ADM identifies internal control weakness, no impact on earnings
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CHICAGO – Agricultural giant ADM (NYSE: ADM) has completed an internal investigation led by its Audit Committee, which identified certain accounting practices in its Nutrition reporting segment, specifically regarding intersegment sales. Despite the findings, the company has stated on Monday that these adjustments will not affect its consolidated financial results.
The investigation, which began in January 2024, uncovered inaccuracies in the recording of intersegment sales between the Nutrition segment and other segments of the company, such as Ag Services and Oilseeds and Carbohydrate Solutions. These sales were not recorded at amounts approximating market value. However, ADM emphasized that these adjustments are not material to the overall financial statements for any period.
In response to the identified material weakness in internal control over financial reporting, ADM has developed a remediation plan aimed at enhancing the reliability of its financial statements for future reporting.
ADM Chairman and CEO Juan Luciano stated, “Our strong commitment to compliance and integrity in our financial reporting is evidenced by the diligence and breadth with which the Audit Committee has conducted its internal investigation.” He reassured stakeholders of the company’s dedication to strong internal controls and continued focus on executing its strategic goals.
The company is actively cooperating with ongoing investigations by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) regarding the matter.
In a separate press release issued today, ADM reported its financial results for the fourth quarter and full year ended December 31, 2023. The company will host a webcast to discuss these financial results and provide an update on company affairs.
This news comes as ADM continues to position itself as a leader in the human and animal nutrition industry, with a focus on innovation and sustainability. The company’s latest Annual Report on Form 10-K provides additional details on the internal investigation and the steps being taken to address the material weakness.
The information reported is based on a press release statement from ADM.
