Bunge Reports Second Quarter 2020 Results
07/29/20
- Q2 GAAP EPS of
$3.47 vs.$1.43 in the prior year;$3.88 vs.$1.52 on an adjusted basis - Core Agribusiness and Food & Ingredients businesses generated strong results
- Agribusiness earnings improved on excellent execution; results also benefited from
~$380 million of timing differences related to expected Q1 reversals and new mark-to-market gains - Edible Oils performed better than expected
- Increasing full-year earnings outlook to reflect better than expected Q2
- Overview
Greg Heckman, Bunge's Chief Executive Officer, commented, "Bunge had an outstanding second quarter, with strong performance across all of our core businesses while maintaining a sharp focus on the safety of our team. Our execution against committed crush capacity and coordination of trade flows was exceptional. We realized the benefit from our risk management decisions in the first half of this year and earned new business with our focus on innovation and our collaborative approach with customers. We generated strong cash flow while being disciplined in our approach to capital allocation, and continued to execute on our key priorities. These results would be strong in any environment, let alone a pandemic, and we couldn't be more proud of the resilience and commitment of our team."
- Financial Highlights
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
US$ in millions, except per share data | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income attributable to Bunge | $ | 516 | $ | 214 | $ | 332 | $ | 259 | |||||||
Net income per common share-diluted | $ | 3.47 | $ | 1.43 | $ | 2.14 | $ | 1.71 | |||||||
Certain (gains) and charges (d) | $ | 0.44 | $ | 0.09 | $ | 0.46 | $ | 0.19 | |||||||
Adjustment of redeemable noncontrolling interest (e) | $ | (0.03) | $ | — | $ | 0.07 | $ | — | |||||||
Adjusted Net income per common share-diluted (c) | $ | 3.88 | $ | 1.52 | $ | 2.67 | $ | 1.90 | |||||||
Core Segment EBIT (a) (c) | $ | 943 | $ | 283 | $ | 885 | $ | 507 | |||||||
Certain (gains) & charges (d) | — | 4 | — | 13 | |||||||||||
Adjusted Core Segment EBIT (c) | $ | 943 | $ | 287 | $ | 885 | $ | 520 | |||||||
Corporate and Other EBIT (c) | $ | (120) | $ | 76 | $ | (182) | $ | 22 | |||||||
Certain (gains) & charges (d) | 66 | 10 | 71 | 15 | |||||||||||
Adjusted Corporate and Other EBIT (c) | $ | (54) | $ | 86 | $ | (111) | $ | 37 | |||||||
Non-core Segment EBIT (b) (c) | $ | (85) | $ | (5) | $ | (135) | $ | (24) | |||||||
Certain (gains) & charges (d) | — | 2 | — | 3 | |||||||||||
Adjusted Non-core Segment EBIT (c) | $ | (85) | $ | (3) | $ | (135) | $ | (21) | |||||||
Total Segment EBIT (c) | $ | 738 | $ | 354 | $ | 568 | $ | 505 | |||||||
Total Certain (gains) & charges (d) | 66 | $ | 16 | $ | 71 | $ | 31 | ||||||||
Adjusted Total Segment EBIT (c) | $ | 804 | $ | 370 | $ | 639 | $ | 536 | |||||||
(a) | Core Segment EBIT is comprised of the aggregate earnings before interest and tax ("EBIT") of Bunge's Agribusiness, Ediblie Oils Products, Milling Products and Fertilizer reportable segments |
(b) | Non-core Segment EBIT is comprised of Bunge's Sugar & Bioenergy reportable segment EBIT. |
(c) | Core Segment earnings before interest and tax ("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 |
(d) | Certain (gains) & charges included in Total Segment EBIT. See Additional Financial Information for detail. |
(e) | Retained earnings charge associated with an adjustment to the carrying amount of the redeemable noncontrolling interest recorded in respect of our 70% ownership interest in Loders. See Note 6 for details. |
- Second Quarter Results
Core Segments
Agribusiness | |||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||
US$ in millions, except per share data | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Volumes (in thousand metric tons) | 38,035 | 34,009 | 71,335 | 68,438 | |||||||||
Net Sales | $ | 6,810 | $ | 7,068 | $ | 13,139 | $ | 13,987 | |||||