-
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
$9.25
- Overview
“The third quarter has again proven the value of our global footprint, operating model and approach, which underscores the benefit of further diversification across geographies and crops that our combination with Viterra will bring.”
- Financial Highlights
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
(US$ in millions, except per share data) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net income attributable to |
$ |
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 |
(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 |
(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 |
(e) |
|
Non-core Segment EBIT comprises Bunge’s Sugar & Bioenergy reportable segment EBIT, which reflects |
- Third Quarter Results
Core Segments
Agribusiness
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
(US$ in millions, except per share data) |
|
|
|
|
|
||||||||
Volumes (in thousand metric tons) |
|
19,892 |
|
|
18,854 |
|
|
|
60,663 |
|
|
55,497 |
|
|
|
|
|
|
|
||||||||
|
$ |
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 |
$ |
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) |
|
|
|
|
|
||||||
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
Merchandising (2)
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
(US$ in millions) |
|
|
|
|
|
||||||||
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) |
|
|
|
|
|
||||||||
Volumes (in thousand metric tons) |
|
2,334 |
|
|
2,278 |
|
|
|
6,829 |
|
|
6,636 |
|
|
|
|
|
|
|
||||||||
|
$ |
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 |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
Certain (gains) & charges, Earnings per share |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
Refined & Specialty Oils Summary
Higher results in
Milling
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
(US$ in millions, except per share data) |
|
|
|
|
|
||||||||
Volumes (in thousand metric tons) |
|
961 |
|
|
890 |
|
|
|
2,806 |
|
|
2,555 |
|
|
|
|
|
|
|
||||||||
|
$ |
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 |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
Certain (gains) & charges, Earnings per share |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
Milling Summary
Slightly higher results in
Corporate and Other
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
(US$ in millions, except per share data) |
|
|
|
|
|
||||||||
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 |
$ |
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) |
|
|
|
|
|
||||||||
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) |
|
|
|
|
|
||||||
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
Non-core Segments
Sugar & Bioenergy
|
Three Months Ended |
|
Nine Months Ended |
||||||
(US$ in millions, except per share data) |
|
|
|
|
|
||||
|
$ |
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 |
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
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
Cash Flow
|
Nine Months Ended |
|||
|
|
|
||
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
Income Taxes
For the nine months ended
- Outlook(5)
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
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
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
- Conference Call and Webcast Details
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
To listen to the call, please dial 1-844-735-3666. If you are located outside
A replay of the call will be available later in the day on
-
About
Bunge
At
- Website Information
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,
- 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
- 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
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to
|
Earnings Per Share Diluted (6) |
Segment EBIT |
|||||||||||||||
Three Months Ended |
|
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- |
|
— |
|
|
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
EBIT for the three months ended
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) |
|
|
||||
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
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
|
|
|
|
|
|
|
||||||||||||
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to
|
Earnings Per Share Diluted (6) |
Segment EBIT |
|||||||||||||||
Nine months ended |
|
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- |
|
— |
|
|
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
EBIT for the nine months ended
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) |
|
|
||||
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
EBIT for the nine months ended
- Consolidated Earnings Data (Unaudited)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(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 |
$ |
221 |
|
$ |
373 |
|
|
$ |
535 |
|
$ |
1,627 |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
$ |
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 |
- Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|||
(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 |
|
|
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 |
- Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended
|
|||||||
(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.
Total Segment EBIT and Adjusted Total Segment EBIT
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
Net Income (loss) attributable to
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
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
Below is a reconciliation of Net income (loss) attributable to
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(US$ in millions) |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Net income (loss) attributable to |
$ |
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
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
(US$ in millions, except per share data) |
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
Net income (loss) attributable to |
$ |
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 |
|
|
|
— |
|
(9 |
) |
|
|
— |
|
(25 |
) |
Adjusted Net income (loss) attributable to |
$ |
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 |
|
(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 |
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
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
- Notes
(1) |
|
A reconciliation of Net income (loss) attributable to |
|
Three months ended |
Nine months ended |
|||||||
(US$ in millions) |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
Net income (loss) attributable to |
$ |
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 |
||||||
(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 |
(6) |
|
On |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030566569/en/
Investor Contact:
636-292-3014
ruthann.wisener@bunge.com
Media Contact:
636-292-3022
news@bunge.com
Source: