Bunge Global SA (NYSE: BG) today reported third quarter 2024
results
- Q3 GAAP diluted EPS of $1.56 vs. $2.47 in the prior year;
$2.29 vs. $2.99 on an adjusted basis excluding certain
gains/charges and mark-to-market timing differences
- Solid performances in Agribusiness and Refined and Specialty
Oils; however, results were down from the prior year reflecting the
current global margin environment
- Continued to advance Viterra integration planning and other
growth priorities, including closing the sale of the sugar &
bioenergy joint venture
- Repurchased $200 million of common shares during Q3,
bringing the YTD total to $600 million
- Adjusted full-year EPS outlook now expected to be at least
$9.25
Greg Heckman, Bunge’s Chief Executive Officer, commented, “Our
team delivered a strong third quarter, staying nimble and
leveraging our global platform to capture opportunities against
shifting market dynamics around the world. We made progress on key
priorities, including closing the sale of the BP Bunge Bioenergia
joint venture and delivering value to our shareholders through
share repurchases. At the same time, we continued to advance
integration planning for our announced combination with Viterra,
and have made progress toward the remaining regulatory
approvals.
“The third quarter has again proven the value of our global
footprint, operating model and approach, which underscores the
benefit of further diversification across geographies and crops
that our combination with Viterra will bring.”
Three Months Ended
September 30,
Nine Months Ended
September 30,
(US$ in millions, except per share
data)
2024
2023
2024
2023
Net income attributable to
Bunge
$
221
$
373
$
535
$
1,627
Net income per share-diluted
(6)
$
1.56
$
2.47
$
3.73
$
10.71
Mark-to-market timing differences (a)
$
0.16
$
0.14
$
1.91
$
(1.29
)
Certain (gains) & charges (b)
$
0.57
$
0.38
$
1.42
$
0.55
Adjusted Net income per share-diluted
(c)(6)
$
2.29
$
2.99
$
7.06
$
9.97
Core Segment EBIT (c) (d)
$
539
$
711
$
1,437
$
2,674
Mark-to-market timing differences (a)
3
34
343
(261
)
Certain (gains) & charges (b)
19
(10
)
19
(29
)
Adjusted Core Segment EBIT (c)
$
561
$
735
$
1,799
$
2,384
Corporate and Other EBIT (c)
$
(138
)
$
(182
)
$
(421
)
$
(417
)
Certain (gains) & charges (b)
62
68
185
102
Adjusted Corporate and Other EBIT
(c)
$
(76
)
$
(114
)
$
(236
)
$
(315
)
Non-core Segment EBIT (c) (e)
$
6
$
55
$
9
$
125
Certain (gains) & charges (b)
—
—
—
—
Adjusted Non-core Segment EBIT
(c)
$
6
$
55
$
9
$
125
Total Segment EBIT (c)
$
407
$
584
$
1,025
$
2,382
Mark-to-market timing differences (a)
3
34
343
(261
)
Certain (gains) & charges (b)
81
58
204
73
Adjusted Total Segment EBIT (c)
$
491
$
676
$
1,572
$
2,194
(a)
Mark-to-market timing impact of
certain commodity and freight contracts, readily marketable
inventories ("RMI"), 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. Further, on October 1, 2024, the transaction
closed in accordance with the terms of the share purchase
agreement.
Core Segments
Agribusiness
Three Months Ended
Nine Months Ended
(US$ in millions, except per share
data)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Volumes (in thousand metric
tons)
19,892
18,854
60,663
55,497
Net Sales
$
9,292
$
10,082
$
28,689
$
31,809
Gross Profit
$
392
$
645
$
1,135
$
2,450
Selling, general and administrative
expense
$
(147
)
$
(145
)
$
(452
)
$
(428
)
Foreign exchange (losses) gains –
net
$
20
$
(52
)
$
(81
)
$
(77
)
EBIT attributable to noncontrolling
interests
$
4
$
(9
)
$
14
$
(29
)
Other income (expense) - net
$
79
$
36
$
188
$
54
Income (loss) from affiliates
$
(26
)
$
(14
)
$
(66
)
$
(19
)
Segment EBIT
$
322
$
461
$
738
$
1,951
Mark-to-market timing differences
25
21
394
(264
)
Certain (gains) & charges
19
(10
)
19
(29
)
Adjusted Segment EBIT
$
366
$
472
$
1,151
$
1,658
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
19
$
(9
)
$
19
$
(25
)
Certain (gains) & charges, Earnings
per share
$
0.13
$
(0.06
)
$
0.13
$
(0.17
)
Processing (2)
Three Months Ended
Nine Months Ended
(US$ in millions)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Processing EBIT
$
219
$
430
$
521
$
1,653
Mark-to-market timing differences
53
(2
)
427
(281
)
Certain (gains) & charges
19
(4
)
19
(18
)
Adjusted Processing EBIT
$
291
$
424
$
967
$
1,354
Higher results in South America and Europe soy crush were more
than offset by lower results in North America, Asia and Europe
softseeds.
Merchandising (2)
Three Months Ended
Nine Months Ended
(US$ in millions)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Merchandising EBIT
$
103
$
31
$
217
$
298
Mark-to-market timing differences
(28
)
23
(33
)
17
Certain (gains) & charges
—
(6
)
—
(11
)
Adjusted Merchandising EBIT
$
75
$
48
$
184
$
304
Higher results were driven by improved performance in our
financial services, ocean freight and global oils businesses more
than offsetting lower results in global grains.
Refined & Specialty Oils
Three Months Ended
Nine Months Ended
(US$ in millions, except per share
data)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Volumes (in thousand metric
tons)
2,334
2,278
6,829
6,636
Net Sales
$
3,158
$
3,601
$
9,519
$
11,090
Gross Profit
$
338
$
352
$
1,012
$
1,027
Selling, general and administrative
expense
$
(103
)
$
(98
)
$
(303
)
$
(291
)
Foreign exchange (losses) gains –
net
$
(8
)
$
(2
)
$
(21
)
$
8
EBIT attributable to noncontrolling
interests
$
(13
)
$
(6
)
$
(31
)
$
(17
)
Other income (expense) - net
$
(14
)
$
(19
)
$
(46
)
$
(50
)
Segment EBIT
$
200
$
227
$
611
$
677
Mark-to-market timing differences
(18
)
3
(32
)
(6
)
Certain (gains) & charges
—
—
—
—
Adjusted Segment EBIT
$
182
$
230
$
579
$
671
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. Results in Europe were in line with last
year.
Milling
Three Months Ended
Nine Months Ended
(US$ in millions, except per share
data)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Volumes (in thousand metric
tons)
961
890
2,806
2,555
Net Sales
$
407
$
479
$
1,189
$
1,484
Gross Profit
$
43
$
50
$
169
$
121
Selling, general and administrative
expense
$
(25
)
$
(25
)
$
(74
)
$
(70
)
Other income (expense) - net
$
(1
)
$
(2
)
$
(4
)
$
(5
)
Segment EBIT
$
17
$
23
$
88
$
46
Mark-to-market timing differences
(4
)
10
(19
)
9
Certain (gains) & charges
—
—
—
—
Adjusted Segment EBIT
$
13
$
33
$
69
$
55
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
$
—
$
—
Milling Summary
Slightly higher results in North America were more than offset
by lower results in South America where high raw material costs
pressured margins.
