Bunge Reports First Quarter 2023 Results
05/03/23
- Q1 GAAP diluted EPS of
$4.15 vs.$4.48 in the prior year;$3.26 vs.$4.26 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences - Agribusiness performed well, though results were down from last year's particularly strong performance
- Refined and Specialty Oils results were higher in all regions reflecting favorable demand trends and effective management of supply chains
- Announced targeted actions to further improve footprint, enhance business capabilities and drive growth
- Continue to expect full-year 2023 adjusted EPS of at least
$11 per share
Overview
Greg Heckman, Bunge’s Chief Executive Officer, commented, “Our team delivered a strong first quarter through focused execution in a highly dynamic environment. Our operating approach enabled us to continue helping our customers at both ends of the value chain to navigate critical challenges amidst fluctuations in global supplies and consumer behavior.
“Bunge is investing in innovation and resources to support both farmers and end customers. During the first quarter, we announced targeted but important actions to further improve our business capabilities, including entering collaborations to develop next generation seeds to meet the growing need for more sustainable crops, launching regenerative agriculture programs and acquiring a state-of-the art vegetable oil refinery in the
Financial Highlights
| Three Months Ended March 31, | |||||
(US$ in millions, except per share data) |
| 2023 |
|
| 2022 |
|
Net income attributable to Bunge | $ | 632 |
| $ | 688 |
|
Net income per common share-diluted | $ | 4.15 |
| $ | 4.48 |
|
|
|
| ||||
Mark-to-market timing differences (a) | $ | (0.84 | ) | $ | (0.40 | ) |
Certain (gains) and charges (b) | $ | (0.05 | ) | $ | 0.18 |
|
Adjusted Net income per common share-diluted (c) | $ | 3.26 |
| $ | 4.26 |
|
|
|
| ||||
Core Segment EBIT (c) (d) | $ | 947 |
| $ | 922 |
|
Mark-to-market timing differences (a) |
| (181 | ) |
| (76 | ) |
Certain (gains) & charges (b) |
| (10 | ) |
| 12 |
|
Adjusted Core Segment EBIT (c) | $ | 756 |
| $ | 858 |
|
|
|
| ||||
Corporate and Other EBIT (c) | $ | (80 | ) | $ | (63 | ) |
Certain (gains) & charges (b) |
| — |
|
| (29 | ) |
Adjusted Corporate and Other EBIT (c) | $ | (80 | ) | $ | (92 | ) |
|
|
| ||||
Non-core Segment EBIT (c) (e) | $ | 19 |
| $ | 34 |
|
Certain (gains) & charges (b) |
| — |
|
| — |
|
Adjusted Non-core Segment EBIT (c) | $ | 19 |
| $ | 34 |
|
|
|
| ||||
Total Segment EBIT (c) | $ | 886 |
| $ | 893 |
|
Mark-to-market timing differences (a) |
| (181 | ) |
| (76 | ) |
Total Certain (gains) & charges (b) |
| (10 | ) |
| (17 | ) |
Adjusted Total Segment EBIT (c) | $ | 695 |
| $ | 800 |
|
(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) | 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) | 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, 2023 | Mar 31, 2022 | ||||
Volumes (in thousand metric tons) |
| 18,386 |
|
| 20,070 |
|
|
|
| ||||
Net Sales | $ | 10,852 |
| $ | 11,231 |
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Gross Profit | $ | 808 |
| $ | 864 |
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Selling, general and administrative expense | $ | (132 | ) | $ | (121 | ) |
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Foreign exchange gains (lo Back to Press releases 2023 page | ||||||