Bunge Global SA (NYSE: BG) today reported second quarter 2024
results.
- Q2 GAAP diluted EPS of $0.48 vs. $4.09 in the prior year;
$1.73 vs. $3.72 on an adjusted basis excluding certain
gains/charges and mark-to-market timing differences
- Lower Agribusiness results reflect a more balanced global
supply environment
- Refined and Specialty Oils performed well, but results were
down from a strong prior year
- Excellent progress on Viterra integration planning and other
strategic priorities including the announced sale of our interest
in the sugar & bioenergy joint venture
- Updating adjusted full-year EPS outlook to approximately
$9.25
Greg Heckman, Bunge’s Chief Executive Officer, commented, "Our
team delivered solid results for the second quarter while also
moving forward on a range of strategic priorities, including
announcing the sale of our interest in the BP Bunge Bioenergia
joint venture. The integration planning process for Viterra is
progressing well and the team is excited about the opportunities
that the combination will create for our employees, customers and
other important stakeholders.
“Current market conditions have improved in some regions, but we
continue to have limited visibility into the latter part of the
year. The drivers of long-term demand remain strong and with our
global footprint and operating flexibility, we are well-positioned
to connect farmers to consumers to deliver essential food, feed and
fuel to the world.”
Three Months Ended
June 30,
Six Months Ended
June 30,
(US$ in millions, except per share
data)
2024
2023
2024
2023
Net income attributable to
Bunge
$
70
$
622
$
314
$
1,254
Net income per share-diluted
(6)
$
0.48
$
4.09
$
2.17
$
8.24
Mark-to-market timing differences (a)
$
0.82
$
(0.59
)
$
1.75
$
(1.43
)
Certain (gains) & charges (b)
$
0.43
$
0.22
$
0.85
$
0.17
Adjusted Net income per share-diluted
(c)(6)
$
1.73
$
3.72
$
4.77
$
6.98
Core Segment EBIT (c) (d)
$
361
$
1,016
$
898
$
1,963
Mark-to-market timing differences (a)
158
(114
)
340
(295
)
Certain (gains) & charges (b)
—
(9
)
—
(19
)
Adjusted Core Segment EBIT (c)
$
519
$
893
$
1,238
$
1,649
Corporate and Other EBIT (c)
$
(155
)
$
(155
)
$
(283
)
$
(235
)
Certain (gains) & charges (b)
62
34
123
34
Adjusted Corporate and Other EBIT
(c)
$
(93
)
$
(121
)
$
(160
)
$
(201
)
Non-core Segment EBIT (c) (e)
$
(21
)
$
51
$
3
$
70
Certain (gains) & charges (b)
—
—
—
—
Adjusted Non-core Segment EBIT
(c)
$
(21
)
$
51
$
3
$
70
Total Segment EBIT (c)
$
185
$
912
$
618
$
1,798
Mark-to-market timing differences (a)
158
(114
)
340
(295
)
Certain (gains) & charges (b)
62
25
123
15
Adjusted Total Segment EBIT (c)
$
405
$
823
$
1,081
$
1,518
(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 and Net income attributable to Bunge. 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 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. On June 19, 2024, Bunge entered into a definitive share
purchase agreement to sell its 50% ownership share in BP Bunge
Bioenergia. The transaction is expected to close in late 2024,
subject to customary closing conditions.
Core Segments
Agribusiness
Three Months Ended
Six Months Ended
(US$ in millions, except per share
data)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Volumes (in thousand metric
tons)
20,579
18,257
40,771
36,643
Net Sales
$
9,657
$
10,875
$
19,397
$
21,727
Gross Profit
$
289
$
997
$
743
$
1,805
Selling, general and administrative
expense
$
(150
)
$
(151
)
$
(305
)
$
(283
)
Foreign exchange (losses) gains –
net
$
(39
)
$
(64
)
$
(101
)
$
(25
)
EBIT attributable to noncontrolling
interests
$
7
$
1
$
10
$
(20
)
Other income (expense) - net
$
56
$
7
$
109
$
18
Income (loss) from affiliates
$
(25
)
$
(5
)
$
(40
)
$
(5
)
Segment EBIT
$
138
$
785
$
416
$
1,490
Mark-to-market timing differences
160
(102
)
369
(285
)
Certain (gains) & charges
—
(9
)
—
(19
)
Adjusted Segment EBIT
$
298
$
674
$
785
$
1,186
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
(8
)
$
—
$
(16
)
Certain (gains) & charges, Earnings
per share
$
—
$
(0.06
)
$
—
$
(0.11
)
Processing (2)
Three Months Ended
Six Months Ended
(US$ in millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Processing EBIT
$
122
$
586
$
302
$
1,223
Mark-to-market timing differences
143
(56
)
374
(279
)
Certain (gains) & charges
—
(4
)
—
(14
)
Adjusted Processing EBIT
$
265
$
526
$
676
$
930
Higher results in Europe soy and softseed crush were more than
offset by lower results in North and South America and Asia.
