Bunge Reports First Quarter 2024 Results
- None.
- None.
Insights
-
Q1 GAAP diluted EPS of
$1.68 $4.15 $3.04 $3.26 - In Agribusiness higher Processing results were more than offset by lower results in Merchandising
- Refined and Specialty Oils down from a strong prior year
- Significant progress on Viterra integration planning and other growth initiatives
-
Repurchased
$400 million -
Maintaining adjusted full-year EPS outlook of approximately
$9.00
- Overview
Greg Heckman, Bunge’s Chief Executive Officer, commented, “We are pleased with our first quarter results, which reflect our team’s strong execution in a more balanced market environment. During the quarter we invested further in our pipeline of growth projects and made excellent progress on integration planning for our announced combination with Viterra.”
“While we are off to a strong start, we continue to have limited visibility into the back half of the year. However, we are confident in our team’s ability to stay agile and capture opportunities ahead of us as we remain focused on delivering on our mission of connecting farmers to consumers to deliver essential food, feed and fuel to the world.”
- Financial Highlights
|
Three Months Ended
|
|||||
(US$ in millions, except per share data) |
|
2024 |
|
|
2023 |
|
Net income attributable to Bunge |
$ |
244 |
|
$ |
632 |
|
Net income per share-diluted (6) |
$ |
1.68 |
|
$ |
4.15 |
|
|
|
|
||||
Mark-to-market timing differences (a) |
$ |
0.94 |
|
$ |
(0.84 |
) |
Certain (gains) & charges (b) |
$ |
0.42 |
|
$ |
(0.05 |
) |
Adjusted Net income per share-diluted (c)(6) |
$ |
3.04 |
|
$ |
3.26 |
|
|
|
|
||||
Core Segment EBIT (c) (d) |
$ |
537 |
|
$ |
947 |
|
Mark-to-market timing differences (a) |
|
182 |
|
|
(181 |
) |
Certain (gains) & charges (b) |
|
— |
|
|
(10 |
) |
Adjusted Core Segment EBIT (c) |
$ |
719 |
|
$ |
756 |
|
|
|
|
||||
Corporate and Other EBIT (c) |
$ |
(128 |
) |
$ |
(80 |
) |
Certain (gains) & charges (b) |
|
61 |
|
|
— |
|
Adjusted Corporate and Other EBIT (c) |
$ |
(67 |
) |
$ |
(80 |
) |
|
|
|
||||
Non-core Segment EBIT (c) (e) |
$ |
24 |
|
$ |
19 |
|
Certain (gains) & charges (b) |
|
— |
|
|
— |
|
Adjusted Non-core Segment EBIT (c) |
$ |
24 |
|
$ |
19 |
|
|
|
|
||||
Total Segment EBIT (c) |
$ |
433 |
|
$ |
886 |
|
Mark-to-market timing differences (a) |
|
182 |
|
|
(181 |
) |
Certain (gains) & charges (b) |
|
61 |
|
|
(10 |
) |
Adjusted Total Segment EBIT (c) |
$ |
676 |
|
$ |
695 |
|
| (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 |
|
| (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. |
- First Quarter Results
Core Segments
Agribusiness
|
Three Months Ended |
|||||
(US$ in millions, except per share data) |
Mar 31, 2024 |
Mar 31, 2023 |
||||
Volumes (in thousand metric tons) |
|
20,192 |
|
|
18,386 |
|
|
|
|
||||
Net Sales |
$ |
9,740 |
|
$ |
10,852 |
|
|
|
|
||||
Gross Profit |
$ |
454 |
|
$ |
808 |
|
|
|
|
||||
Selling, general and administrative expense |
$ |
(155 |
) |
$ |
(132 |
) |
|
|
|
||||
Foreign exchange (losses) gains – net |
$ |
(62 |
) |
$ |
39 |
|
|
|
|
||||
EBIT attributable to noncontrolling interests |
$ |
3 |
|
$ |
(21 |
) |
|
|
|
||||
Other income (expense) - net |
$ |
53 |
|
$ |
11 |
|
|
|
|
||||
Income (loss) from affiliates |
$ |
(15 |
) |
$ |
— |
|
|
|
|
||||
Segment EBIT |
$ |
278 |
|
$ |
705 |
|
Mark-to-market timing differences |
|
209 |
|
|
(183 |
) |
Certain (gains) & charges |
|
— |
|
|
(10 |
) |
Adjusted Segment EBIT |
$ |
487 |
|
$ |
512 |
|
|
|
|
||||
