CHS Reports Third Quarter Fiscal Year 2024 Results

297.3 PLN $1 million in third-quarter net income fuels strong earnings through nine months

ST. PAUL, Minnesota., July 10, 2024 /PRNewswire/ — CHS Inc., a leading national agribusiness cooperative, today announced its third-quarter results May 31, 2024The company reported quarterly net income of $297.3 million and revenues $9.6 billion compared to net income 547.5 million dollars and revenues $12.0 billion in the third quarter of the 2023 fiscal year. For the first nine months of the 2024 fiscal year, the company recorded a net income of $990.5 million and revenues $30.1 billion compared to record net income $1.6 billion and record revenues $36.1 billion in the first nine months of fiscal year 2023.

Highlights of the third quarter of fiscal year 2024:

• Financial results were solid across all of our segments, although earnings in fiscal 2023 were lower than historically strong results.
• Revenues declined due to lower commodity prices.
• Weaker demand for grains and oilseeds led to a decline in profits in our agricultural segment compared to the previous year.
• More challenging market conditions, including less favorable refining margins, led to lower earnings in our Energy segment compared to the prior year.
• Our equity investments, led by our investment in CF Nitrogen, have performed well in changing market conditions.

“In the first nine months of our fiscal year, we delivered solid financial results, including the third-highest net income in our history,” he said. Jay DebertinPresident and CEO of CHS Inc. “While we continue to feel the negative impact of weakening margins on agricultural and energy commodities, CHS is well-positioned to navigate this commodity cycle downturn with a strong focus on cost control and efficiency. We are doing well, and our investments in our supply chain allow us to connect farmers and member cooperatives with the materials and services they need to help feed the world’s growing population.”

Energy
Income before tax $97.9 million for the third quarter of fiscal year 2024 are $101.1 million decrease compared to the same period of the previous year and reflects:

• Lower refining margins due to higher industry capacity utilisation rates, bringing additional refined fuel supplies to market, partially offset by lower renewable fuel credit costs
• Higher Costs of Canadian Heavy Crude Oil

Ag
Income before tax $108.5 million represent $125.0 million decrease compared to the same period of the previous year and reflects:

• Lower crushing margins in oilseed processing due to weaker demand for meal and oil
• Decrease in margins on wholesale and retail agrotechnical products, partially compensated by higher sales volumes
• Compressed margins in our grain and oilseeds category due to lower demand for U.S. commodities as trade flows shift amid a competitive global grain market

Nitrogen production
Income before tax $52.4 million represent $3.9 million decrease compared to the same period in the previous year, which is attributed to the decrease in market prices of urea and UAN.

Corporate and other
Income before tax $51.1 million represent $18.2 million decrease compared to the same period of the previous year, primarily reflecting lower capital income at Ventura Foods, which experienced less favorable market conditions for oil-based food products.

CHS Inc. (www.chsinc.com) creates connections to strengthen agriculture. As a leading global agribusiness and the largest farmer-owned cooperative in the world United StatesCHS 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, food and energy businesses have recorded revenues of $45.6 billion in fiscal year 2023. We support sustainability through our commitment to being stewards of the environment, building economic profitability and enhancing the well-being of communities and employees.

This document and other publicly available CHS Inc. documents contain, and CHS officers, directors and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based solely on CHS’s current beliefs, expectations and assumptions regarding its future business, financial condition and results of operations, future plans and strategies, forecasts, anticipated events and trends, the economy and other future conditions. Because forward-looking statements are forward-looking, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, many of which are beyond CHS’s control. CHS’s actual results and financial condition could differ materially from those indicated in the forward-looking statements. Accordingly, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause CHS’s actual results and financial condition to differ materially from those indicated in the forward-looking statements are discussed or identified in CHS’s filings with the U.S. Securities and Exchange Commission, including the discussion “Risk Factors” in Item 1A of CHS’s Annual Report on Form 10-K for the fiscal year ended August 31, 2023These factors may include changes in commodity prices; the impact of government policies, orders, regulations and trade agreements; global and regional political, economic, legal and other risks associated with doing business around the world; the ongoing war between Russia AND Ukraine;escalation of the conflict in Near East; the impact of inflation; the impact of epidemics, pandemics, disease outbreaks and other adverse public health events, including COVID-19; the impact of market acceptance of alternatives to refined petroleum products; consolidation among our suppliers and customers; defaults by counterparties; changes in federal tax laws or our tax status; the impact of compliance with or non-compliance with applicable laws and regulations; the impact of any governmental investigations; the impact of environmental liabilities and litigation; actual or perceived quality, safety or health risks associated with our products; the impact of seasonality; the effectiveness of our risk management strategies; business interruptions, losses due to accidents and supply chain issues; the impact of labor factors; our financing needs and sources of financing; the policies of financial institutions and other sources of capital relating to energy-related businesses; technological improvements that reduce demand for our agronomic and energy products; our ability to complete, integrate and benefit from acquisitions, strategic alliances, joint ventures, divestitures and other unusual events in the course of our business; security breaches or other disruptions to our information technology systems or resources; the impact of our environmental, social and governance practices, including any failure or delay in implementing our strategies or expectations related to climate change or other environmental matters; impairments of long-lived assets; the impact of bank failures; and other factors affecting our business generally. Any forward-looking statements made by CHS herein are based solely on information currently available to CHS and speak only as of the date the statement is made. CHS undertakes no obligation to update any forward-looking statements, written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE CHS Inc.