Merchandising (2)
Three Months Ended
Six Months Ended
(US$ in millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Merchandising EBIT
$
16
$
199
$
114
$
267
Mark-to-market timing differences
17
(46
)
(5
)
(6
)
Certain (gains) & charges
—
(5
)
—
(5
)
Adjusted Merchandising EBIT
$
33
$
148
$
109
$
256
Lower results were primarily driven by global grains where
higher volumes were more than offset by lower margins.
Refined & Specialty Oils
Three Months Ended
Six Months Ended
(US$ in millions, except per share
data)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Volumes (in thousand metric
tons)
2,300
2,212
4,495
4,358
Net Sales
$
3,121
$
3,601
$
6,361
$
7,489
Gross Profit
$
315
$
333
$
674
$
675
Selling, general and administrative
expense
$
(100
)
$
(98
)
$
(200
)
$
(193
)
Foreign exchange (losses) gains –
net
$
(2
)
$
5
$
(13
)
$
10
EBIT attributable to noncontrolling
interests
$
(12
)
$
(7
)
$
(18
)
$
(11
)
Other income (expense) - net
$
(16
)
$
(16
)
$
(32
)
$
(31
)
Segment EBIT
$
185
$
217
$
411
$
450
Mark-to-market timing differences
8
(10
)
(14
)
(9
)
Certain (gains) & charges
—
—
—
—
Adjusted Segment EBIT
$
193
$
207
$
397
$
441
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
$
—
$
—
Refined & Specialty Oils Summary
Higher results in Asia were more than offset by lower results in
North and South America and Europe.
Milling
Three Months Ended
Six Months Ended
(US$ in millions, except per share
data)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Volumes (in thousand metric
tons)
971
844
1,845
1,665
Net Sales
$
401
$
490
$
782
$
1,005
Gross Profit
$
66
$
40
$
126
$
71
Selling, general and administrative
expense
$
(24
)
$
(24
)
$
(49
)
$
(45
)
Foreign exchange (losses) gains –
net
$
(2
)
$
(1
)
$
(2
)
$
(1
)
Other income (expense) - net
$
(1
)
$
(2
)
$
(3
)
$
(3
)
Segment EBIT
$
38
$
14
$
71
$
23
Mark-to-market timing differences
(10
)
(2
)
(15
)
(1
)
Certain (gains) & charges
—
—
—
—
Adjusted Segment EBIT
$
28
$
12
$
56
$
22
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
$
—
$
—
Milling Summary
Higher results were primarily driven by South America reflecting
higher volumes and margins. Results in the U.S. were in line with
the prior year.
Corporate and Other
Three Months Ended
Six Months Ended
(US$ in millions, except per share
data)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Gross Profit
$
(7
)
$
(7
)
$
(5
)
$
(7
)
Selling, general and administrative
expense
$
(174
)
$
(147
)
$
(333
)
$
(252
)
Foreign exchange (losses) gains –
net
$
6
$
(6
)
$
1
$
(1
)
Other income (expense) - net
$
18
$
21
$
51
$
41
Income (loss) from affiliates
$
1
$
(17
)
$
1
$
(17
)
Segment EBIT
$
(155
)
$
(155
)
$
(283
)
$
(235
)
Certain (gains) & charges
62
34
123
34
Adjusted Segment EBIT
$
(93
)
$
(121
)
$
(160
)
$
(201
)
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
62
$
42
$
123
$
42
Certain (gains) & charges, Earnings
per share
$
0.43
$
0.28
$
0.85
$
0.28
Corporate
Three Months Ended
Six Months Ended
(US$ in millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Corporate EBIT
$
(168
)
$
(139
)
$
(308
)
$
(226
)
Certain (gains) & charges
62
18
123
18
Adjusted Corporate EBIT
$
(106
)
$
(121
)
$
(185
)
$
(208
)
Other
Three Months Ended
Six Months Ended
(US$ in millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Other EBIT
$
13
$
(16
)
$
25
$
(9
)
Certain (gains) & charges
—
16
—
16
Adjusted Other EBIT
$
13
$
—
$
25
$
7
Corporate and Other Summary
The decrease in Corporate expenses reflected lower
performance-based compensation. Higher Other results were largely
related to our captive insurance program.