Corporate and Other
Three Months Ended
Nine Months Ended
(US$ in millions, except per share
data)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Gross Profit
$
(2
)
$
(4
)
$
(7
)
$
(11
)
Selling, general and administrative
expense
$
(161
)
$
(178
)
$
(494
)
$
(430
)
Foreign exchange (losses) gains –
net
$
2
$
6
$
3
$
5
Other income (expense) - net
$
23
$
(7
)
$
74
$
34
Income (loss) from affiliates
$
—
$
—
$
1
$
(17
)
Corporate and Other EBIT
$
(138
)
$
(182
)
$
(421
)
$
(417
)
Certain (gains) & charges
62
68
185
102
Adjusted Corporate and Other
EBIT
$
(76
)
$
(114
)
$
(236
)
$
(315
)
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
62
$
67
$
185
$
109
Certain (gains) & charges, Earnings
per share
$
0.44
$
0.44
$
1.29
$
0.72
Corporate
Three Months Ended
Nine Months Ended
(US$ in millions)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Corporate EBIT
$
(154
)
$
(155
)
$
(462
)
$
(381
)
Certain (gains) & charges
62
48
185
66
Adjusted Corporate EBIT
$
(92
)
$
(107
)
$
(277
)
$
(315
)
Other
Three Months Ended
Nine Months Ended
(US$ in millions)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Other EBIT
$
16
$
(27
)
$
41
$
(36
)
Certain (gains) & charges
—
20
—
36
Adjusted Other EBIT
$
16
$
(7
)
$
41
$
—
Corporate and Other Summary
The decrease in Corporate expenses was primarily driven by lower
performance-based compensation. Higher Other results were related
to Bunge Ventures and our captive insurance program.
Non-core Segments
Sugar & Bioenergy
Three Months Ended
Nine Months Ended
(US$ in millions, except per share
data)
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
Sep 30, 2023
Net Sales
$
38
$
56
$
130
$
192
Gross Profit
$
1
$
2
$
3
$
4
Income (loss) from affiliates
$
6
$
53
$
8
$
119
Segment EBIT
$
6
$
55
$
9
$
125
Certain (gains) & charges
—
—
—
—
Adjusted Segment EBIT
$
6
$
55
$
9
$
125
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
$
—
$
—
Sugar & Bioenergy Summary
Higher sugar and ethanol volumes were more than offset by higher
operating costs and lower ethanol prices. Lower results also
reflected foreign exchange translation losses on U.S. dollar
denominated debt in the quarter compared to translation gains in
the prior year.
Cash Flow
Nine Months Ended
Sep 30, 2024
Sep 30, 2023
Cash provided by (used for) operating
activities
$
847
$
1,860
Certain reconciling items to Adjusted
funds from operations (4)
436
75
Adjusted funds from operations (4)
$
1,283
$
1,935
Cash provided by operations in the nine months ended September
30, 2024 was $847 million compared to $1,860 million in the same
period last year. The reduction of cash from operations was
primarily driven by lower reported net income. Adjusted funds from
operations (FFO) was $1,283 million compared to $1,935 million in
the prior year.(4)
Income Taxes
For the nine months ended September 30, 2024, income tax expense
was $236 million compared to $495 million in the prior year. The
decrease was primarily due to lower pre-tax income in 2024.
Taking into account year-to-date results, the current margin
environment and forward curves, and the loss of income due to the
sale of our ownership in the sugar & bioenergy joint venture,
we now expect full-year 2024 adjusted EPS to be at least $9.25.
In Agribusiness, full-year results are forecasted to be up
slightly from our previous outlook, reflecting the better than
expected third quarter, but down compared to last year.
In Refined and Specialty Oils, full-year results are expected to
be up from our previous outlook, but down compared to last year’s
record performance.
In Milling, full-year results are expected to be down from our
previous outlook reflecting the lower than expected third quarter,
but 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 are expected to be down
considerably from our previous outlook due to the lower than
expected third quarter and the loss of income from the sale of our
ownership in the joint venture, which closed on October 1,
2024.
Additionally, the Company currently expects the following for
2024: an adjusted annual effective tax rate range of 22% to 24%;
net interest expense in the range of $285 to $305 million; capital
expenditures in the upper end of 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, October 30, 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 “Q3 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
October 30, 2024, continuing through November 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 3084987.
