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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER STAPLES SECTOR
Archer-Daniels (ADM US), the US agri giant was in the news yesterday after suspending its CFO and launching an investigation into accounting practices. Euro bond is worst performer in EuroIG index.
- CFO Vikram Luthar has been placed on administrative leave “pending an ongoing investigation being conducted by outside counsel” relating to the nutrition segment (and intersegment transactions). Mgmt lowered FY23 earnings guidance (USD6.90 of adjusted EPS, previously 7.00, consensus: 7.11) and withdrew specific guidance on the nutrition segment (previously c.8% of group revenues).
- The equity fell 24% in US trading yesterday and mgmt has delayed the release of earnings which were due on 26-Jan. Consider the only areas in scope for investigation appear to account for <10% of ADM’s revenues but an SEC investigation cannot be ruled out right now.
- ADM’s only EUR traded bond (ADM 1 09/12/2025 Corp) is trading c.25bps wider this morning and at a premium to both Mondelez and Kellogg which are rated below ADM’s instrument (A2/A/A vs. BBB-region for peers) – see graphic. The market appears to be implying a downgrade.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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