Non-core Segments
Sugar & Bioenergy
Three Months Ended
Six Months Ended
(US$ in millions, except per share
data)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Net Sales
$
49
$
72
$
92
$
136
Gross Profit
$
1
$
2
$
2
$
2
Income (loss) from affiliates
$
(21
)
$
47
$
2
$
66
Segment EBIT
$
(21
)
$
51
$
3
$
70
Certain (gains) & charges
—
—
—
—
Adjusted Segment EBIT
$
(21
)
$
51
$
3
$
70
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
$
—
$
—
Sugar & Bioenergy Summary
Results were down driven by lower Brazilian ethanol prices more
than offsetting higher sugar prices. Results were also negatively
impacted by approximately $15 million in foreign exchange
translation losses on U.S. dollar denominated debt. Results in the
prior year included a $39 million benefit from the reversal of a
tax valuation allowance.
Cash Flow
Six Months Ended
Jun 30, 2024
Jun 30, 2023
Cash provided by (used for) operating
activities
$
(480
)
$
472
Certain reconciling items to Adjusted
funds from operations (4)
1,375
888
Adjusted funds from operations (4)
$
895
$
1,360
Cash used for operations in the six months ended June 30, 2024
was $480 million compared to cash provided of $472 million in the
same period last year. The reduction of cash from operations was
primarily driven by lower reported net income and net changes in
working capital. Adjusted funds from operations (FFO) was $895
million compared to $1,360 million in the prior year.(4)
Income Taxes
For the six months ended June 30, 2024, income tax expense was
$147 million compared to $381 million in the prior year. The
decrease was primarily due to lower pre-tax income.
Taking into account first half results and the current margin
environment and forward curves, we now expect full-year 2024
adjusted EPS of approximately $9.25.
In Agribusiness, full-year results are forecasted to be in line
with our previous outlook, reflecting higher results in Processing,
largely offset by lower results in Merchandising. Results are
expected to be down compared to last year.
In Refined and Specialty Oils, full-year results are expected to
be up from our previous outlook due to the better than expected
second quarter, but down compared to last year’s record
performance.
In Milling, full-year results are expected to be similar to our
previous outlook and up from last year.
In Corporate and Other, full-year results are expected to be
similar to our previous outlook.
In Non-Core, full-year results in the sugar & bioenergy
joint venture are expected to be down slightly from our previous
outlook and significantly down from last year.
Additionally, the Company expects the following for 2024: an
adjusted annual effective tax rate of 22% to 25%; net interest
expense in the range of $280 to $310 million; capital expenditures
in the range of $1.2 to $1.4 billion; and depreciation and
amortization of approximately $450 million.
- Conference Call and Webcast Details
Bunge Global SA’s management will host a conference call at 8:00
a.m. Eastern (7:00 a.m. Central) on Wednesday, July 31, 2024 to
discuss the Company’s results.
Additionally, a slide presentation to accompany the discussion
of results will be posted on www.bunge.com.
To access the webcast, go to “Events & Presentations” under
“News & Events” in the “Investor Center” section of the
company’s website. Select “Q2 2024 Bunge Global SA Conference Call”
and follow the prompts. Please go to the website at least 15
minutes prior to the call to register and download any necessary
audio software.
To listen to the call, please dial 1-844-735-3666. If you are
located outside the United States or Canada, dial 1-412-317-5706.
Please dial in five to 10 minutes before the scheduled start time.
The call will also be webcast live at www.bunge.com.
A replay of the call will be available later in the day on July
31, 2024, continuing through August 30, 2024. To listen to it,
please dial 1-877-344-7529 in the United States, 1-855-669-9658 in
Canada, or 1-412-317-0088 in other locations. When prompted, enter
confirmation code 5682152.
At Bunge (NYSE: BG), our purpose is to connect farmers to
consumers to deliver essential food, feed and fuel to the world.
With more than two centuries of experience, unmatched global scale
and deeply rooted relationships, we work to strengthen global food
security, increase sustainability where we operate, and help
communities prosper. As the world’s leader in oilseed processing
and a leading producer and supplier of specialty plant-based oils
and fats, we value our partnerships with farmers to bring quality
products from where they’re grown to where they’re consumed. At the
same time, we collaborate with our customers to develop tailored
and innovative solutions to meet evolving dietary needs and trends
in every part of the world. Our Company has its registered office
in Geneva, Switzerland and its corporate headquarters in St. Louis,
Missouri. We have approximately 23,000 dedicated employees working
across approximately 300 facilities located in more than 40
countries.
We routinely post important information for investors on our
website, www.bunge.com, in the "Investors" section. We may use this
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD. Accordingly, investors should monitor the Investors section of
our website, in addition to following our press releases, U.S.
Securities and Exchange Commission ("SEC") filings, public
conference calls, presentations and webcasts. The information
contained on, or that may be accessed through, our website is not
incorporated by reference into, and is not a part of, this
document.
- Cautionary Statement Concerning Forward Looking
Statements
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward looking statements to encourage companies
to provide prospective information to investors. This press release
includes forward looking statements that reflect our current
expectations and projections about our future results, performance,
prospects and opportunities. Forward looking statements include all
statements that are not historical in nature. We have tried to
identify these forward looking statements by using words including
"may," "will," "should," "could," "expect," "anticipate,"
"believe," "plan," "intend," "estimate," "continue" and similar
expressions. These forward looking statements are subject to a
number of risks, uncertainties, assumptions and other factors that
could cause our actual results, performance, prospects or
opportunities to differ materially from those expressed in, or
implied by, these forward looking statements. The following
factors, among others, could cause actual results to differ from
these forward looking statements:
- the impact on our employees, operations, and facilities from
the war in Ukraine and the resulting economic and other sanctions
imposed on Russia, including the impact on us resulting from the
continuation and/or escalation of the war and sanctions against
Russia;
- the effect of weather conditions and the impact of crop and
animal disease on our business;
- the impact of global and regional economic, agricultural,
financial and commodities market, political, social and health
conditions;
- changes in government policies and laws affecting our business,
including agricultural and trade policies, financial markets
regulation and environmental, tax and biofuels regulation;
- the impact of seasonality;
- the impact of government policies and regulations;
- the outcome of pending regulatory and legal proceedings;
- our ability to complete, integrate and benefit from
acquisitions, divestitures, joint ventures and strategic alliances,
including without limitation Bunge’s pending business combination
with Viterra Limited (“Viterra”);
- the impact of industry conditions, including fluctuations in
supply, demand and prices for agricultural commodities and other
raw materials and products that we sell and use in our business,
fluctuations in energy and freight costs and competitive
developments in our industries;
- the effectiveness of our capital allocation plans, funding
needs and financing sources;
- the effectiveness of our risk management strategies;
- operational risks, including industrial accidents, natural
disasters, pandemics or epidemics and cybersecurity incidents;
- changes in foreign exchange policy or rates;
- the impact of our dependence on third parties;
- our ability to attract and retain executive management and key
personnel; and
- other factors affecting our business generally.
The forward looking statements included in this release are made
only as of the date of this release, and except as otherwise
required by federal securities law, we do not have any obligation
to publicly update or revise any forward looking statements to
reflect subsequent events or circumstances.
You should refer to "Item 1A. Risk Factors" in our Annual Report
on Form 10-K for the year ended December 31, 2023 filed with the
SEC on February 22, 2024.
- Additional Financial Information
Certain gains and (charges), quarter-to-date
The following table provides a summary of certain gains and
(charges) that may be of interest to investors, including a
description of these items and their effect on Net income (loss)
attributable to Bunge, Earnings per share diluted and Segment EBIT
for the three month periods ended June 30, 2024 and 2023.
(US$ in millions, except per share
data)
Net Income (Loss)
Attributable to Bunge
Earnings Per Share
Diluted (6)
Segment EBIT
Three Months Ended June 30,
2024
2023
2024
2023
2024
2023
Core Segments:
$
—
$
8
$
—
$
0.06
$
—
$
9
Agribusiness
$
—
$
8
$
—
$
0.06
$
—
$
9
Ukraine-Russia War
—
8
—
0.06
—
9
Refined and Specialty Oils
$
—
$
—
$
—
$
—
$
—
$
—
Milling
$
—
$
—
$
—
$
—
$
—
$
—
Corporate and Other:
$
(62
)
$
(42
)
$
(0.43
)
$
(0.28
)
$
(62
)
$
(34
)
Acquisition and integration costs
(62
)
(26
)
(0.43
)
(0.17
)
(62
)
(18
)
Impairment of equity method investment
—
(16
)
—
(0.11
)
—
(16
)
Non-core Segment:
$
—
$
—
$
—
$
—
$
—
$
—
Sugar & Bioenergy
$
—
$
—
$
—
$
—
$
—
$
—
Total
$
(62
)
$
(34
)
$
(0.43
)
$
(0.22
)
$
(62
)
$
(25
)
See Definition and Reconciliation of
Non-GAAP Measures.
Core Segments
Agribusiness
EBIT for the three months ended June 30, 2023 included a
mark-to-market gain of $9 million, in Cost of goods sold, related
to inventory recovered from our Mykolaiv and other facilities in
Ukraine. The circumstances allowing for recovery of these
inventories did not exist and were unforeseeable when the inventory
reserves were initially recorded in 2022 in conjunction with the
Ukraine-Russia war.
Corporate and Other
The following is a summary of acquisition and integration costs
related to the announced business combination agreement with
Viterra recorded in the Company's Condensed Consolidated Statements
of Income (Loss).
Three Months Ended
(US$ in millions)
Jun 30, 2024
Jun 30, 2023
Selling, general and administrative
expenses
$
(62
)
$
(18
)
Interest expense
$
(4
)
$
(11
)
Income tax (expense) benefit
$
4
$
3
Net income (loss)
$
(62
)
$
(26
)
EBIT for the three months ended June 30, 2023 also included a
$16 million impairment charge, in Income (loss) from affiliates,
related to a minority investment in Australian Plant Proteins, a
start-up manufacturer of novel protein ingredients.