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, wars 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 September 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 September
30,
2024
2023
2024
2023
2024
2023
Core Segments:
$
(19
)
$
9
$
(0.13
)
$
0.06
$
(19
)
$
10
Agribusiness
$
(19
)
$
9
$
(0.13
)
$
0.06
$
(19
)
$
10
Impairment of equity method investment
(19
)
—
(0.13
)
—
(19
)
—
Ukraine-Russia War
—
9
—
0.06
—
10
Refined and Specialty Oils
$
—
$
—
$
—
$
—
$
—
$
—
Milling
$
—
$
—
$
—
$
—
$
—
$
—
Corporate and Other:
$
(62
)
$
(67
)
$
(0.44
)
$
(0.44
)
$
(62
)
$
(68
)
Acquisition and integration costs
(62
)
(47
)
(0.44
)
(0.31
)
(62
)
(48
)
Impairment of equity method and other
investments
—
(20
)
—
(0.13
)
—
(20
)
Non-core Segment:
$
—
$
—
$
—
$
—
$
—
$
—
Sugar & Bioenergy
$
—
$
—
$
—
$
—
$
—
$
—
Total
$
(81
)
$
(58
)
$
(0.57
)
$
(0.38
)
$
(81
)
$
(58
)
See Definition and Reconciliation of
Non-GAAP Measures.
Core Segments
Agribusiness
EBIT for the three months ended September 30, 2024 included a
$19 million impairment charge, in Income (loss) from affiliates,
related to a minority investment in North America.
EBIT for the three months ended September 30, 2023 included a
mark-to-market gain of $10 million, in Cost of goods sold, related
to inventory recovered from our Mykolaiv and other facilities in
Ukraine. The circumstances allowing for recovery of these
inventories did not exist and were unforeseeable when the inventory
reserves were initially recorded in 2022 in conjunction with the
Ukraine-Russia war.
Corporate and Other
The following is a summary of acquisition and integration costs
related to the announced business combination agreement with
Viterra recorded in the Company's Condensed Consolidated Statements
of Income (Loss).
Three Months Ended
(US$ in millions)
Sep 30, 2024
Sep 30, 2023
Cost of goods sold
$
(5
)
$
—
Selling, general and administrative
expenses
(57
)
(48
)
Interest expense
(5
)
(1
)
Income tax (expense) benefit
5
2
Net income (loss)
$
(62
)
$
(47
)
EBIT for the three months ended September 30, 2023 included a
$20 million impairment charge, in Other Income (expense) - net,
related to the full impairment of a long-term investment held in
Other non-current assets.
Certain gains and (charges), year-to-date
The following table provides a summary of certain gains and
(charges) that may be of interest to investors, including a
description of these items and their effect on Net income (loss)
attributable to Bunge, Earnings per share diluted and Segment EBIT
for the nine month periods ended September 30, 2024 and 2023.
(US$ in millions, except per share
data)
Net Income (Loss)
Attributable to
Bunge
Earnings
Per Share
Diluted (6)
Segment
EBIT
Nine months ended September 30,
2024
2023
2024
2023
2024
2023
Core Segments:
$
(19
)
$
25
$
(0.13
)
$
0.17
$
(19
)
$
29
Agribusiness
$
(19
)
$
25
$
(0.13
)
$
0.17
$
(19
)
$
29
Impairment of equity method investment
(19
)
—
(0.13
)
—
(19
)
—
Ukraine-Russia War
—
25
—
0.17
—
29
Refined and Specialty Oils
$
—
$
—
$
—
$
—
$
—
$
—
Milling
$
—
$
—
$
—
$
—
$
—
$
—
Corporate and Other:
$
(185
)
$
(109
)
$
(1.29
)
$
(0.72
)
$
(185
)
$
(102
)
Acquisition and integration costs
(185
)
(73
)
(1.29
)
(0.48
)
(185
)
(66
)
Impairment of equity method and other
investments
—
(36
)
—
(0.24
)
—
(36
)
Non-core Segment:
$
—
$
—
$
—
$
—
$
—
$
—
Sugar & Bioenergy
$
—
$
—
$
—
$
—
$
—
$
—
Total
$
(204
)
$
(84
)
$
(1.42
)
$
(0.55
)
$
(204
)
$
(73
)
Core Segments
Agribusiness
EBIT for the nine months ended September 30, 2024 included a $19
million impairment charge, in Income (loss) from affiliates,
related to a minority investment in North America.
