CHS Reports Second Quarter Fiscal Year 2024 Earnings

CHS Inc., the nation’s leading agribusiness cooperative, today released results for its second quarter ended Feb. 29, 2024. The company reported quarterly net income of $170.3 million and revenues of $9.1 billion compared to net income of $292.3 million and revenues of $11.3 billion in the second quarter of fiscal year 2023. For the first six months of fiscal year 2024, the company reported net income of $693.2 million and revenues of $20.5 billion compared to record net income of $1.1 billion and record revenues of $24.1 billion in the first half of fiscal year 2023.

Second quarter fiscal year 2024 highlights:

• Performance was solid across our segments, although earnings were down from the record second quarter of fiscal year 2023.
• In our Ag segment, earnings rose as agronomy markets were stronger compared to the prior year and grain and oilseed margins were stable.
• In our Energy segment, margins declined from the highs in the prior year due to changing market conditions including the impact of a historically warm winter.
• Equity method investments continued to perform well, led by our CF Nitrogen investment.

“The first six months of our fiscal year have delivered overall good financial results,” said Jay Debertin, president and CEO of CHS Inc. “Our supply chain investments and well-diversified portfolio, empowered by our people and technology, are helping us perform well as we connect farmers and local cooperatives with the inputs and services they need to help feed the world.”

Energy
Pretax earnings of $51.6 million for the second quarter of fiscal year 2024 represent a $213.2 million decrease versus the prior year period and reflect:

• Decreased refining margins due to lower market prices and less favorable pricing on heavy Canadian crude oil, partially offset by a lower cost for renewable fuel credits
• Lower margins for propane due to global market conditions
• Reduced demand for propane and refined fuels, primarily driven by warm weather conditions across much of our trade territory

Ag
Pretax earnings of $56.9 million represent a $138.4 million increase versus the prior year period and reflect:

• Improved margins for our wholesale and retail agronomy products due to improved market conditions
• Increased margins for our grain and oilseed product category due to the timing impact of market adjustments
• Higher grain and oilseed volumes due to improved efficiencies and a more balanced global supply and demand environment

Nitrogen Production
Pretax earnings of $37.0 million represent a $44.7 million decrease versus the prior year period and reflect lower equity income from CF Nitrogen attributed to decreased market prices of urea and UAN.

Corporate and Other
Pretax earnings of $40.2 million represent a $7.8 million decrease versus the prior year period, primarily reflecting lower equity income from Ventura Foods, which experienced less favorable market conditions for edible oils.

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 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, foods and energy businesses recorded revenues of $45.6 billion in fiscal year 2023. We advance sustainability through our commitment to being stewards of the environment, building economic viability and strengthening community and employee well-being.