Certain gains and (charges), year-to-date
The following table provides a summary of certain gains and
(charges) that may be of interest to investors, including a
description of these items and their effect on Net income (loss)
attributable to Bunge, Earnings per share diluted and Segment EBIT
for the six month periods ended June 30, 2024 and 2023.
(US$ in millions, except per share
data)
Net Income (Loss)
Attributable to
Bunge
Earnings
Per Share
Diluted (6)
Segment
EBIT
Six months ended June 30,
2024
2023
2024
2023
2024
2023
Core Segments:
$
—
$
16
$
—
$
0.11
$
—
$
19
Agribusiness
$
—
$
16
$
—
$
0.11
$
—
$
19
Ukraine-Russia War
—
16
—
0.11
—
19
Refined and Specialty Oils
$
—
$
—
$
—
$
—
$
—
$
—
Milling
$
—
$
—
$
—
$
—
$
—
$
—
Corporate and Other:
$
(123
)
$
(42
)
$
(0.85
)
$
(0.28
)
$
(123
)
$
(34
)
Acquisition and integration costs
(123
)
(26
)
(0.85
)
(0.17
)
(123
)
(18
)
Impairment of equity method investment
—
(16
)
—
(0.11
)
—
(16
)
Non-core Segment:
$
—
$
—
$
—
$
—
$
—
$
—
Sugar & Bioenergy
$
—
$
—
$
—
$
—
$
—
$
—
Total
$
(123
)
$
(26
)
$
(0.85
)
$
(0.17
)
$
(123
)
$
(15
)
Core Segments
Agribusiness
EBIT for the six months ended June 30, 2023 included a
mark-to-market gain of $19 million, in Cost of goods sold, related
to inventory recovered from our Mykolaiv and other facilities in
Ukraine. The circumstances allowing for recovery of these
inventories did not exist and were unforeseeable when the inventory
reserves were initially recorded in 2022 in conjunction with the
Ukraine-Russia war.
Corporate and Other
The following is a summary of acquisition and integration costs
related to the announced business combination agreement with
Viterra recorded in the Company's Condensed Consolidated Statements
of Income (Loss).
Six Months Ended
(US$ in millions)
Jun 30, 2024
Jun 30, 2023
Selling, general and administrative
expenses
$
(123
)
$
(18
)
Interest expense
$
(8
)
$
(11
)
Income tax (expense) benefit
$
8
$
3
Net income (loss)
$
(123
)
$
(26
)
EBIT for the six months ended June 30, 2023 also included a $16
million impairment charge, in Income (loss) from affiliates,
related to a minority investment in Australian Plant Proteins, a
start-up manufacturer of novel protein ingredients.
- Consolidated Earnings Data (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(US$ in millions, except per share
data)
2024
2023
2024
2023
Net sales
$
13,241
$
15,049
$
26,658
$
30,377
Cost of goods sold
(12,577
)
(13,684
)
(25,118
)
(27,831
)
Gross profit
664
1,365
1,540
2,546
Selling, general and administrative
expenses
(449
)
(420
)
(888
)
(773
)
Foreign exchange (losses) gains – net
(37
)
(66
)
(115
)
(17
)
Other income (expense) – net
57
12
125
27
Income (loss) from affiliates
(46
)
25
(38
)
44
EBIT attributable to noncontrolling
interest (a) (1)
(4
)
(4
)
(6
)
(29
)
Total Segment EBIT
185
912
618
1,798
Interest income
37
40
79
83
Interest expense
(123
)
(129
)
(231
)
(241
)
Income tax (expense) benefit
(30
)
(198
)
(147
)
(381
)
Noncontrolling interest share of interest
and tax (a) (1)
1
(3
)
(5
)
(5
)
Net income (loss) attributable to Bunge
(1)
$
70
$
622
$
314
$
1,254
Net income (loss) attributable to Bunge
shareholders - diluted (6)
$
0.48
$
4.09
$
2.17
$
8.24
Weighted–average shares outstanding -
diluted (6)
143
152
144
152
(a) The line items "EBIT attributable to
noncontrolling interest" and "Noncontrolling interest share of
interest and tax" when combined, represent consolidated Net
(income) loss attributable to noncontrolling interests and
redeemable noncontrolling interests on a U.S. GAAP basis of
presentation.