EBIT for the nine months ended September 30, 2023 included a
mark-to-market gain of $29 million, in Cost of goods sold, related
to inventory recovered from our Mykolaiv and other facilities in
Ukraine. The circumstances allowing for recovery of these
inventories did not exist and were unforeseeable when the inventory
reserves were initially recorded in 2022 in conjunction with the
Ukraine-Russia war.
Corporate and Other
The following is a summary of acquisition and integration costs
related to the announced business combination agreement with
Viterra recorded in the Company's Condensed Consolidated Statements
of Income (Loss).
Nine Months Ended
(US$ in millions)
Sep 30, 2024
Sep 30, 2023
Cost of goods sold
$
(5
)
$
—
Selling, general and administrative
expenses
(180
)
(66
)
Interest expense
(13
)
(12
)
Income tax (expense) benefit
13
5
Net income (loss)
$
(185
)
$
(73
)
EBIT for the nine months ended September 30, 2023 included a $20
million impairment charge, in Other Income (expense) - net, related
to the full impairment of a long-term investment held in Other
non-current assets.
EBIT for the nine months ended September 30, 2023 included a $16
million impairment charge, in Income (loss) from affiliates,
related to a minority investment in Australian Plant Proteins, a
start-up manufacturer of novel protein ingredients.
- Consolidated Earnings Data (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(US$ in millions, except per share
data)
2024
2023
2024
2023
Net sales
$
12,908
$
14,227
$
39,566
$
44,604
Cost of goods sold
(12,136
)
(13,182
)
(37,254
)
(41,013
)
Gross profit
772
1,045
2,312
3,591
Selling, general and administrative
expenses
(437
)
(447
)
(1,325
)
(1,220
)
Foreign exchange (losses) gains – net
14
(47
)
(101
)
(64
)
Other income (expense) – net
87
8
212
35
Income (loss) from affiliates
(20
)
39
(58
)
83
EBIT attributable to noncontrolling
interest (a) (1)
(9
)
(14
)
(15
)
(43
)
Total Segment EBIT
407
584
1,025
2,382
Interest income
33
38
112
121
Interest expense
(127
)
(133
)
(358
)
(374
)
Income tax (expense) benefit
(89
)
(114
)
(236
)
(495
)
Noncontrolling interest share of interest
and tax (a) (1)
(3
)
(2
)
(8
)
(7
)
Net income (loss) attributable to Bunge
(1)
$
221
$
373
$
535
$
1,627
Net income (loss) attributable to Bunge
shareholders - diluted (6)
$
1.56
$
2.47
$
3.73
$
10.71
Weighted–average shares outstanding -
diluted (6)
142
151
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)
September 30,
December 31,
(US$ in millions)
2024
2023
Assets
Cash and cash equivalents
$
2,836
$
2,602
Trade accounts receivable, net
2,100
2,592
Inventories (a)
7,465
7,105
Other current assets
3,518
4,051
Total current assets
15,919
16,350
Property, plant and equipment, net
5,115
4,541
Operating lease assets
937
926
Goodwill and other intangible assets,
net
840
887
Investments in affiliates
1,136
1,280
Other non-current assets
1,320
1,388
Total assets
$
25,267
$
25,372
Liabilities and Equity
Short-term debt
$
755
$
797
Current portion of long-term debt
663
5
Trade accounts payable
3,211
3,664
Current operating lease obligations
288
308
Other current liabilities
2,774
2,913
Total current liabilities
7,691
7,687
Long-term debt
4,777
4,080
Non-current operating lease
obligations
595
566
Other non-current liabilities
1,046
1,224
Total liabilities
14,109
13,557
Redeemable noncontrolling
interest
2
1
Total equity
11,156
11,814
Total liabilities, redeemable
noncontrolling interest and equity
$
25,267
$
25,372
(a) Includes RMI of $6,195 million and
$5,837 million at September 30, 2024 and December 31, 2023,
respectively. Of the total RMI, $4,759 million and $4,242 million
can be attributable to merchandising activities at September 30,
2024 and December 31, 2023, respectively.
- Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(US$ in millions)
2024
2023
Operating Activities
Net income (loss) (1)
$
558
$
1,677
Adjustments to reconcile net income (loss)
to cash provided by (used for) operating activities:
Impairment charges
36
56
Foreign exchange (gain) loss on net
debt
39
(151
)
Depreciation, depletion and
amortization
345
317
Share-based compensation expense
49
51
Deferred income tax expense (benefit)
(43
)
115
Results from affiliates
39
(100
)
Other, net
48
65
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
Trade accounts receivable
382
306
Inventories
(557
)
933
Secured advances to suppliers
146
(228
)
Trade accounts payable and accrued
liabilities
(386
)
(690
)
Advances on sales
(179
)
(227
)
Net unrealized (gain) loss on derivative
contracts
533
(247
)
Margin deposits
(152
)
(111
)
Recoverable and income taxes, net
(148
)
(19
)
Marketable securities
7
(17
)
Other, net
130
130
Cash provided by (used for) operating
activities
847
1,860
Investing Activities
Payments made for capital expenditures
(887
)
(805
)
Proceeds from investments
739
21
Payments for investments
(872
)
(26
)
Settlement of net investment hedges
(4
)
(57
)
Proceeds from beneficial interest in
securitized trade receivables
—
85
Proceeds from sales of businesses and
property, plant and equipment
6
165
Proceeds from investments in
affiliates
103
—
Payments for investments in affiliates
(23
)
(136
)
Other, net
(19
)
107
Cash provided by (used for) investing
activities
(957
)
(646
)
Financing Activities
Net borrowings (repayments) of short-term
debt
(6
)
416
Net proceeds (repayments) of long-term
debt
1,284
121
Debt issuance costs
(24
)
(25
)
Repurchases of registered or common
shares
(600
)
(466
)
Dividends paid to registered or common
shareholders
(287
)
(287
)
Contributions from (Return of capital to)
noncontrolling interest
41
40
Other, net
(32
)
(12
)
Cash provided by (used for) financing
activities
376
(213
)
Effect of exchange rate changes on cash
and cash equivalents, and restricted cash
—
40
Net increase (decrease) in cash and
cash equivalents, and restricted cash
266
1,041
Cash and cash equivalents, and
restricted cash - beginning of period
2,623
1,152
Cash and cash equivalents, and
restricted cash - end of period
$
2,889
$
2,193
- 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. Bunge's management believes
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
September 30,
Nine Months Ended
September 30,
(US$ in millions)
2024
2023
2024
2023
Net income (loss) attributable to
Bunge
$
221
$
373
$
535
$
1,627
Interest income
(33
)
(38
)
(112
)
(121
)
Interest expense
127
133
358
374
Income tax expense (benefit)
89
114
236
495
Noncontrolling interest share of interest
and tax
3
2
8
7
Total Segment EBIT
$
407
$
584
$
1,025
$
2,382
Agribusiness EBIT
$
322
$
461
$
738
$
1,951
Refined and Specialty Oils EBIT
200
227
611
$
677
Milling EBIT
17
23
88
$
46
Core Segment EBIT
$
539
$
711
$
1,437
$
2,674
Corporate and Other EBIT
$
(138
)
$
(182
)
$
(421
)
$
(417
)
Sugar & Bioenergy EBIT
$
6
$
55
$
9
$
125
Non-Core Segment EBIT
$
6
$
55
$
9
$
125
Total Segment EBIT
$
407
$
584
$
1,025
$
2,382
Mark-to-market timing difference
3
34
343
(261
)
Certain (gains) & charges
81
58
204
73
Adjusted Total Segment EBIT
$
491
$
676
$
1,572
$
2,194
Below is a reconciliation of Net income (loss) attributable to
Bunge, to Adjusted Net income (loss) attributable to Bunge:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(US$ in millions, except per share
