Bunge Shares Tumble Over 6% After Q2 Miss; CEO Highlights Strategic Moves Amid Cash Flow Concerns

Bunge Limited BG shares are trading lower after releasing results for the second quarter.

The company reported adjusted earnings per share of $1.73, missing the analyst consensus of $1.80. Second-quarter sales of $13.24 billion missed the street view of $14.27 billion.

Bunge’s second-quarter results showed lower Agribusiness performance due to a more balanced global supply environment.

While Refined and Specialty Oils performed well, results were down compared to a strong previous year, it said in a press release.

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The company added that it made “excellent progress” on Viterra integration planning and other strategic priorities, including the announced sale of its interest in the sugar and bioenergy joint venture.

Greg Heckman, Bunge’s Chief Executive Officer, commented, “Our team delivered solid results for the second quarter while also moving forward on a range of strategic priorities, including announcing the sale of our interest in the BP Bunge Bioenergia joint venture.”

Cash used for operations in the six months ended June was $480 million compared to cash provided of $472 million in the same period last year.

The reduction of cash from operations was primarily driven by lower reported net income and net changes in working capital. 

Bunge exited the quarter with cash and equivalents worth $1.161 billion. Total inventories totaled $8.057 billion.

As of the quarter-end, the company’s long-term debt pegged at $4.086 billion.

“Current market conditions have improved in some regions, but we continue to have limited visibility into the latter part of the year,” Heckman added.

Outlook Raised: Bunge added that taking into account first-half results, the current margin environment, and forward curves, the company sees full-year 2024 adjusted EPS of approximately $9.25 versus the $9.46 estimate (prior view: $9).

Price Action: BG shares are trading lower by 6.61% to $106.98 premarket at last check Wednesday.

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