Certain (gains) & charges, Net income (loss) attributable to Bunge |
$ |
— |
|
$ |
(8 |
) |
Certain (gains) & charges, Earnings per share |
$ |
— |
|
$ |
(0.05 |
) |
Processing (2)
|
Three Months Ended |
||||
(US$ in millions) |
Mar 31, 2024 |
Mar 31, 2023 |
|||
Processing EBIT |
$ |
180 |
$ |
637 |
|
Mark-to-market timing differences |
|
231 |
|
(223 |
) |
Certain (gains) & charges |
|
— |
|
(10 |
) |
Adjusted Processing EBIT |
$ |
411 |
$ |
404 |
|
Higher results in
Merchandising (2)
|
Three Months Ended |
||||
(US$ in millions) |
Mar 31, 2024 |
Mar 31, 2023 |
|||
Merchandising EBIT |
$ |
98 |
|
$ |
68 |
Mark-to-market timing differences |
|
(22 |
) |
|
40 |
Certain (gains) & charges |
|
— |
|
|
— |
Adjusted Merchandising EBIT |
$ |
76 |
|
$ |
108 |
Lower results were primarily driven by our global grains and oils value chains where higher volumes were more than offset by lower margins.
Refined & Specialty Oils
|
Three Months Ended |
|||||
(US$ in millions, except per share data) |
Mar 31, 2024 |
Mar 31, 2023 |
||||
Volumes (in thousand metric tons) |
|
2,195 |
|
|
2,146 |
|
|
|
|
||||
Net Sales |
$ |
3,240 |
|
$ |
3,888 |
|
|
|
|
||||
Gross Profit |
$ |
359 |
|
$ |
342 |
|
|
|
|
||||
Selling, general and administrative expense |
$ |
(100 |
) |
$ |
(95 |
) |
|
|
|
||||
Foreign exchange (losses) gains – net |
$ |
(11 |
) |
$ |
5 |
|
|
|
|
||||
EBIT attributable to noncontrolling interests |
$ |
(6 |
) |
$ |
(4 |
) |
|
|
|
||||
Other income (expense) - net |
$ |
(16 |
) |
$ |
(15 |
) |
|
|
|
||||
Segment EBIT |
$ |
226 |
|
$ |
233 |
|
Mark-to-market timing differences |
|
(22 |
) |
|
1 |
|
Certain (gains) & charges |
|
— |
|
|
— |
|
Adjusted Segment EBIT |
$ |
204 |
|
$ |
234 |
|
|
|
|
||||
Certain (gains) & charges, Net income (loss) attributable to Bunge |
$ |
— |
|
$ |
— |
|
Certain (gains) & charges, Earnings per share |
$ |
— |
|
$ |
— |
|
Refined & Specialty Oils Summary
Higher results in
Milling
|
Three Months Ended |
|||||
(US$ in millions, except per share data) |
Mar 31, 2024 |
Mar 31, 2023 |
||||
Volumes (in thousand metric tons) |
|
874 |
|
|
821 |
|
|
|
|
||||
Net Sales |
$ |
381 |
|
$ |
515 |
|
|
|
|
||||
Gross Profit |
$ |
60 |
|
$ |
31 |
|
|
|
|
||||
Selling, general and administrative expense |
$ |
(25 |
) |
$ |
(21 |
) |
|
|
|
||||
Other income (expense) - net |
$ |
(2 |
) |
$ |
(1 |
) |
|
|
|
||||
Segment EBIT |
$ |
33 |
|
$ |
9 |
|
Mark-to-market timing differences |
|
(5 |
) |
|
1 |
|
Certain (gains) & charges |
|
— |
|
|
— |
|
Adjusted Segment EBIT |
$ |
28 |
|
$ |
10 |
|
|
|
|
||||
Certain (gains) & charges, Net income (loss) attributable to Bunge |
$ |
— |
|
$ |
— |
|
Certain (gains) & charges, Earnings per share |
$ |
— |
|
$ |
— |
|
Milling Summary
Higher results in the quarter were driven by
Corporate and Other
|
Three Months Ended |
|||||
(US$ in millions, except per share data) |
Mar 31, 2024 |
Mar 31, 2023 |
||||
Gross Profit |
$ |
2 |
|
$ |
— |
|
|
|
|
||||
Selling, general and administrative expense |
$ |
(159 |
) |
$ |
(105 |
) |
|
|
|
||||
Foreign exchange (losses) gains – net |
$ |
(5 |
) |
$ |
5 |
|
|
|
|
||||
EBIT attributable to noncontrolling interests |
$ |
1 |
|
$ |
— |
|
|
|
|
||||
Other income (expense) - net |
$ |
33 |
|
$ |
20 |
|
|
|
|
||||
Segment EBIT |
$ |
(128 |
) |
$ |
(80 |
) |
Certain (gains) & charges |
|
61 |
|
|
— |
|
Adjusted Segment EBIT |
$ |
(67 |
) |
$ |
(80 |
) |
|
|
|
||||
Certain (gains) & charges, Net income (loss) attributable to Bunge |
$ |
61 |
|
$ |
— |
|
Certain (gains) & charges, Earnings per share |
$ |
0.42 |
|
