CHS: Reports Fiscal Year 2024 Net Income of 1.1 Billion

St. Paul / MN. (chs) CHS Inc., the United States’ leading agribusiness cooperative, reported net income of USD 1.1 billion for the fiscal year ended August 31, 2024, compared to USD 1.9 billion for fiscal year 2023. Key highlights for fiscal year 2024 financial results include:

• Consolidated revenues of USD 39.3 billion for fiscal year 2024 compared to USD 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.

Jay Debertin, president and CEO: «Our earnings for fiscal year 2024 were solid, thanks to the support of our owners and customers around the world. CHS intends to return USD 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.»

Debertin continues: «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. 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

Energy: Pretax earnings of USD 429.1 million in fiscal year 2024 represent a USD 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

Agriculture: Pretax earnings of USD 342.7 million represent a USD 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 USD 151.2 million represent a USD 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.

Corporate and Other: Pretax earnings of USD 174.8 million represent a USD 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.