Business Analysis of Archer Daniels Midland

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Archer Daniels Midland

ARCHER DANIELS MIDLAND

Business Overview

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products. Its Agricultural Services segment offers agricultural commodities, including oilseeds, corn, wheat, milo, oats, rice, and barley. This segment also provides structured trade finance; and processes wheat into wheat flour. The company's Corn Processing segment provides sweeteners, starch, syrup, glucose, and dextrose; bio products; alcohol, amino acids, and other food and animal feed ingredients; and ethyl alcohol. This segment also offers corn gluten feed and meal, and distillers' grains; vegetable oil and protein meal; formula feeds, and animal health and nutrition products; citric acids and glycols; glucose and native starch; and contract and private label pet treats and foods, and specialty ingredients. Its Oilseeds Processing segment processes soybeans and soft seeds into vegetable oils and protein meals. This segment offers ingredients for the food, feed, energy, and industrial products industries; crude vegetable and salad oils; margarine, shortening, and other food products; partially refined oils; oilseed protein meals; peanuts, tree nuts, and peanut-derived ingredients; cottonseed flour for the pharmaceutical industry; cotton cellulose pulp for the chemical, paper, and filter markets; and agricultural commodity raw materials. The company's Wild Flavors and Specialty Ingredients segment provides natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients; edible beans; soy proteins, oils, and gluten-free ingredients; natural extracts and compounds; and gluten-free and high-protein pastas. The company also engages in the futures commission and insurance activities. Archer-Daniels-Midland Company was founded in 1898 and is headquartered in Chicago, Illinois.

Archer Daniels Midland

Archer Daniels Midland


R&P Rank: 42
Sector: Consumer Goods
Industry:Food Products
H.Q Location:Illinois
Website: www.adm.com
Company Address:
4666 FARIES PKWY, DECATUR IL 62526
Ph:217-424-5200

Business Analysis of Archer Daniels Midland

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Archer Daniels Midland compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Archer Daniels Midland to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Archer Daniels Midland with an interactive chart.

  1. Revenue Growth: Archer Daniels Midland reported a revenue growth of -7.9% year-on-year during 2016. Food Products Industry grew at -5.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Archer Daniels Midland spent 94.1% of its total revenues on COGS. Food Products industry average (COGS share of revenue) in the same period was 79.3%
  3. R&D share of Revenues: Archer Daniels Midland R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Archer Daniels Midland spent 3.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Food Products industry average SG&A spending in the same period was 11.6%
  5. Inventory share of Revenues: As a percentage of revenue, Archer Daniels Midland spent 14.2% of its total revenues on Inventories. Food Products industry average Inventory spending in the same period was 10.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Archer Daniels Midland invested 14.1% of its total revenues on Accounts Payable (A/P) Food Products industry average Accounts Payable investment in the same period was 12.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Archer Daniels Midland invested 3.1% of its total revenues on Accounts Receivable (A/R). Food Products industry average Accounts Receivable investment in the same period was 7.5%
  8. PP&E share of Revenues: As a percentage of revenue, Archer Daniels Midland invested 15.7% of its total revenues on Property, Plants, and Equipments (PP&E). Food Products industry average PPE investment in the same period was 18.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Archer Daniels Midland invested 5.9% of its total revenues on Intangibles. Food Products industry average Intangibles investment in the same period was 29.4%
  10. Net Margins: Archer Daniels Midland Net Margins in the year 2016 were 2.1%. Food Products industry average Net Margins in the same period were 4.1%

Sector and Industry Association of Archer Daniels Midland

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Archer Daniels Midland is associated with Consumer Goods Sector and Food Products Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of Archer Daniels Midland

With $62.3 billion revenues, Archer Daniels Midland ranked number 1 of all the companies in the US Food Products industry. There were a total of 46 public companies in the US Food Products industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Food Products industry by revenues during 2016 were:

  1. Archer Daniels Midland ($62.3 billion)
  2. Bunge ($42.7 billion)
  3. Tyson Foods ($36.9 billion)
  4. Mondelez International ($25.9 billion)
  5. Leucadia National ($10.1 billion)
  6. Pilgrim's Pride ($7.9 billion)
  7. Dean Foods ($7.7 billion)
  8. Hershey ($7.4 billion)
  9. Ingredion ($5.7 billion)
  10. Herbalife ($4.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Archer Daniels Midlandand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of archer-daniels-midland

Bunge (BG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Bunge Ltd with $43 billion revenues in the year 2016 was the number 2 Food Products company. Read this report to know the top competitors of Bunge and identify growth and cost optimization opportunities of Bunge

Tyson Foods (TSN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tyson Foods Inc with $37 billion revenues in the year 2016 was the number 3 Food Products company. Read this report to know the top competitors of Tyson Foods and identify growth and cost optimization opportunities of Tyson Foods

Mondelez International (MDLZ) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Mondelez International, Inc. with $26 billion revenues in the year 2016 was the number 4 Food Products company. Read this report to know the top competitors of Mondelez International and identify growth and cost optimization opportunities of Mondelez International

Leucadia National (LUK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Leucadia National Corp with $10 billion revenues in the year 2016 was the number 5 Food Products company. Read this report to know the top competitors of Leucadia National and identify growth and cost optimization opportunities of Leucadia National

Pilgrim’s Pride (PPC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Pilgrim's Pride Corp with $8 billion revenues in the year 2016 was the number 6 Food Products company. Read this report to know the top competitors of Pilgrim's Pride and identify growth and cost optimization opportunities of Pilgrim's Pride

Dean Foods (DF) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dean Foods Co with $8 billion revenues in the year 2016 was the number 7 Food Products company. Read this report to know the top competitors of Dean Foods and identify growth and cost optimization opportunities of Dean Foods

Revenues Analysis

Archer Daniels Midland (ADM) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Archer Daniels Midland Co (ADM) from 2012 to 2016. Archer Daniels Midland generated a total of $62.3 billion revenues during 2016. Archer Daniels Midland reported a revenue growth of -7.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Archer Daniels Midland (ADM) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of Archer Daniels Midland Co (ADM) from 2002 to 2016. Archer Daniels Midland generated a total of $62.3 billion revenues during 2016. Archer Daniels Midland reported a revenue growth of -7.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Archer Daniels Midland (ADM) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Archer Daniels Midland Co (ADM) revenue growth with Food Products industry growth during the last five years from 2012 to 2016. Archer Daniels Midland reported a revenue growth of -7.9% year-over-year during 2016. The Food Products industry growth was -5.4% year-over-year during 2016. Archer Dani