$ |
— |
|
Corporate
|
Three Months Ended |
|||||
(US$ in millions) |
Mar 31, 2024 |
Mar 31, 2023 |
||||
Corporate EBIT |
$ |
(140 |
) |
$ |
(87 |
) |
Certain (gains) & charges |
|
61 |
|
|
— |
|
Adjusted Corporate EBIT |
$ |
(79 |
) |
$ |
(87 |
) |
Other
|
Three Months Ended |
|||
(US$ in millions) |
Mar 31, 2024 |
Mar 31, 2023 |
||
Other EBIT |
$ |
12 |
$ |
7 |
Certain (gains) & charges |
|
— |
|
— |
Adjusted Other EBIT |
$ |
12 |
$ |
7 |
Corporate and Other Summary
The decrease in Corporate expenses primarily reflected the timing of performance-based compensation. Higher Other results are related to Bunge Ventures and our captive insurance program.
Non-core Segments
Sugar & Bioenergy
|
Three Months Ended |
|||
(US$ in millions, except per share data) |
Mar 31, 2024 |
Mar 31, 2023 |
||
Net Sales |
$ |
43 |
$ |
64 |
|
|
|
||
Gross Profit |
$ |
1 |
$ |
— |
|
|
|
||
Income (loss) from affiliates |
$ |
23 |
$ |
19 |
|
|
|
||
Segment EBIT |
$ |
24 |
$ |
19 |
Certain (gains) & charges |
|
— |
|
— |
Adjusted Segment EBIT |
$ |
24 |
$ |
19 |
|
|
|
||
Certain (gains) & charges, Net income (loss) attributable to Bunge |
$ |
— |
$ |
— |
Certain (gains) & charges, Earnings per share |
$ |
— |
$ |
— |
Sugar & Bioenergy Summary
Improved performance was primarily driven by higher sugar volumes and prices, more than offsetting lower ethanol prices.
Cash Flow
|
Three Months Ended |
|||||
|
Mar 31, 2024 |
Mar 31, 2023 |
||||
Cash provided by (used for) operating activities |
$ |
994 |
|
$ |
931 |
|
Certain reconciling items to Adjusted funds from operations (4) |
|
(480 |
) |
|
(306 |
) |
Adjusted funds from operations (4) |
$ |
514 |
|
$ |
625 |
|
Cash provided by operations in the three months ended March 31, 2024 was
Income Taxes
For the three months ended March 31, 2024, income tax expense was
Outlook(5)
Taking into account first quarter results and the current margin environment and forward curves, we continue to expect full-year 2024 adjusted EPS of approximately
In Agribusiness, full-year results are forecasted to be similar to our previous outlook and down from last year primarily due to lower results in Processing where margins remain compressed in most regions.
In Refined and Specialty Oils, full-year results are expected to be similar to our previous outlook and down from the record prior year reflecting a shift in the supply environment, particularly in the
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 and up from last year.
In Non-Core, full-year results in the sugar and bioenergy joint venture are expected to be similar to our previous outlook and significantly down from last year reflecting lower Brazilian ethanol prices.
Additionally, the Company expects the following for 2024: an adjusted annual effective tax rate of
- 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, April 24, 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 “Q1 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
A replay of the call will be available later in the day on April 24, 2024, continuing through May 24, 2024. To listen to it, please dial 1-877-344-7529 in
- About Bunge
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
- Website Information
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,
- 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 onRussia , including the impact on us resulting from the continuation and/or escalation of the war and sanctions againstRussia ; - 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 March 31, 2024 and 2023.