data)
2024
2023
2024
2023
Net income (loss) attributable to
Bunge
$
221
$
373
$
535
$
1,627
Adjustment for Mark-to-market timing
difference
22
21
274
(196
)
Adjusted for Certain (gains) and
charges:
Acquisition and integration costs
62
47
185
73
Impairment of equity method and other
investments
19
20
19
36
Ukraine-Russia war
—
(9
)
—
(25
)
Adjusted Net income (loss) attributable
to Bunge (a)
$
324
$
452
$
1,013
$
1,515
Weighted-average shares outstanding -
diluted (b)(6)
142
151
144
152
Adjusted Net income (loss) per share -
diluted (6)
$
2.29
$
2.99
$
7.06
$
9.97
(a) As of July 1, 2024, Bunge changed its
methodology for calculating non-GAAP interim period Adjusted
Effective Tax Rate (“Adjusted ETR”). This change has no impact on
Bunge’s methodology for calculating the non-GAAP forecasted and
actual annual Adjusted ETR. Management believes the new methodology
is better aligned to the interim period US GAAP ETR calculation,
and represents an improvement over the prior method, which
calculated tax on items excluded from Adjusted Net Income (loss)
attributable to Bunge on a discrete basis in each interim period.
The cumulative YTD impact of the methodology change through June
30, 2024 was $19 million and is included in Adjusted Net income
(loss) attributable to Bunge for the three months ended September
30, 2024.
(b) 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 nine months ended September 30, 2024 and
2023.
Adjusted Annual Effective Tax Rate
Adjusted Annual Effective Tax Rate is calculated as projected
Income tax expense for 2024 adjusted for projected income tax
related to certain gains and charges and mark-to-market timing
differences divided by projected income before income taxes
adjusted by these same excluded items. This information is provided
only on a non-GAAP basis without reconciliation to the projected
Annual Effective Tax Rate, the most directly comparable U.S. GAAP
measure, due to the inability to quantify the amounts necessary to
calculate projected net income per share, as described above. The
information necessary to prepare the comparable U.S. GAAP
presentation could result in significant adjustments from Adjusted
Annual Effective Tax Rate. The Adjusted Annual Effective Tax Rate
is used by management and can be useful to investors to review the
Company's consolidated effective tax rate on a consistent
basis.
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 September
30,
Nine months ended September
30,
(US$ in millions)
2024
2023
2024
2023
Net income (loss) attributable to
Bunge
$
221
$
373
$
535
$
1,627
EBIT attributable to noncontrolling
interest
9
14
15
43
Noncontrolling interest share of interest
and tax
3
2
8
7
Net income (loss)
$
233
$
389
$
558
$
1,677
(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, 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:
Nine months ended September
30,
(US$ in millions)
2024
2023
Cash provided by (used for) operating
activities
$
847
$
1,860
Foreign exchange gain (loss) on net
debt
(39
)
151
Working capital changes
224
170
Net (income) loss attributable to
noncontrolling interests and redeemable noncontrolling
interests
(23
)
(50
)
Mark-to-Market timing difference, after
tax
274
(196
)
Adjusted FFO
$
1,283
$
1,935
(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/20241030566569/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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