Ingredients, Flavors & Fragrances Stocks Q3 Results: Benchmarking Archer-Daniels-Midland (NYSE:ADM)

Let’s dig into the relative performance of Archer-Daniels-Midland (NYSE:ADM) and its peers as we unravel the now-completed Q3 ingredients, flavors & fragrances earnings season.

Ingredients, flavors, and fragrances companies supply essential components to food, beverage, personal care, and household product manufacturers. These firms develop proprietary formulations that enhance taste, scent, and texture, creating customer stickiness through specialized expertise and regulatory-approved ingredient portfolios. Tailwinds include growing consumer demand for natural and clean-label products, expansion in emerging markets, and innovation in plant-based and functional ingredients. However, headwinds persist from volatile raw material costs, particularly for agricultural and petrochemical inputs. Regulatory scrutiny over synthetic additives and fragrance allergens poses compliance challenges, while consolidation among major customers increases pricing pressure and negotiating leverage against suppliers.

The 5 ingredients, flavors & fragrances stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 2.5%.

Luckily, ingredients, flavors & fragrances stocks have performed well with share prices up 11.4% on average since the latest earnings results.

Archer-Daniels-Midland (NYSE:ADM)

Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE:ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications.

Archer-Daniels-Midland reported revenues of $20.37 billion, up 2.2% year on year. This print fell short of analysts’ expectations by 2%, but it was still a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ gross margin estimates.

“ADM again delivered a strong quarter in increasingly dynamic market conditions as we continued to adjust our business model to meet the evolving needs of our customers. Through targeted investments in innovation and a focus on efficiencies that align to our customers’ goals, we are strengthening critical partnerships and expanding our new profit opportunities to deliver additional shareholder value,” said Chair of the Board and CEO Juan Luciano.

Interestingly, the stock is up 7.3% since reporting and currently trades at $63.33.

Is now the time to buy Archer-Daniels-Midland? Access our full analysis of the earnings results here, it’s free.

Best Q3: Darling Ingredients (NYSE:DAR)

Turning what others consider waste into valuable resources, Darling Ingredients (NYSE:DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.

Darling Ingredients reported revenues of $1.56 billion, up 10% year on year, outperforming analysts’ expectations by 4.5%. The business had a strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

Darling Ingredients achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 28.7% since reporting. It currently trades at $40.04.

Is now the time to buy Darling Ingredients? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Ingredion (NYSE:INGR)

Known for its ability to turn ordinary corn into thousands of different food ingredients, Ingredion (NYSE:INGR) transforms grains, fruits, vegetables and other plant-based materials into specialty starches, sweeteners and other ingredients for food, beverage and industrial markets.

Ingredion reported revenues of $1.82 billion, down 2.9% year on year, falling short of analysts’ expectations by 4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ revenue estimates.

The stock is flat since the results and currently trades at $113.17.

Read our full analysis of Ingredion’s results here.

Bunge Global (NYSE:BG)

With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE:BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients.

Bunge Global reported revenues of $22.16 billion, up 71.6% year on year. This print came in 13.3% below analysts' expectations. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ revenue estimates.

Bunge Global achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 8.5% since reporting and currently trades at $101.86.

Read our full, actionable report on Bunge Global here, it’s free.

International Flavors & Fragrances (NYSE:IFF)

Responsible for the scents in your favorite perfumes and the flavors in your daily snacks, International Flavors & Fragrances (NYSE:IFF) creates and manufactures ingredients for food, beverages, personal care products, and pharmaceuticals used in countless consumer goods.

International Flavors & Fragrances reported revenues of $2.69 billion, down 7.9% year on year. This number beat analysts’ expectations by 2.1%. It was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

International Flavors & Fragrances had the slowest revenue growth among its peers. The stock is up 13.2% since reporting and currently trades at $69.61.

Read our full, actionable report on International Flavors & Fragrances here, it’s free.

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