(US$ in millions, except per share data) |
Net Income (Loss)
|
Earnings
|
Segment
|
|||||||||||||||
Three Months Ended March 31, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
|
|
|
|
|
|
||||||||||||
Core Segments: |
$ |
— |
|
$ |
8 |
$ |
— |
|
$ |
0.05 |
$ |
— |
|
$ |
10 |
|||
Agribusiness |
$ |
— |
|
$ |
8 |
$ |
— |
|
$ |
0.05 |
$ |
— |
|
$ |
10 |
|||
Ukraine-Russia War |
|
— |
|
|
8 |
|
— |
|
|
0.05 |
|
— |
|
|
10 |
|||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Refined and Specialty Oils |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
|||
|
|
|
|
|
|
|
||||||||||||
Milling |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
|||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Corporate and Other: |
$ |
(61 |
) |
$ |
— |
$ |
(0.42 |
) |
$ |
— |
$ |
(61 |
) |
$ |
— |
|||
Acquisition and integration costs |
|
(61 |
) |
|
— |
|
(0.42 |
) |
|
— |
|
(61 |
) |
|
— |
|||
|
|
|
|
|
|
|
||||||||||||
Non-core Segment: |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
|||
Sugar & Bioenergy |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
|||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Total |
$ |
(61 |
) |
$ |
8 |
$ |
(0.42 |
) |
$ |
0.05 |
$ |
(61 |
) |
$ |
10 |
|||
See Definition and Reconciliation of Non-GAAP Measures. |
||||||||||||||||||
Core Segments
Agribusiness
EBIT for the three months ended March 31, 2023 included a mark-to-market gain of
Corporate and Other
Net income for the three months ended March 31, 2024 included
- Consolidated Earnings Data (Unaudited)
|
Three Months Ended
|
|||||
(US$ in millions, except per share data) |
|
2024 |
|
|
2023 |
|
Net sales |
$ |
13,417 |
|
$ |
15,328 |
|
Cost of goods sold |
|
(12,541 |
) |
|
(14,147 |
) |
Gross profit |
|
876 |
|
|
1,181 |
|
Selling, general and administrative expenses |
|
(439 |
) |
|
(353 |
) |
Foreign exchange (losses) gains – net |
|
(78 |
) |
|
49 |
|
Other income (expense) – net |
|
68 |
|
|
15 |
|
Income (loss) from affiliates |
|
8 |
|
|
19 |
|
EBIT attributable to noncontrolling interest (a) (1) |
|
(2 |
) |
|
(25 |
) |
Total Segment EBIT |
|
433 |
|
|
886 |
|
Interest income |
|
42 |
|
|
43 |
|
Interest expense |
|
(108 |
) |
|
(112 |
) |
Income tax (expense) benefit |
|
(117 |
) |
|
(183 |
) |
Noncontrolling interest share of interest and tax (a) (1) |
|
(6 |
) |
|
(2 |
) |
Net income (loss) attributable to Bunge (1) |
$ |
244 |
|
$ |
632 |
|
|
|
|
||||
Net income (loss) attributable to Bunge shareholders - diluted (6) |
$ |
1.68 |
|
$ |
4.15 |
|
Weighted–average shares outstanding - diluted (6) |
|
145 |
|
|
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 |
- Condensed Consolidated Balance Sheets (Unaudited)
|
March 31, |
|
December 31, |
||
(US$ in millions) |
2024 |
|
2023 |
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
2,939 |
|
$ |
2,602 |
Trade accounts receivable, net |
|
2,285 |
|
|
2,592 |
Inventories (a) |
|
7,505 |
|
|
7,105 |
Other current assets |
|
4,011 |
|
|
4,051 |
Total current assets |
|
16,740 |
|
|
16,350 |
Property, plant and equipment, net |
|
4,620 |
|
|
4,541 |
Operating lease assets |
|
922 |
|
|
926 |
Goodwill and other intangible assets, net |
|
860 |
|
|
887 |
Investments in affiliates |
|
1,296 |
|
|
1,280 |
Other non-current assets |
|
1,383 |
|
|
1,388 |
Total assets |
$ |
25,821 |
|
$ |
25,372 |
|
|
|
|
||
Liabilities and Equity |
|
|
|
||
Short-term debt |
$ |
1,010 |
|
$ |
797 |
Current portion of long-term debt |
