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Bunge Reports Second Quarter 2022 Results

·4-min read

ST. LOUIS, July 27, 2022--(BUSINESS WIRE)--Bunge Limited (NYSE:BG) today reported second quarter 2022 results

  • Q2 GAAP EPS of $1.34 vs. $2.37 in the prior year; $2.97 vs. $2.61 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences

  • In Agribusiness higher Processing results were more than offset by lower results in Merchandising versus a particularly strong prior year

  • Refined and Specialty Oils performance improved in all regions with particular strength in North America and Europe

  • Increasing full-year adjusted EPS outlook to at least $12 per share

  • Introducing earnings framework of ~$11 per share by end of 2026 building on increased earnings baseline of $8.50, plus future investments and share repurchases

  • Overview

Greg Heckman, Bunge’s Chief Executive Officer, commented, "In the face of significant market shifts, our team successfully delivered another quarter of year-over-year earnings improvement in our core segments. Our results reflect the adaptability of our business and strength of our operating model.

"Our focus on continuous improvement across everything we do allows us to be agile and to consistently create value in a variety of market environments. We are confident in our ability to successfully navigate volatility and effectively deploy capital, while continuing to help our customers on both ends of the value chains find solutions to the opportunities and challenges they face."

  • Financial Highlights

Three Months Ended

June 30,

Six Months Ended

June 30,

(US$ in millions, except per share data)

2022

2021

2022

2021

Net income attributable to Bunge

$

206

$

362

$

894

$

1,194

Net income per common share-diluted

$

1.34

$

2.37

$

5.81

$

7.85

Mark-to-market timing difference (a)

$

1.26

$

0.24

$

0.87

$

(1.05

)

Certain (gains) and charges (b)

$

0.37

$

$

0.55

$

(1.08

)

Adjusted Net income per common share-diluted (c)

$

2.97

$

2.61

$

7.23

$

5.72

Core Segment EBIT (c) (d)

$

408

$

500

$

1,330

$

1,652

Mark-to-market timing difference (a)

233

50

157

(195

)

Certain (gains) & charges (b)

68

80

(170

)

Adjusted Core Segment EBIT (c)

$

709

$

550

$

1,567

$

1,287

Corporate and Other EBIT (c)

$

(92

)

$

(60

)

$

(155

)

$

(146

)

Certain (gains) & charges (b)

(29

)

Adjusted Corporate and Other EBIT (c)

$

(92

)

$

(60

)

$

(184

)

$

(146

)

Non-core Segment EBIT (c) (e)

$

6

$

19

$

40

$

39

Certain (gains) & charges (b)

Adjusted Non-core Segment EBIT (c)

$

6

$

19

$

40

$

39

Total Segment EBIT (c)

$

322

$

459

$

1,215

$

1,545

Mark-to-market timing difference (a)

233

50

157

(195

)

Total Certain (gains) & charges (b)

68

51

(170

)

Adjusted Total Segment EBIT (c)

$

623

$

509

$

1,423

$

1,180

(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 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.

  • Second Quarter Results

Core Segments

Agribusiness

Three Months Ended

Six Months Ended

(US$ in millions, except per share data)

Jun 30, 2022

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Volumes (in thousand metric tons)

19,490

21,649

39,560

43,293

Net Sales

$

12,747

$

11,654

$

23,978

$

21,444

Gross Profit

$

316

$

410

$

1,180

$

1,295

Selling, general and administrative expense

$

(119

)

$

(114

)

$

(240

)

$

(194

)

Foreign exchange gains (losses)

$

(93

)

$

36

$

(84

)

$

29

EBIT attributable to noncontrolling interests

$

(13

)

$

(3

)

$

(17

)

$

(11

)

Other income (expense) - net

$

(14

)

$

24

$

(77

)

$

46

Income (loss) from affiliates

$

16

$

11

$

30

$

35

Segment EBIT

$

93

$

364

$

792

$

1,200

Mark-to-market timing difference

224

39

141

(196

)

Certain (gains) & charges

69

80

Adjusted Segment EBIT

$

386

$

403

$

1,013

$

1,004

Certain (gains) & charges, Net income (loss) attributable to Bunge

$

59

$

$

68

$

Certain (gains) & charges, Earnings per share

$

0.38

$

$

0.44

$

Processing (2)

Three Months Ended

Six Months Ended

(US$ in millions)

Jun 30, 2022

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Processing EBIT

$

11

$

338

$

562

$

1,067

Mark-to-market timing difference

175

(129

)

77

(495

)

Certain (gains) & charges

44

52

Adjusted Processing EBIT

$

230

$

209

$

691

$

572

Higher results in the quarter were primarily driven by U.S. and Brazil soy crush due to strong meal and oil demand. Results in softseed crush were also higher than last year primarily driven by North America.

Merchandising (2)

Three Months Ended

Six Months Ended

(US$ in millions)

Jun 30, 2022

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Merchandising EBIT

$

82

$

26

$

230

$

133

Mark-to-market timing difference

49

168

64

299

Certain (gains) & charges

25

28

Adjusted Merchandising EBIT

$

156

$

194

$

322

$

432

Merchandising had a good quarter, however, results were down compared to a particularly strong prior year, as a higher contribution from global grains was more than offset by lower results in ocean freight.

Refined & Specialty Oils

Three Months Ended

Six Months Ended

(US$ in millions, except per share data)

Jun 30, 2022

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

Volumes (in thousand metric tons)

2,328

2,242

4,624

4,419

Net Sales

$

4,445

$

3,198

$

8,421

$

5,924

Gross Profit

$

325

$

195

$

587

$

430

Selling, general and administrative expense

$

(87

)

$

(90

)

$

(176

)

$

(176

)

Foreign exchange gains (losses)

$

(8

)

$

1

$

(8

)

$

2

EBIT attributable to noncontrolling interests

$

(7

)

$

(5

)

$

(4

)

$

(83

)

Other income (expense) - net

$

(5

)

$

1

$

(8

)

$

237

Segment EBIT

$

218

$

102

$

391

$

410

Mark-to-market timing difference

(3

)

11

3

...