Bunge Reports Fourth Quarter and Full-Year 2020 Results  

Rhea-AI Summary

Bunge Limited (NYSE:BG) reported robust financial results for Q4 and full-year 2020. The company achieved a full-year GAAP EPS of $7.71, a significant recovery from $(9.34) the previous year, while Q4 GAAP EPS reached $3.74 versus $(0.48) in 2019. Strong performance in Agribusiness and Edible Oils contributed to a full-year adjusted funds from operations of approximately $1.9 billion, up $800 million year-over-year. The favorable market environment is expected to continue into 2021, driven by strong demand and tight supplies, according to CEO Greg Heckman.

Positive

• Full-year GAAP EPS reached $7.71 vs. $(9.34) in 2019.
• Q4 GAAP EPS of $3.74 contrasted with $(0.48) from the previous year.
• Adjusted funds from operations of ~$1.9 billion, up ~$800 million from 2019.
• Strong performance in Agribusiness and Edible Oils segments.

Negative

• Lower origination volumes in South America reduced earnings in Grains.

Bunge Limited (NYSE:BG) today reported fourth quarter and full-year 2020 results.

• Full-year GAAP EPS of $7.71 vs. $(9.34) in the prior year; $8.30 vs. $4.76 on an adjusted basis excluding certain gains and charges and mark-to-market timing differences
• Q4 GAAP EPS of $3.74 vs. $(0.48) in the prior year; $3.05 vs. $1.69 on an adjusted basis excluding certain gains and charges and mark-to-market timing differences
• Excellent execution throughout the value chains drove higher Q4 and full year results in Agribusiness and Edible Oils
• Full year adjusted funds from operations of ~$1.9 billion, up ~$800 million vs. 2019
• Favorable market environment continuing into 2021

Overview

Greg Heckman, Bunge’s Chief Executive Officer, commented, “Our performance in 2020 was exceptional reflecting the earnings strength of our platform. Our talented team and new operating model allowed us to capture the upside from market opportunities and deepen customer partnerships. We delivered these strong results while completing the portfolio actions we originally identified, sharpening our financial discipline, and, importantly, keeping the focus on protecting the safety of our team during these unprecedented times.

“Looking ahead, we expect the favorable market environment to continue into 2021, reflecting strong and growing demand, as well as tight supplies. We are excited about our momentum and the opportunities ahead of us,” Mr. Heckman continued. “I am extremely proud of our team across all the businesses as we execute our strategy and deliver value to all our stakeholders.”

Financial Highlights

	Quarter Ended December 31,									Year Ended December 31,
US$ in millions, except per share data	2020				2019					2020				2019
Net income attributable to Bunge	$	551			$	(51	)			$	1,145			(1,280		)
Net income per common share-diluted	$	3.74			$	(0.48	)			$	7.71			$	(9.34	)
Mark-to-market timing differences (a)	$	(0.05	)		$	0.42				$	0.92			$	0.18
Certain (gains) and charges (b)	$	(0.59	)		$	1.60				$	(0.27	)		$	13.10
Dilutive share basis difference - GAAP vs Adjusted (c)	$	—			$	0.09				$	—			$	0.76
Adjustment of redeemable noncontrolling interest (d)	$	(0.05	)		$	0.06				$	(0.06	)		$	0.06
Adjusted Net income per common share-diluted (e)	$	3.05			$	1.69				$	8.30			$	4.76
Core Segment EBIT (e) (f)	$	780			$	244				$	2,085			$	953
Mark-to-market timing differences (a)	4				82					190				35
Certain (gains) & charges (b)	(147		)		141					(147		)		264
Adjusted Core Segment EBIT (e)	$	637			$	467				$	2,128			$	1,252
Corporate and Other EBIT (e)	$	(91	)		$	(168	)			$	(365	)		$	(245	)
Certain (gains) & charges (b)	12				13					83				58
Adjusted Corporate and Other EBIT (e)	$	(79	)		$	(155	)			$	(282	)		$	(187	)
Non-core Segment EBIT (e) (g)	$	25			$	(32	)			$	(87	)		$	(1,599	)
Certain (gains) & charges (b)	—				85					—				1,692
Adjusted Non-core Segment EBIT (e)	$	25			$	53				$	(87	)		$	93
Total Segment EBIT (e)	$	714			$	44				$	1,633			$	(891	)
Total Mark-to-market timing differences (a)	4				82					190				35
Total Certain (gains) & charges (b)	(135		)		239					(64		)		2,014
Adjusted Total Segment EBIT (e)	$	583			$	365				$	1,759			$	1,158

(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)		Dilutive share basis difference - GAAP vs. Adjusted represents the impact of using different weighted-average common shares outstanding in the denominators of the respective GAAP and Adjusted EPS calculations. See note 4 in the Additional Financial information section of this release for details.
(d)		Retained earnings impact associated with an adjustment to the carrying amount of the redeemable noncontrolling interest recorded in respect of our 70% ownership in Bunge Loders Croklaan (Loders). See note 5 in the Additional Financial information section of this release for details.
(e)		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.
(f)		Core Segment earnings before interest and tax ("Core Segment EBIT") comprises the aggregate earnings before interest and tax (“EBIT”) of Bunge’s Agribusiness, Edible Oils Products, Milling Products and Fertilizer reportable segments, and excludes Bunge's Sugar & Bioenergy reportable segment and Corporate and Other activities.
(g)		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.