|
6 |
|
|
5 |
Trade accounts payable |
|
4,503 |
|
|
3,664 |
Current operating lease obligations |
|
315 |
|
|
308 |
Other current liabilities |
|
2,595 |
|
|
2,913 |
Total current liabilities |
|
8,429 |
|
|
7,687 |
Long-term debt |
|
4,079 |
|
|
4,080 |
Non-current operating lease obligations |
|
557 |
|
|
566 |
Other non-current liabilities |
|
1,227 |
|
|
1,224 |
Total liabilities |
|
14,292 |
|
|
13,557 |
Redeemable noncontrolling interest |
|
1 |
|
|
1 |
Total equity |
|
11,528 |
|
|
11,814 |
Total liabilities, redeemable noncontrolling interest and equity |
$ |
25,821 |
|
$ |
25,372 |
(a) Includes readily marketable inventories of |
- Condensed Consolidated Statements of Cash Flows (Unaudited)
|
Three Months Ended
|
||||||
(US$ in millions) |
|
2024 |
|
|
|
2023 |
|
Operating Activities |
|
|
|
||||
Net income (loss) (1) |
$ |
252 |
|
|
$ |
659 |
|
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: |
|
|
|
||||
Foreign exchange (gain) loss on net debt |
|
(2 |
) |
|
|
(50 |
) |
Depreciation, depletion and amortization |
|
112 |
|
|
|
102 |
|
Share-based compensation expense |
|
17 |
|
|
|
17 |
|
Deferred income tax expense (benefit) |
|
(10 |
) |
|
|
11 |
|
Results from affiliates |
|
(8 |
) |
|
|
(19 |
) |
Other, net |
|
23 |
|
|
|
10 |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||||
Trade accounts receivable |
|
284 |
|
|
|
5 |
|
Inventories |
|
(484 |
) |
|
|
(434 |
) |
Secured advances to suppliers |
|
34 |
|
|
|
15 |
|
Trade accounts payable and accrued liabilities |
|
774 |
|
|
|
802 |
|
Advances on sales |
|
(30 |
) |
|
|
(119 |
) |
Net unrealized (gain) loss on derivative contracts |
|
249 |
|
|
|
(424 |
) |
Margin deposits |
|
(227 |
) |
|
|
141 |
|
Recoverable and income taxes, net |
|
(11 |
) |
|
|
128 |
|
Marketable securities |
|
(6 |
) |
|
|
13 |
|
Other, net |
|
27 |
|
|
|
74 |
|
Cash provided by (used for) operating activities |
|
994 |
|
|
|
931 |
|
Investing Activities |
|
|
|
||||
Payments made for capital expenditures |
|
(236 |
) |
|
|
(173 |
) |
Proceeds from investments |
|
239 |
|
|
|
1 |
|
Payments for investments |
|
(351 |
) |
|
|
(4 |
) |
Settlement of net investment hedges |
|
(9 |
) |
|
|
— |
|
Proceeds from beneficial interest in securitized trade receivables |
|
— |
|
|
|
61 |
|
Proceeds from sales of businesses and property, plant and equipment |
|
— |
|
|
|
159 |
|
Payments for investments in affiliates |
|
(16 |
) |
|
|
(94 |
) |
Other, net |
|
(23 |
) |
|
|
95 |
|
Cash provided by (used for) investing activities |
|
(396 |
) |
|
|
45 |
|
Financing Activities |
|
|
|
||||
Net borrowings (repayments) of short-term debt |
|
224 |
|
|
|
3 |
|
Net proceeds (repayments) of long-term debt |
|
14 |
|
|
|
999 |
|
Repurchases of registered or common shares |
|
(400 |
) |
|
|
— |
|
Dividends paid to registered or common shareholders |
|
(95 |
) |
|
|
(94 |
) |
Contributions from (Return of capital to) noncontrolling interest |
|
15 |
|
|
|
2 |
|
Other, net |
|
(17 |
) |
|
|
(9 |
) |
Cash provided by (used for) financing activities |
|
(259 |
) |
|
|
901 |
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
|
(9 |
) |
|
|
28 |
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
330 |
|
|
|
1,905 |
|
Cash and cash equivalents, and restricted cash - beginning of period |
|
2,623 |
|
|
|
1,152 |
|
Cash and cash equivalents, and restricted cash - end of period |
$ |
2,953 |
|
|
$ |
3,057 |
|
- 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
