Agricultural and food processing company Archer Daniels Midland (ADM 2.15%) released a brief statement today confirming the potential sale of its cocoa business.
Spokesperson Jackie Anderson issued the following statement:
Consistent with our commitment to create shareholder value, we regularly evaluate strategic options and maintain ongoing dialogue with other agribusiness companies to explore opportunities. We are currently engaged in discussions about the potential sale of our cocoa business. These discussions are ongoing, and there can be no assurance that they will result in the signing of a transaction or definitive agreement. We will communicate further if appropriate.
According to the company's Q1 SEC report, "Additional cocoa pressing capacity coming on line, lower cocoa powder selling prices, and customer inventory reductions led to weak cocoa press margins." Its cocoa operations pulled in $833 million in Q1 sales, equivalent to 3.8% of total revenue.
On its website, the company notes that "ADM is one of the world's largest processers and suppliers of cocoa and chocolate products with a selection of ingredients as broad and as varied as the customers we serve."
