CHS Reports Fiscal 2021 Net Income of $ 554.0 Million

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31% increase in net profit compared to the previous year

Strong global demand for grains and oilseeds drives results

Highest turnover for the company since fiscal 2014

ST. PAUL, Minn., November 4, 2021 / PRNewswire / – CHS Inc., the nation’s leading agri-food cooperative, today announced net income of $ 554.0 million for the year ended August 31, 2021, reflecting an increase of 31% or $ 131.5 million compared to fiscal year 2020.

The main financial drivers for fiscal 2021 include:

  • Consolidated turnover of $ 38.4 billion for fiscal year 2021 compared to $ 28.4 billion for fiscal 2020, a 35% year-over-year increase.

  • Significantly improved profits in our Ag segment compared to the previous year thanks to strong global demand for grains and oilseeds which drove up raw material prices and a full year of improved trade relations between United States and foreign business partners.

  • Equity profits from investments, in particular CF Nitrogen and Ventura Foods, were a significant source of profit in fiscal 2021.

  • As improved refining margins in our refined fuels business led to increased margins as demand shocks from the COVID-19 pandemic began to ease, the resulting margin improvements were more than offset by exceptionally high costs for renewable energy credits and less favorable prices on Canadian heavy crude. oil processed by our refineries, resulting in lower revenues.

“Our employees have once again demonstrated their commitment to providing products and services to our owners and customers around the world, resulting in a significant increase in profits in fiscal 2021 over the previous year,” said Jay debertin, President and CEO of CHS Inc. “For the year, aggregate demand for grains and oilseeds helped strengthen agriculture, as well as crop nutrients and crop protection products and services. . Based on the profits for fiscal year 2021, the company will bring in approximately $ 50 million in cash sponsorship and $ 100 million in share buybacks from member cooperatives and individual owners during the 2022 financial year. ”

Debertin added, “Our investments in innovation help strengthen our financial strength and drive efficiencies across our vast network. At the same time, we are improving the experience of our farmer-owners and customers who rely on CHS to help them meet growing global demand for agricultural products, opening up new opportunities for growth. “

Results of the business segment for fiscal year 2021
The segment results for the 2021 financial year are:

Energy
Pre-tax loss of $ 10.6 million represents a $ 235.9 million decrease compared to the previous year and reflects:

  • As refining margins improved over the year in our refined fuels business as demand shocks from the COVID-19 pandemic began to ease, improvements in margins resulted in The results were negatively affected by unusually high renewable energy credit costs and less favorable prices on Canadian heavy goods vehicles. crude processed by our refineries, resulting in lower profits.

Ag
Profit before tax of $ 298.1 million represent a $ 244.4 million increase from the previous year and reflect:

  • Favorable weather conditions for the fall harvest and spring planting seasons, a full year of improved business relations between United States and foreign business partners and favorable market conditions for our processing business in fiscal 2021 compared to the prior year contributed to increased volumes and margins in most of our Ag segment.

  • Improved profits in most of our agriculture sector were partially offset by lower margins on grains and oilseeds, including the impact of mark-to-market losses which are expected to reverse over time.

Nitrogen production
Profit before tax of $ 121.0 million represent a $ 69.2 million increase from the previous year and reflect:

food
Profit before tax of $ 67.9 million represent a $ 43.7 million increase from the previous year and reflect:

  • Favorable market conditions for edible oils and improved sales volumes for Ventura Foods, compared to the early stages of the COVID-19 pandemic in fiscal 2020, resulted in increased profits.

Businesses and others
Profit before tax of $ 38.9 million represent a $ 7.1 million increase from the previous year and reflect:

SHC inc. (www.chsinc.com) is a leading global agribusiness company owned by farmers, ranchers and cooperatives across United States. Diversified into energy, agronomy, grains and food, CHS is committed to building connections to empower agriculture, helping its farmer-owners, customers and other stakeholders grow their businesses through its operations. national and global. CHS provides energy, crop nutrients, seeds, crop protection products, grain marketing services, production and agricultural services, animal nutrition products, feed and feed ingredients, and risk management services. The company operates petroleum refineries and pipelines and manufactures, markets and distributes Cenex® refined fuels, lubricants, propane and branded renewable energy products.

This document and other publicly available documents of CHS Inc. contain, and officers and representatives of CHS may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of US Private Securities law. Litigation Reform Act of 1995. -forward-looking statements may be identified by words such as “anticipate”, “intend”, “plan”, “aim”, “seek”, “believe”, “plan”, ” estimate ”,“ ” ” ” ” ” ” ” ‘future’, ‘probable’, ‘may’, ‘should’, ‘will’, and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based solely on CHS current beliefs, expectations and assumptions regarding the future of its business, financial condition and results of operations, future plans and strategies, projections, events and trends. forecast, economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are beyond the control of the CHS. CHS actual results and financial condition may differ materially from those shown in forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. Important factors that could cause the CHS’s actual results and financial condition to differ materially from those shown in forward-looking statements are discussed or identified in documents filed by the CHS with the United States Securities and Exchange Commission, including in discussion of “Risk Factors” in Section 1A of the CHS Annual Report on Form 10-K for the completed fiscal year August 31, 2021. These factors may include: changes in commodity prices; the impact of government policies, mandates, regulations and trade agreements; the global and regional political, economic, legal and other risks of doing business on a global scale; the impact of the ongoing COVID-19 outbreak or other similar outbreaks; the impact of market acceptance of alternatives to refined petroleum products; consolidation between our suppliers and customers; non-performance of contractual counterparties; changes in federal tax laws or our tax status; the impact of compliance or non-compliance with applicable laws and regulations; the impact of any government investigation; the impact of environmental liabilities and litigation; the real or perceived risks of quality, safety or health associated with our products; the impact of seasonality; the effectiveness of our risk management strategies; business disruptions and claims; the impact of labor factors; our financing needs and our sources of financing; policies of financial institutions and other sources of capital relating to energy-related enterprises; uncertainty over abandoning LIBOR and replacing LIBOR with another benchmark rate; technological improvements that decrease demand for our agronomic and energy products; our ability to complete, integrate and benefit from acquisitions, strategic alliances, joint ventures, divestitures and other non-ordinary events in the course of business; security breaches or other disruptions to our information technology systems or assets; the impact of our environmental, social and governance practices; the depreciation of long-lived assets; and other factors affecting our business in general. All forward-looking statements made by CHS in this document are based solely on information currently available at CHS and speak only as of the date the statement is made. CHS assumes no obligation to update any forward-looking statements, written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as applicable law requires. required.

Earnings from SHC inc. *

by segment

(in thousands of $)

Years ended August 31

2021

2020

Energy

$

(10,596)

$

225,317

Ag

298,096

53,724

Nitrogen production

121,035

51 837

food

67,902

24,179

Businesses and others

38 883

31 821

Income before taxes

515,320

386 878

Tax benefit

(38,249)

(36,731)

Net revenue

553,569

423,609

Net income (loss) attributable to non-controlling interests

(383)

1 170

Net profit attributable to CHS inc.

$

553 952

$

422,439

* Profit is defined as income (loss) before income taxes

Cision

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SOURCE CHS inc.


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