CHS reports fiscal year 2024 net income of $1.1 billion

Date:11-07-2024

CHS Inc., the nation's leading agribusiness cooperative, reported net income of $1.1 billion for the fiscal year ended Aug. 31, 2024, compared to $1.9 billion for fiscal year 2023.

Key highlights for fiscal year 2024 financial results include:

• Consolidated revenues of $39.3 billion for fiscal year 2024 compared to $45.6 billion for fiscal year 2023, a change attributed to lower commodity prices.

• Financial performance remained solid across segments, although down from historically strong results, including record earnings in the prior year.

• Evolving market conditions, including less favorable refining margins, led to weaker Energy segment results compared to fiscal year 2023.

• Ag segment earnings declined from the prior year due to softening oilseed crush margins and global conditions that drove down margins for U.S. grain exports.

• Equity method investments continued to perform well, with our CF Nitrogen investment being the largest contributor.

 

″Our earnings for fiscal year 2024 were solid, thanks to the support of our owners and customers around the world. CHS intends to return $600 million in cash patronage and equity redemptions to our farmer-owners and member cooperatives in fiscal year 2025, as we continue to share profits with those that work with us to empower agriculture and help feed people around the globe,″ said Jay Debertin, president and CEO.

″We remain committed to strategically investing in strengthening our grain, agronomy and energy supply chains to provide end-to-end value and enhance market access for U.S. growers,″ said Debertin. ″As our industry navigates a challenging market environment, CHS is focused on efficiency and managing costs while still enhancing customer experience and driving growth on behalf of our owners."

Fiscal Year 2024 Business Segment Results

Ag

Pretax earnings of $342.7 million represent a $69.1 million decrease versus the prior year and reflect:

• Weaker crush margins due to an increased global supply of canola and soybean meal and oil, partially offset by operational and logistical efficiencies at CHS oilseed crush plants

• Improved margins and higher volumes for wholesale and retail agronomy products

• Compressed margins in the grain and oilseed product category due to global market conditions

Nitrogen Production

Pretax earnings of $151.2 million represent a $109.5 million decrease versus the prior year. The reduction in equity method income is due to lower global prices of urea and UAN, produced and sold by CF Nitrogen, our joint venture with CF Industries, which were partly offset by decreased natural gas costs.

Energy

Pretax earnings of $429.1 million in fiscal year 2024 represent a $646.4 million decrease versus the prior year and reflect:

• A substantial reduction in refined fuels earnings due to the negative impact of industry trends on refining margins and less favorable pricing of heavy Canadian crude oil

• Reduced costs for renewable energy credits, which partially offset the impact of unfavorable market conditions

Corporate and Other

Pretax earnings of $174.8 million represent a $84.9 million decrease versus the prior year and reflect less favorable market conditions for oil-based food products produced by the Ventura Foods joint venture.

*Earnings is defined as income (loss) before income taxes.

CHS Inc. (www.chsinc.com) 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 approximately 10,000 people worldwide. CHS provides critical crop inputs, market access and risk management services that help farmers feed the world. CHS' diversified agronomy, grains, foods and energy businesses recorded revenues of approximately $39 billion in fiscal year 2024. CHS is committed to reducing its impact on the planet, finding and developing new solutions in agriculture and energy, and investing in ways to build a better future for its owners, customers, employees and communities.