Bunge Reports Fourth Quarter and Full-Year 2019 Results
02/12/20
Bunge Limited (NYSE: BG) today reported Q4 2019 and full-year 2019 results.
- Full-year 2019 GAAP EPS of
$(9.34) vs.$1.57 in the prior year;$4.58 vs.$2.72 on an adjusted basis - Q4 GAAP EPS of
$(0.48) vs.$(0.51) in the prior year;$1.27 vs.$0.08 on an adjusted basis - Agribusiness results driven by excellent execution and a better than expected market environment
- Food & Ingredients results benefited from improved performance in
North America andAsia , as well as favorable timing differences - Substantial progress on key priorities in 2019 - streamlined portfolio; implemented disciplined approach to risk management; improved operations and created new operating model
- Overview
Greg Heckman, Bunge's Chief Executive Officer, commented, "We finished 2019 on a strong note, driven by solid operating performance and market conditions that moved in our favor during the quarter. The improvements we've made to our business and our more rigorous approach to risk management enabled us to adapt quickly and benefit from upside opportunities.
"As we look back across 2019, our team executed well despite the complex environment and the substantial changes that are underway at Bunge. Looking ahead to 2020, we will remain nimble and prudent in order to maximize the earnings potential of our global platform, while continuing to optimize our portfolio and operations."
- Financial Highlights
Quarter Ended | Year Ended | |||||||||||||
US$ in millions, except per share data | 2019 | 2018 | 2019 | 2018 | ||||||||||
Net income (loss) attributable to Bunge | $ | (51) | $ | (65) | $ | (1,280) | $ | 267 | ||||||
Net income (loss) per common share from continuing | $ | (0.48) | $ | (0.51) | $ | (9.34) | $ | 1.57 | ||||||
Net income (loss) per common share from continuing | $ | 1.27 | $ | 0.08 | $ | 4.58 | $ | 2.72 | ||||||
Total Segment EBIT (a) | $ | 44 | $ | 70 | $ | (891) | $ | 737 | ||||||
Certain gains & (charges) (b) | (239) | (37) | (2,014) | (144) | ||||||||||
Total Segment EBIT, adjusted (a) | $ | 283 | $ | 107 | $ | 1,123 | $ | 881 | ||||||
Agribusiness (c) | $ | 177 | $ | 55 | $ | 639 | $ | 709 | ||||||
Oilseeds | $ | 41 | $ | 112 | $ | 410 | $ | 584 | ||||||
Grains | $ | 136 | $ | (57) | $ | 229 | $ | 125 | ||||||
Food & Ingredients (d) | $ | 84 | $ | 73 | $ | 287 | $ | 235 | ||||||
Sugar & Bioenergy | $ | 52 | $ | (48) | $ | 73 | $ | (105) | ||||||
Fertilizer | $ | 26 | $ | 27 | $ | 55 | $ | 42 | ||||||
Other (e) | $ | (56) | $ | — | $ | 69 | $ | — | ||||||
(a) | Total Segment earnings before interest and tax ("Total Segment EBIT"); Total Segment EBIT, adjusted; Net income (loss) per common share from continuing operations-diluted, adjusted; and Adjusted funds from operations 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. See Note 14 for a reconciliation of Cash provided by (used for) operating activities to Adjusted funds from operations. |
(b) | Comprised of certain gains & (charges) included in Total Segment EBIT which may be of interest to investors. See Additional Financial Information and notes included herein for further details. |
(c) | See Note 13 for a description of the Oilseeds and Grains businesses in Bunge's Agribusiness segment. |
(d) | Includes Edible Oil Products and Milling Products reportable segments. |
(e) | Represents amounts attributable to corporate and other items, including Bunge Ventures, not allocated to the reportable segments. |
- Fourth Quarter Results
Agribusiness
Higher segment results in the quarter reflected improved execution, particularly in managing risk throughout the Company's value chains.
In Oilseeds, softseed results improved when compared to last year due to strong oil demand. Lower soy processing results in the
In Grains, higher results were primarily driven by origination in
Edible Oil Products
Higher results in
Milling Products
Segment performance for the quarter was similar to the prior year as higher results in
Sugar & Bioenergy
Results for this segment reflect Bunge's 100 percent ownership through November 2019. In December, we completed the formation of the Brazilian Sugar and Bioenergy 50/50 joint venture with BP.
Higher results in the quarter were primarily due to improved agricultural yields and operational execution that drove lower unit costs, as well as higher ethanol pricing and higher sugar pricing and volume. Results benefited from approximately
Fertilizer
Fertilizer results in the quarter were in line with the prior year.
Cash Flow
Cash used by operations in the year ended December 31, 2019 was
Cash proceeds before customary closing adjustments of
Income Taxes
For the year ended December 31, 2019, income tax expense was
- Outlook
Taking into account the current margin environment and lack of visibility into the back half of the year, we expect full-year 2020 EPS to be broadly in line with 2019, when excluding notable items, our gain on Beyond Meat and the depreciation benefit in the Sugar & Bioenergy segment.
In Agribusiness, full-year results are expected to be down from 2019. Actual origination, processing and distribution margins will evolve based upon the fulfillment of
In Food & Ingredients, full-year results in Edible Oils and Milling are expected to be similar to the prior year, excluding approximately
In Fertilizer, full-year results are expected to be down from a particularly strong prior year and more similar to 2018.
In Sugar and Bioenergy, market fundamentals have improved vs. 2019, driven by sustained Brazilian ethanol market prospects and better sugar prices.
Additionally, the Company expects the following for 2020: an adjusted annual effective tax rate in the range of 19% to 23%; net interest expense of approximately
- Conference Call and Webcast Details
Bunge Limited's management will host a conference call at 8:00 a.m. EST on Wednesday, February 12, 2020 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.
To listen to the call, please dial 1-844-735-3666. If you are located outside
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the Company's website. Select "Q4 2019 Bunge Limited 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.
A replay of the call will be available later in the day on February 12, 2020, continuing through March 12, 2020. To listen to it, please dial 1-877-344-7529 in
- About Bunge Limited
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe. The company is headquartered in
- Website Information
We routinely post important information for investors on our website,www.bunge.com, in the "Investors" section. We