- Condensed Consolidated Balance Sheets (Unaudited)
June 30,
December 31,
(US$ in millions)
2024
2023
Assets
Cash and cash equivalents
$
1,161
$
2,602
Trade accounts receivable, net
2,277
2,592
Inventories (a)
8,057
7,105
Other current assets
3,957
4,051
Total current assets
15,452
16,350
Property, plant and equipment, net
4,751
4,541
Operating lease assets
927
926
Goodwill and other intangible assets,
net
821
887
Investments in affiliates
1,193
1,280
Other non-current assets
1,284
1,388
Total assets
$
24,428
$
25,372
Liabilities and Equity
Short-term debt
$
949
$
797
Current portion of long-term debt
5
5
Trade accounts payable
3,429
3,664
Current operating lease obligations
300
308
Other current liabilities
2,923
2,913
Total current liabilities
7,606
7,687
Long-term debt
4,086
4,080
Non-current operating lease
obligations
577
566
Other non-current liabilities
1,174
1,224
Total liabilities
13,443
13,557
Redeemable noncontrolling
interest
1
1
Total equity
10,984
11,814
Total liabilities, redeemable
noncontrolling interest and equity
$
24,428
$
25,372
(a) Includes readily marketable
inventories of $6,776 million and $5,837 million at June 30, 2024
and December 31, 2023, respectively. Of the total RMI, $5,527
million and $4,242 million can be attributable to merchandising
activities at June 30, 2024 and December 31, 2023,
respectively.
- Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June
30,
(US$ in millions)
2024
2023
Operating Activities
Net income (loss) (1)
$
325
$
1,288
Adjustments to reconcile net income (loss)
to cash provided by (used for) operating activities:
Impairment charges
9
22
Foreign exchange (gain) loss on net
debt
103
(174
)
Depreciation, depletion and
amortization
226
208
Share-based compensation expense
34
34
Deferred income tax expense (benefit)
(27
)
67
Results from affiliates
38
(61
)
Other, net
49
53
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
Trade accounts receivable
173
290
Inventories
(1,273
)
(195
)
Secured advances to suppliers
88
(11
)
Trade accounts payable and accrued
liabilities
(147
)
(605
)
Advances on sales
(90
)
(220
)
Net unrealized (gain) loss on derivative
contracts
329
(262
)
Margin deposits
(315
)
(22
)
Recoverable and income taxes, net
(149
)
(87
)
Marketable securities
(21
)
36
Other, net
168
111
Cash provided by (used for) operating
activities
(480
)
472
Investing Activities
Payments made for capital expenditures
(533
)
(541
)
Proceeds from investments
554
14
Payments for investments
(638
)
(20
)
Settlement of net investment hedges
(1
)
(48
)
Proceeds from beneficial interest in
securitized trade receivables
—
79
Proceeds from sales of businesses and
property, plant and equipment
3
162
Proceeds from investments in
affiliates
103
—
Payments for investments in affiliates
(18
)
(130
)
Other, net
(18
)
100
Cash provided by (used for) investing
activities
(548
)
(384
)
Financing Activities
Net borrowings (repayments) of short-term
debt
177
149
Net proceeds (repayments) of long-term
debt
14
99
Repurchases of registered or common
shares
(400
)
—
Dividends paid to registered or common
shareholders
(191
)
(188
)
Contributions from (Return of capital to)
noncontrolling interest
31
33
Other, net
(19
)
(1
)
Cash provided by (used for) financing
activities
(388
)
92
Effect of exchange rate changes on cash
and cash equivalents, and restricted cash
(6
)
28
Net increase (decrease) in cash and
cash equivalents, and restricted cash
(1,422
)
208
Cash and cash equivalents, and
restricted cash - beginning of period
2,623
1,152
Cash and cash equivalents, and
restricted cash - end of period
$
1,201
$
1,360
- Definition and Reconciliation of Non-GAAP Measures
This earnings release contains certain "non-GAAP financial
measures" as defined in Regulation G of the Securities Exchange Act
of 1934. Bunge has reconciled these non-GAAP financial measures to
the most directly comparable U.S. GAAP measures below. These
measures may not be comparable to similarly titled measures used by
other companies.
Total Segment EBIT and Adjusted Total Segment EBIT
Bunge uses segment earnings before interest and tax (“Segment
EBIT”) to evaluate the operating performance of its individual
segments. Segment EBIT excludes EBIT attributable to noncontrolling
interests. Bunge also uses Core Segment EBIT, Non-core Segment
EBIT, Corporate and Other EBIT and Total Segment EBIT to evaluate
the operating performance of Bunge’s Core reportable segments,
Non-core reportable segments and Total reportable segments together
with Corporate and Other. Core Segment EBIT is the aggregate of the
earnings before interest and taxes of each of Bunge’s Agribusiness,
Refined and Specialty Oils, and Milling segments. Non-core Segment
EBIT is the earnings before interest and taxes of Bunge’s Sugar
& Bioenergy segment. Total Segment EBIT is the aggregate of the
earnings before interest and taxes of Bunge’s Core and Non-core
reportable segments, together with its Corporate and Other
activities.
Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT,
Adjusted Corporate and Other EBIT and Adjusted Total Segment EBIT,
are calculated by excluding temporary mark-to-market timing
differences, as defined in note 3 below, and certain gains and
(charges), as described in "Additional Financial Information"
above, from Core Segment EBIT, Non-Core Segment EBIT, Corporate and
Other EBIT, and Total Segment EBIT, respectively.
Core Segment EBIT, Non-core Segment EBIT, Corporate and Other
EBIT, Total Segment EBIT, Adjusted Core Segment EBIT, Adjusted
Non-core Segment EBIT, Adjusted Corporate and Other EBIT and
Adjusted Total Segment EBIT are non-GAAP financial measures and are
not intended to replace Net income (loss) attributable to Bunge,
the most directly comparable U.S. GAAP financial measure. Bunge's
management believes these non-GAAP measures are a useful measure of
its operating profitability, since the measures allow for an
evaluation of segment performance without regard to their financing
methods or capital structure. For this reason, operating
performance measures such as these non-GAAP measures are widely
used by analysts and investors in Bunge's industries. These
non-GAAP measures are not a measure of consolidated operating
results under U.S. GAAP and should not be considered as an
alternative to Net income (loss) or any other measure of
consolidated operating results under U.S. GAAP.
Net Income (loss) attributable to Bunge to Adjusted Net
Income (loss) attributable to Bunge
Adjusted Net Income (loss) excludes temporary mark-to-market
timing differences, as defined in note 3 below, and certain gains
and (charges), as described in "Additional Financial Information"
above, and is a non-GAAP financial measure. This measure is not a
measure of Net income (loss) attributable to Bunge, the most
directly comparable U.S. GAAP financial measure. It should not be
considered as an alternative to Net Income (loss) attributable to
Bunge, Net Income (loss), or any other measure of consolidated
operating results under U.S. GAAP. Adjusted Net income (loss) is a
useful measure of the Company's profitability.
We also have presented projected Adjusted Net income per share
for 2024. This information is provided only on a non-GAAP basis
without reconciliation to projected Net Income per share for 2024,
the mostly directly comparable U.S. GAAP measure. The most directly
comparable GAAP measure has not been provided due to the inability
to quantify certain amounts necessary for such reconciliation,
including but not limited to potentially significant future market
price movements over the remainder of the year.
Below is a reconciliation of Net income (loss) attributable to
Bunge, to Total Segment EBIT, and Adjusted Total Segment EBIT:
Three Months Ended
June 30,
Six Months Ended
June 30,
(US$ in millions)
2024
2023
2024
2023
Net income (loss) attributable to
Bunge
$
70
$
622
$
314
$
1,254
Interest income
(37
)
(40
)
(79
)
(83
)
Interest expense
123
129
231
241
Income tax expense (benefit)
30
198
147
381
Noncontrolling interest share of interest
and tax
(1
)
3
5
5
Total Segment EBIT
$
185
$
912
$
618
$
1,798
Agribusiness EBIT
$
138
$
785
$
416
$
1,490
Refined and Specialty Oils EBIT
185
217
411
$
450
Milling EBIT
38
14
71
$
23
Core Segment EBIT
$
361
$
1,016
$
898
$
1,963
Corporate and Other EBIT
$
(155
)
$
(155
)
$
(283
)
$
(235
)
Sugar & Bioenergy EBIT
$
(21
)
$
51
$
3
$
70
Non-Core Segment EBIT
$
(21
)
$
51
$
3
$
70
Total Segment EBIT
$
185
$
912
$
618
$
1,798
Mark-to-market timing difference
158
(114
)
340
(295
)
Certain (gains) & charges
62
25
123
15
Adjusted Total Segment EBIT
$
405
$
823
$
1,081
$
1,518
Below is a reconciliation of Net income (loss) attributable to
Bunge, to Adjusted Net income (loss) attributable to Bunge:
Three Months Ended
June 30,
Six Months Ended
June 30,
(US$ in millions, except per share
data)
2024
2023
2024
2023
Net income (loss) attributable to
Bunge
$
70
$
622
$
314
$
1,254
Adjustment for Mark-to-market timing
difference
116
(89
)
252
(217
)
Adjusted for Certain (gains) and
charges:
Acquisition and integration costs
62
26
123
26
Impairment of equity method
investments
—
16
—
16
Ukraine-Russia war
—
(8
)
—
(16
)
Adjusted Net income (loss) attributable
to Bunge
$
248
$
567
$
689
$
1,063
Weighted-average shares outstanding -
diluted (a)(6)
143
152
144
152
Adjusted Net income (loss) per share -
diluted (6)
$
1.73
$
3.72
$
4.77
$
6.98
(a) There were less than 1 million
anti-dilutive contingently issuable restricted stock units excluded
from the weighted-average number of shares outstanding for each of
the three and six months ended June 30, 2024 and 2023.
