CHS, Incorporated, one of the nation’s leading agribusiness cooperatives, reported a net income of $422.4 million for the fiscal year that ended on August 31.
It’s a substantial drop from their 2019 net income of $829.9 million.
Among the key reasons for the decline, poor weather conditions negatively impacted their ag segment operations during the first half of the fiscal year 2020, resulting in lower crop yields and poor grain quality following a late harvest and lower crop nutrient sales in the fall of 2019.
The company also had less advantageous market conditions in its refined fuels business, primarily because of COVID-19.
However, strong supply chain performance in their propane business helped in handling crop drying and home heating needs.
“Our focus remains on serving our owners, local cooperatives, as well as our customers around the world while keeping our employees safe and ensuring the company emerges stronger after the pandemic,” says Jay Debertin, President and CEO of CHS Inc.
“Since March, we have been focused on taking care of those who depend on us, maintaining financial strength, and planning for the future.”
(Story Courtesy of NAFB News Service)