Bunge Q4 Sales Falls Over 10%, CEO Cautions Of 'Less Robust Market Environment'

Bunge Global SA BG reported fourth-quarter 2023 net revenues of $14.936 billion, missing the analyst consensus of $15.056 billion. Sales slumped 10.3% year over year.

The company reported adjusted earnings per share of $3.70, beating the street view of $2.81.

Net sales from the Agribusiness segment declined to $10.955 billion from $11.981 billion, and Refined & Specialty Oils decreased to $3.513 billion from $4.127 billion a year ago.

Results in the quarter at Refined & Specialty Oils were down slightly from a particularly strong prior year as lower results in Europe and Asia more than offset improved performances in North and South America.

“Looking ahead to 2024, we currently expect a less robust market environment than we have recently experienced,” Greg Heckman, Bunge’s Chief Executive Officer, commented. 

Outlook: Bunge projects full-year 2024 adjusted EPS of approximately $9.00 per share (estimate: $10.52). 

In Agribusiness, full-year results are forecasted to be down from last year primarily due to lower results in Processing where margins have compressed in most regions. Results in Merchandising are forecasted to be down slightly from last year.

In 2024, the company expects an adjusted annual effective tax rate in the range of 21% to 25%; net interest expense in the range of $300 million to $330 million. 

Price Action: BG shares are trading lower by 1.68% to $88.52 on the last check Wednesday.