Bunge Q2: Sales Plunge 16%, Beats On EPS, Boosts FY23 EPS Outlook & More

Bunge Ltd BG reported a second-quarter FY23 sales decline of 16.1% year-on-year to $15.05 billion, missing the analyst consensus of $16.18 billion.

Net sales from the Agribusiness segment declined to $10.9 billion, and Refined & Specialty Oils decreased 18.9% to $3.6 billion.

Adjusted EPS of $3.72 beat the analyst consensus of $2.61.

Gross profit jumped 76% Y/Y to $1.36 billion. Adjusted total segment EBIT amounted to $823 million, an 32% increase Y/Y.

The company held $1.33 billion in cash and equivalents as of June 30, 2023.

"Our team remained flexible, leveraging our global footprint and connectivity to optimize margins and utilization as market conditions evolved over the quarter," said CEO Greg Heckman.

Outlook: Bunge raised the FY23 adjusted EPS outlook to $11.75 from the previous $11, against the consensus of $11.60.

Bunge expects to incur capital expenditures of $1 billion - $1.2 billion.

In Agribusiness, the company forecasts full-year results to be slightly up from prior outlook driven by higher results in Processing, but remain down from last year due to lower expected performance in Merchandising. 

Price Action: BG shares are trading higher by 1.90% at $110.48 in premarket on the last check Wednesday.