Fourth Quarter and Full-Year 2020 Results

 

Core Segments
Agribusiness
		Quarter Ended												Year Ended
US$ in millions, except volumes and per share data		Dec 31, 2020					Dec 31, 2019							Dec 31, 2020					Dec 31, 2019
Volumes (in thousand metric tons)		35,737					34,976							142,959					139,968
Net Sales		$	9,282				$	7,412						$	29,529				$	28,407
Gross Profit		$	551				$	302						$	1,780				$	1,093
Selling, general and administrative expense		$	(150	)			$	(136	)					$	(517	)			$	(487	)
Foreign exchange gains (losses)		$	72				$	42						$	148				$	(34	)
EBIT attributable to noncontrolling interests		$	(12	)			$	(2	)					$	(18	)			$	2
Other income (expense) - net		$	3				$	—						$	43				$	65
Income (loss) from affiliates		$	3				$	19						$	46				$	43
Segment EBIT		$	467				$	225						$	1,482				$	682
Mark-to-market timing differences		7					95							182					48
Certain (gains) & charges		—					15							—					117
Adjusted Segment EBIT		$	474				$	335						$	1,664				$	847
Certain (gains) & charges, Net Income (Loss) Attributable to Bunge		$	—				$	11						$	—				$	106
Certain (gains) & charges, Earnings Per Share		$	—				$	0.07						$	—				$	0.70

 

Oilseeds (2)
	Quarter Ended								Year Ended
US$ in millions	Dec 31, 2020				Dec 31, 2019				Dec 31, 2020				Dec 31, 2019
Oilseeds EBIT	$	233			$	66			$	855			$	415
Mark-to-market timing differences	42				95				196				48
Certain (gains) & charges	—				9				—				86
Adjusted Oilseed EBIT	$	275			$	170			$	1,051			$	549

In Oilseeds, higher results were primarily driven by softseed processing where earnings were higher in all regions supported by strong vegetable oil demand. Soy processing results were in line with the prior year as improvements in North America and Asia were offset by South America and Europe.

 

Grains (2)
				Quarter Ended											Year Ended
US$ in millions				Dec 31, 2020					Dec 31, 2019						Dec 31, 2020					Dec 31, 2019
Grains EBIT				$	234				$	159					$	627				$	267
Mark-to-market timing differences				(35		)			—						(14		)			—
Certain (gains) & charges				—					6						—					31
Adjusted Grains EBIT				$	199				$	165					$	613				$	298

In Grains, higher results were primarily driven by our North American operations, which benefited from strong export demand and execution. Results also benefited from favorable risk management and optimization in our global trading and distribution business. In South America, earnings decreased largely due to lower origination volumes as farmers had accelerated sales earlier in the year.

 

Edible Oil Products
		Quarter Ended														Year Ended
US$ in millions, except volumes and per share data		Dec 31, 2020						Dec 31, 2019								Dec 31, 2020						Dec 31, 2019
Volumes (in thousand metric tons)		2,414						2,507								9,515						9,606
Net Sales		$	2,715					$	2,422							$	9,601					$	9,186
Gross Profit		$	287					$	162							$	738					$	612
Selling, general and administrative expense		$	(110	)				$	(114	)						$	(388	)				$	(376	)
Foreign exchange gains (losses)		$	(2	)				$	(5	)						$	(2	)				$	(1	)
EBIT attributable to noncontrolling interests		$	(6	)				$	20							$	(3	)				$	7
Other income (expense) - net		$	98					$	(103	)						$	95					$	(121	)

FAQ

What were Bunge's Q4 2020 earnings results?

Bunge reported Q4 2020 GAAP EPS of $3.74 compared to $(0.48) in Q4 2019.

How did Bunge perform financially in full-year 2020?

Bunge achieved a full-year GAAP EPS of $7.71, a substantial improvement from $(9.34) in 2019.

What contributed to Bunge's financial success in 2020?

Higher performance in Agribusiness and Edible Oils, along with favorable market conditions, contributed to Bunge's financial success.

What are the future expectations for Bunge in 2021?

Bunge expects a favorable market environment to continue into 2021, driven by strong demand and tight supplies.

What is Bunge's adjusted funds from operations in 2020?

Bunge's adjusted funds from operations for 2020 totaled approximately $1.9 billion, up $800 million from 2019.