Adjusted Funds From Operations
Adjusted FFO is calculated by excluding from Cash provided by
(used for) operating activities, foreign exchange gain (loss) on
net debt, working capital changes, net (income) loss attributable
to noncontrolling interests and redeemable noncontrolling
interests, and mark-to-market timing differences after tax.
Adjusted FFO is a non-GAAP financial measure and is not intended to
replace Cash provided by (used for) operating activities, the most
directly comparable U.S. GAAP financial measure. Bunge's management
believes the presentation of this measure allows investors to view
its cash generating performance using the same measure that
management uses in evaluating financial and business performance
and trends without regard to foreign exchange gains and losses,
working capital changes and mark-to-market timing differences. This
non-GAAP measure is not a measure of consolidated cash flow under
U.S. GAAP and should not be considered as an alternative to Cash
provided by (used for) operating activities, Net increase
(decrease) in cash and cash equivalents, and restricted cash, or
any other measure of consolidated cash flow under U.S. GAAP.
(1)
A reconciliation of Net income (loss)
attributable to Bunge, to Net income (loss) is as follows:
Three months ended June
30,
Six months ended June
30,
(US$ in millions)
2024
2023
2024
2023
Net income (loss) attributable to
Bunge
$
70
$
622
$
314
$
1,254
EBIT attributable to noncontrolling
interest
4
4
6
29
Noncontrolling interest share of interest
and tax
(1
)
3
5
5
Net income (loss)
$
73
$
629
$
325
$
1,288
(2)
The Processing business included in our
Agribusiness segment consists of: global oilseed processing
activities, which principally include the origination and crushing
of oilseeds (including soybeans, canola, rapeseed and sunflower
seed) into protein meals and vegetable oils; the distribution of
oilseeds, oilseed products and fertilizer products through our port
terminals and transportation assets (including trucks, railcars,
barges and ocean vessels); fertilizer production; and biodiesel
production, which is partially conducted through joint
ventures.
The Merchandising business included in our
Agribusiness segment primarily consists of: global grain
origination activities, which principally include the purchasing,
cleaning, drying, storing and handling of corn, wheat and barley at
our network of grain elevators; global trading and distribution of
grains and oils; logistical services for the distribution of these
commodities to our customer markets through our port terminals and
transportation assets (including trucks, railcars, barges and ocean
vessels); and financial services and activities for customers from
whom we purchase commodities, and other third parties.
(3)
Mark-to-market timing difference comprises
the estimated net temporary impact resulting from unrealized
period-end gains/losses associated with the fair valuation of
certain forward contracts, readily marketable inventories (RMI),
and related futures contracts associated with our committed future
operating capacity. The impact of these mark-to-market timing
differences, which is expected to reverse over time due to the
forward contracts, RMI, and related futures contracts being part of
an economically-hedged position, is not representative of the
operating performance of our business.
(4)
A reconciliation of Cash provided by (used
for) operating activities to Adjusted funds from operations (FFO)
is as follows:
Six months ended June
30,
(US$ in millions)
2024
2023
Cash provided by (used for) operating
activities
$
(480
)
$
472
Foreign exchange gain (loss) on net
debt
(103
)
174
Working capital changes
1,237
965
Net (income) loss attributable to
noncontrolling interests and redeemable noncontrolling
interests
(11
)
(34
)
Mark-to-Market timing difference, after
tax
252
(217
)
Adjusted FFO
$
895
$
1,360
(5)
We have not presented a comparable U.S.
GAAP financial measure for any full-year 2024 outlook financial
measures presented on an adjusted, non-GAAP basis because the
information necessary for such presentation is unavailable at this
time. The information necessary to prepare the comparable U.S. GAAP
presentation could result in significant differences from the
non-GAAP financial measures presented in this release. Please see
“Definition and Reconciliation of Non-GAAP Measures” for more
information.
(6)
On November 1, 2023, Bunge Global SA
completed the change of its jurisdiction of incorporation of its
group holding company from Bermuda to Switzerland (the
"Redomestication"). The Redomestication, which was approved by
Bunge Limited shareholders on October 5, 2023, was effected
pursuant to a scheme of arrangement under Bermuda law. Each common
share of Bunge Limited was cancelled in exchange for an equal
number and par value of registered shares of Bunge Global SA (the
"registered shares"). References to the terms "share," "common
share," or "registered share" refer to Bunge Limited common shares
prior to the Redomestication and Bunge Global SA registered shares
after the Redomestication, unless otherwise specified.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731495318/en/
Investor Contact: Ruth Ann Wisener Bunge Global SA
636-292-3014 ruthann.wisener@bunge.com
Media Contact: Bunge News Bureau Bunge Global SA
636-292-3022 news@bunge.com
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