ST. PAUL, MINNESOTA, US — Continued robust global demand for commodities and market volatility led to strong earnings across all business segments for CHS Inc. in the first quarter of fiscal year 2023, ended Nov. 30, 2022.
CHS posted quarterly net income of $782.6 million compared with $452 million in the first quarter of fiscal year 2022. Revenues were $12.8 billion, which compared with $10.9 billion in the same quarter a year ago.
“The U.S. agricultural industry has benefited from ongoing strong global demand for grain and oilseed commodities,” said Jay Debertin, president and chief executive officer of CHS Inc. “Our continued strong earnings are attributable to market dynamics and supported by our investments on behalf of our owners in infrastructure, supply chain capabilities and innovative technology that drive efficiency and operational improvements. As we enter 2023, CHS remains well-positioned to maximize value for our member cooperatives, farmer-owners and customers.”
Soybean and canola processing businesses in the Ag segment benefited from strong demand for meal and oil.
Pretax earnings in that segment were $287.3 million, up $900,000 from a year earlier. CHS said it saw lower margins on its grain and oilseed commodities, driven by unfavorable mark-to-market impacts as well as less favorable pricing for agronomy products.
Volumes decreased across most of its Ag segment due to numerous factors, including drought conditions in portions of its trade territory.Earnings improved significantly in the Energy segment, up $327.4 million to a pretax total of $396.6 million. CHS attributed the increase to higher refining margins driven by strong demand in rural America and global market conditions.