Bunge Limited (NYSE: BG) today reported second quarter 2023 results
- Q2 GAAP diluted EPS of $4.09 vs. $1.34 in the prior year; $3.72 vs. $2.97 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences
- Agribusiness results driven by strong execution throughout the value chains
- Strong Refined and Specialty Oils performance in line with last year
- Accelerated strategy with agreement to combine with Viterra
- Increasing full-year adjusted EPS outlook to at least $11.75 per share
- Overview
Greg Heckman, Bunge’s Chief Executive Officer, commented, “We delivered strong results as we successfully navigated a highly dynamic quarter through agility and discipline, capturing opportunities while continuing to serve our customers at both ends of the value chain. Our team remained flexible, leveraging our global footprint and connectivity to optimize margins and utilization as market conditions evolved over the quarter.
“We look forward to our announced combination with Viterra, which will accelerate our strategy to bring us even closer to farmers with expanded direct origination, while also broadening our global processing and distribution network to better serve our consuming customers. We continue to execute on our strategic priorities, with a focus on driving further adoption of sustainable practices in global food, feed and fuel production including low-carbon product streams, regenerative agriculture, and end-to-end traceability across major crops. With enhanced capabilities, a world-class team and a strong balance sheet, we are well positioned to create value for all our stakeholders.”
- Financial Highlights
Three Months Ended
| Six Months Ended
| ||||||||||||
(US$ in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||
Net income attributable to Bunge | $ | 622 | $ | 206 | $ | 1,254 | $ | 894 | |||||
Net income per common share-diluted | $ | 4.09 | $ | 1.34 | $ | 8.24 | $ | 5.81 | |||||
Mark-to-market timing differences (a) | $ | (0.59 | ) | $ | 1.26 | $ | (1.43 | ) | $ | 0.87 | |||
Certain (gains) & charges (b) | $ | 0.22 | $ | 0.37 | $ | 0.17 | $ | 0.55 | |||||
Adjusted Net income per common share-diluted (c) | $ | 3.72 | $ | 2.97 | $ | 6.98 | $ | 7.23 | |||||
Core Segment EBIT (c) (d) | $ | 1,016 | $ | 408 | $ | 1,963 | $ | 1,330 | |||||
Mark-to-market timing differences (a) | (114 | ) | 233 | (295 | ) | 157 | |||||||
Certain (gains) & charges (b) | (9 | ) | 68 | (19 | ) | 80 | |||||||
Adjusted Core Segment EBIT (c) | $ | 893 | $ | 709 | $ | 1,649 | $ | 1,567 | |||||
Corporate and Other EBIT (c) | $ | (155 | ) | $ | (92 | ) | $ | (235 | ) | $ | (155 | ) | |
Certain (gains) & charges (b) | 34 | — | 34 | (29 | ) | ||||||||
Adjusted Corporate and Other EBIT (c) | $ | (121 | ) | $ | (92 | ) | $ | (201 | ) | $ | (184 | ) | |
Non-core Segment EBIT (c) (e) | $ | 51 | $ | 6 | $ | 70 | $ | 40 | |||||
Certain (gains) & charges (b) | — | — | — | — | |||||||||
Adjusted Non-core Segment EBIT (c) | $ | 51 | $ | 6 | $ | 70 | $ | 40 | |||||
Total Segment EBIT (c) | $ | 912 | $ | 322 | $ | 1,798 | $ | 1,215 | |||||
Mark-to-market timing differences (a) | (114 | ) | 233 | (295 | ) | 157 | |||||||
Certain (gains) & charges (b) | 25 | 68 | 15 | 51 | |||||||||
Adjusted Total Segment EBIT (c) | $ | 823 | $ | 623 | $ | 1,518 | $ | 1,423 | |||||
(a) | Mark-to-market timing impact of certain commodity and freight contracts, readily marketable inventories, and related hedges associated with committed future operating capacity. See note 3 in the Additional Financial information section of this release for details. | |
(b) | Certain (gains) & charges included in Total Segment EBIT. See Additional Financial Information for details. | |
(c) | Core Segment EBIT, Adjusted Core Segment EBIT, Corporate and Other EBIT, Adjusted Corporate and Other EBIT, Non-core Segment EBIT, Adjusted Non-core Segment EBIT, Total Segment EBIT, Adjusted Total Segment EBIT, and Adjusted Net income per common share-diluted are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables attached to this press release and the accompanying slide presentation posted on Bunge's website. | |
(d) | Core Segment earnings before interest and tax ("Core Segment EBIT") comprises the aggregate earnings before interest and tax (“EBIT”) of Bunge’s Agribusiness, Refined and Specialty Oils and Milling reportable segments, and excludes Bunge's Sugar & Bioenergy reportable segment and Corporate and Other activities. | |
(e) | Non-core Segment EBIT comprises Bunge’s Sugar & Bioenergy reportable segment EBIT, which reflects Bunge's share of the results of its 50/50 joint venture with BP p.l.c. |
- Second Quarter Results
Core Segments
Agribusiness
Three Months Ended | Six Months Ended | ||||||||||||
(US$ in millions, except per share data) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||||||||
Volumes (in thousand metric tons) | 18,257 | 19,490 | 36,643 | 39,560 | |||||||||
Net Sales | $ | 10,875 | $ | 12,747 | $ | 21,727 | $ | 23,978 | |||||
Gross Profit | $ | 997 | $ | 316 | $ | 1,805 | $ | 1,180 | |||||
Selling, general and administrative expense | $ | (151 | ) | $ | (119 | ) | $ | (283 | ) | $ | (240 | ) | |
Foreign exchange gains (losses) | $ | (64 | ) | $ | (93 | ) | $ | (25 | ) | $ | (84 | ) | |
EBIT attributable to noncontrolling interests | $ | 1 | $ | (13 | ) | $ | (20 | ) | $ | (17 | ) | ||
Other income (expense) - net | $ | 7 | $ | (14 | ) | $ | 18 | $ | (77 | ) | |||
Income (loss) from affiliates | $ | (5 | ) | $ | 16 | $ | (5 | ) | $ | 30 | |||
Segment EBIT | $ | 785 | $ | 93 | $ | 1,490 | $ | 792 | |||||
Mark-to-market timing differences | (102 | ) | 224 | (285 | ) | 141 | |||||||
Certain (gains) & charges | (9 | ) | 69 | (19 | ) | 80 | |||||||
Adjusted Segment EBIT | $ | 674 | $ | 386 | $ | 1,186 | $ | 1,013 | |||||
Certain (gains) & charges, Net income (loss) attributable to Bunge | $ | (8 | ) | $ | 59 | $ | (16 | ) | $ | 68 | |||
Certain (gains) & charges, Earnings per share | $ | (0.06 | ) | $ | 0.38 | $ | |||||||
