Ardent Mills LLC, a leading flour milling company, faced continued pressure on profitability during the second quarter of fiscal 2025, as reported in a filing by Conagra Brands, Inc. with the Securities and Exchange Commission. Conagra’s equity method investment earnings from Ardent Mills totaled $48.5 million in the second quarter ending on Nov. 24, 2024, representing an 11% decrease from the $54.3 million reported in the same period the previous year. The year-to-date equity method earnings for Conagra stood at $77.6 million, marking a 14% decline from $89.8 million in the first half of fiscal 2024.
The decline in profitability was attributed to slightly lower volume trends that were prevalent throughout the industry. In the second quarter, the $48.5 million in equity method earnings was lower than the $49.3 million reported in the second quarter of fiscal 2023 and significantly higher than the $22.5 million recorded in the second quarter of fiscal 2022.
David S. Marberger, the chief financial officer and executive vice president of Conagra Brands, stated during the financial results announcement that the company was maintaining its full-year guidance for Ardent Mills, forecasting $150 million in equity earnings for the year. This figure represents a decrease from the $177.6 million reported in fiscal 2024.
Conagra Brands holds a 44% equity stake in Ardent Mills, with Cargill and CHS owning 44% and 12% of the company, respectively. This ownership structure underscores the collaborative nature of the business, with multiple stakeholders contributing to the operation and success of Ardent Mills.
Despite the challenges faced in the second quarter, Conagra Brands remains committed to supporting Ardent Mills and driving improved performance in the future. The company’s strategic investment in Ardent Mills reflects its confidence in the long-term growth potential of the flour milling industry and its commitment to delivering value to shareholders.
Looking ahead, Conagra Brands will continue to monitor market trends, consumer preferences, and industry developments to ensure that Ardent Mills remains competitive and profitable in the evolving marketplace. By leveraging its expertise, resources, and strategic partnerships, Conagra Brands is well-positioned to navigate challenges and seize opportunities for growth and expansion in the flour milling sector.
In conclusion, the financial results for Ardent Mills in the second quarter of fiscal 2025 highlight the ongoing challenges faced by the company in terms of profitability. However, with the support and guidance of Conagra Brands and other key stakeholders, Ardent Mills is well-equipped to address these challenges, drive improved performance, and capitalize on opportunities for growth and success in the dynamic flour milling industry.