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
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
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
Below is a reconciliation of Net income (loss) attributable to Bunge, to Total Segment EBIT, and Adjusted Total Segment EBIT:
|
Three Months Ended
|
|||||
(US$ in millions) |
|
2024 |
|
|
2023 |
|
Net income (loss) attributable to Bunge |
$ |
244 |
|
$ |
632 |
|
Interest income |
|
(42 |
) |
|
(43 |
) |
Interest expense |
|
108 |
|
|
112 |
|
Income tax expense (benefit) |
|
117 |
|
|
183 |
|
Noncontrolling interest share of interest and tax |
|
6 |
|
|
2 |
|
Total Segment EBIT |
$ |
433 |
|
$ |
886 |
|
|
|
|
||||
Agribusiness EBIT |
$ |
278 |
|
$ |
705 |
|
Refined and Specialty Oils EBIT |
|
226 |
|
|
233 |
|
Milling EBIT |
|
33 |
|
|
9 |
|
Core Segment EBIT |
$ |
537 |
|
$ |
947 |
|
|
|
|
||||
Corporate and Other EBIT |
$ |
(128 |
) |
$ |
(80 |
) |
|
|
|
||||
Sugar & Bioenergy EBIT |
$ |
24 |
|
$ |
19 |
|
Non-Core Segment EBIT |
$ |
24 |
|
$ |
19 |
|
|
|
|
||||
Total Segment EBIT |
$ |
433 |
|
$ |
886 |
|
Mark-to-market timing difference |
|
182 |
|
|
(181 |
) |
Certain (gains) & charges |
|
61 |
|
|
(10 |
) |
Adjusted Total Segment EBIT |
$ |
676 |
|
$ |
695 |
|
Below is a reconciliation of Net income (loss) attributable to Bunge, to Adjusted Net income (loss) attributable to Bunge:
|
Three Months Ended
|
||||
(US$ in millions, except per share data) |
2024 |
|
2023 |
|
|
Net income (loss) attributable to Bunge |
$ |
244 |
$ |
632 |
|
Adjustment for Mark-to-market timing difference |
|
136 |
|
(128 |
) |
Adjusted for Certain (gains) and charges: |
|
|
|||
Acquisition and integration costs |
|
61 |
|
— |
|
|
|
— |
|
(8 |
) |
Adjusted Net income (loss) attributable to Bunge |
$ |
441 |
$ |
496 |
|
Weighted-average shares outstanding - diluted (a)(6) |
|
145 |
|
152 |
|
Adjusted Net income (loss) per share - diluted (6) |
$ |
3.04 |
$ |
3.26 |
|
(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 months ended March 31, 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
- Notes
| (1) | A reconciliation of Net income (loss) attributable to Bunge, to Net income (loss) is as follows: |
|
Three months ended March 31, |
||||
(US$ in millions) |
|
2024 |
|
2023 |
|
Net income (loss) attributable to Bunge |
$ |
244 |
|
$ |
632 |
EBIT attributable to noncontrolling interest |
|
2 |
|
|
25 |
Noncontrolling interest share of interest and tax |
|
6 |
|
|
2 |
Net income (loss) |
$ |
252 |
|
$ |
659 |
(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: |
|
Three months ended March 31, |
||||||
(US$ in millions) |
|
2024 |
|
|
|
2023 |
|
Cash provided by (used for) operating activities |
$ |
994 |
|
|
$ |
931 |
|
Foreign exchange gain (loss) on net debt |
|
2 |
|
|
|
50 |
|
Working capital changes |
|
(610 |
) |
|
|
(201 |
) |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests |
|
(8 |
) |
|
|
(27 |
) |
Mark-to-Market timing difference, after tax |
|
136 |
|
|
|
(128 |
) |
Adjusted FFO |
$ |
514 |
|
|
$ |
625 |
|
(5) |
We have not presented a comparable |
|
(6) |
On November 1, 2023, Bunge Global SA completed the change of its jurisdiction of incorporation of its group holding company from |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424414067/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
Source: Bunge Global SA
FAQ
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