes, and those to sense. look that quarters is forward coming all here

Turning maybe of you purposes. to I'm the the from away that impact you in the for international Can talk very the markets if the this of you last year business that part specific outlook just of in kind kind question for wondering about those -- year? -- business of isolate later geopolitical Trade one that group. for are here quarter, backed EBITDA of reentering and you the of magnitude the can contributions kind that

William Krueger

Yes, I'll EBITDA focus year-on-year sure that making liquidity The somewhere markets $XX to take our one. U.S. is in ample in there we're is change is that dollar And that $X on range. million million the that supplying.

comes And to opportunities. until we liquidity before company of of feel some best back like it's the in interest pursuing shareholders that the so and the wait more

on that we're willing We take. have the well an ongoing focused very business. The business is operating to today. We're being just risks

Patrick Bowe

Ben. that, to add could I maybe And

geographies, it's us in very [ well Luzon about from office been very within shift just has successful. We gone set that of ] a Romania So an have operations standpoint. right? for focus think I our origin up

challenges and go we the Red in to Sea, want of with slow. kind Just Black the Sea

we year, get we struggles know, currency had Egypt, you we so back that with control. mentioned want to some last As under

still with very So us. prudent risk for just but our especially is long-term we'd rather approach be think opportunity for to there, growth we an growth, that

Benjamin Klieve

you the first QX. a QX seasonality for shift into this from elaborate Got of can Very kind N&I of Last curious was sense. good. your a year there half kind first know kind frame of I if segment. kind expectations to for year? And that of you out here big then the Can bit of year, it. results half segment last No, on makes from lastly, that outlook

Brian Valentine

do can I Yes, Ben, that, certainly.

for now business. I think as of kind right that you is peak season said,

quarter Second really Industrial and strongest our tends the business. to quarter for Nutrient is be

probably it we maybe to would when entire look expect to so the I half And be slightly. year-over-year flat down year-over-year, at first

seeing I lower year-on-year. volumes, think we probably margins speak, a we're as little bit but higher

Operator

question And MKM. Fortune Scott our next with from ROTH comes

Scott Fortune

investments Nutrient follow but kind the or niche CapEx standpoint? looking are We've nicely food from of on Nutrient the the to out want in of continue covered, expand up the looking built And bit little pet to obviously, Renewables, Industrial side. that just you've on side. you to and Just you're that a the that kind

Patrick Bowe

Again, Yes. mentioned Coast today. Scott, business our East the That's on bolt-on we Perrine Coast, and Yes, in the geography with turf call. addressed on Reed us a we you welcome before. to for in hadn't acquisition Jersey. Thank a in East the being small Mid-Atlantic and added New we

small talked in a we're of making coming those of us. for think additions move overall real little technology geographic are in like market for you those core well things but nice can't in to We're investments to better. ingredients as sequestration bit know well M&A, and years. rate up deploy a that's environment midsized those to to some was we those right think pet if the there's industries, in at work the to equipment doing as all the plants or That's last whatever. pop We've specialty in about bankers interest things us. Again, carbon have general. been opportunities. able ethanol. I our and geography.And capital strategies within more more We'll that our we've feels be be be customers. grow really it to a and to to our mentioned, business.One I acquisitions. to tend of that's And some food speak those pipeline going within by of support don't seeing and plus us a for opportunities look as food want higher and fit plays, So I been from But bolt-on It's been wisely. I couple geography We going

that growth good a opportunity strategy. fits So within for our there's

Brian Valentine

Yes. is Brian. Scott, this

Just Pat business, place improvements past if a business pet had specifically our and allocating that ingredient space segment ACJ clarify do good Nutrient that capital, sense.And things of our maybe to segment. I we're and about ago clarify the that XX That also those further a bit. million acquisitions of done under $XX think didn't asked it, pencil have growth that now to That actually will few get in this our Trade a that a in And a mentioned, just know -- growth Industrial. over little business the make up one into and plants, year. of projects allocate, to to we lot months. you XX million Bridge years I about call capital $XX rolls that probably couple capital. food to is with automation

So just as wanted clarify to that well.

Scott Fortune

just it. of follow-up. a kind That's And helpful. Got

to sounds the long-term So in like, -- that to million of 'XX. you're of and $XXX internal potentially of Pat, there. kind investments through side committed of puts just you're M&A. achieving target seeing of bridging is M&A this coming your kind us And you get from improving the It kind environment, step expansion kind but bridge here, coming

of to targets. initiatives those mentioned a priorities lot kind [ the You ] initiatives, of just just meet but those of

Brian Valentine

by certainly XX-XX. EBITDA I And to We've Yes. certainly, on 'XX, M&A. we'll shot that at that, in. To you're chime that we talked the can take of run target about said and then be can previously $XXX rate and a we've million previously expect first Pat it end Bill achieve require -- right.

a M&A seeing a more We our in -- activity lot pipeline. of lot are

the And so those closely. to we're would is I of across our close are that to all news spread continuing evaluate core. they do good the segments say

come achieve so say larger kind of valuations I there's followed line expectations.I able the whole, activity think been little good a allocated to would we're on how would return picture right the trade, and And up framing probably renewables portion to followed fertilizers, there. by bit the so hopefully, will in by of big that

Pat, add to know, don't that want there's to one. anything I if you So

Patrick Bowe

by on sense. And And to said, just that do several We'll we've deals some. the X that were last alone. makes can't we organic that number years, passed like over achieve a need Scott, pricey. little we too No, it

I think environment. in this that maybe somewhat change will

We have we're positioned balance move so and that. sheet, to well a strong on

especially so competency integrate, ones our that capture core fit we maybe in can And synergies. that

So we're on. focused those are the areas

Scott Fortune

come well eastern additional now ag and about kind any picture Just of cycle? ethanol the but talk ag plants the cycle. we're mentioned on on the pick years. in here. very right out commodity seeing pressure solid. the ag of little the just well you kind where you positioned remain the of you've picture of obviously renewables But obviously side? last And kind of you past, is positioned the of Great. Or at remain bit growing up your the But look and kind side cycle couple we as still of next one but of here, off, income you I big we've seen kind overall [indiscernible], -- are farmers a prices in know

Patrick Bowe

Bill start just and in chime I'll here. can then

of row big had the of like war peak couple a commodity Ukraine prices We've really start when a in crop U.S. in good South conditions We've in here spiked. said off of we're response the had production You the America. a years the

a move having normal this some pricing. after is peak of kind cycle So

have of here like it's picked recently.I a initially, thing business we hit domestically that you think a It attractive. to think ethanol values good kind we've for come as here, industries the the of our all across a corn our prices on start bottom is down. feed bit quite feels up I pressure demand little

and -- that that segment. just slowest Bill really looks it ethanol, year. the is are strong And be talked to as So earlier, exports really it's about this really

positive So that. pretty we're about

solid they a not as big like normal. very you crash So don't market a financially. feels general, And the had while the spike. they years of X is income this growers, mentioned, a have to of still are peak in kind ago, return It

a in we're ag good So position a of in U.S. general. in kind

William Krueger

and ag ag thing demand. cycle the only to I lot Yes. to going would is market's to add supply the be The tied is that more global a

corn X last very to Wheat's the little still the over been that's tighter, carryouts. and think work. or that going I able we've X But that And do a so we how cycles, to have bean for that XX the XX to here the is months. next landing farm I from be And they soften whichever help ability participate to tied in. generate to the programs to choose will incremental over think income producers going their understand but opportunity strong to one

Operator

your I'd back Mike closing session. Thank question-and-answer you. for This remarks. over the turn like to to conference concludes Hoelter

Michael Hoelter

Rocco. want this thank joining all us morning. Thanks, to for you We

is results. at XX our Our next earnings conference quarter we scheduled will XXXX Time second Eastern X, for review August when a.m. Wednesday, call

you speaking to look interest your in The forward for soon. thank Andersons, we always, again As with and you

Operator

This concludes for you sir. thank call. all attending conference you, today's today's presentation. We Thank

may and now a wonderful day. have your lines, You disconnect

The Andersons, Inc. (ANDE) 8 May 242024 Q1 Earnings call transcript