Bunge Beats On Q3 Earnings, Agribusiness Weighs On Growth Amid Global Margin Pressure

Bunge Limited reports strong Q3 earnings of $2.29 per share, exceeding expectations. Results declined from the prior year due to the current global margin environment.

Bunge Limited BG reported third-quarter adjusted earnings per share of $2.29, beating the street view of $2.14. Quarterly sales of $12.908 billion outpaced the analyst consensus estimate of $12.774 billion.

Bunge Global said it reported solid performances in Agribusiness and Refined and Specialty Oils; however, results declined from the prior year due to the current global margin environment.

Net sales at Agribusiness decreased to $9.292 billion from $10.082 billion. The unit’s EBIT included a $19 million impairment charge in Income (loss) from affiliates related to a minority investment in North America.

The company continued to advance its Viterra integration planning and other growth priorities, including the successful closure of the sale of its sugar and bioenergy joint venture.

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In the nine months ended September 30, cash provided by operations was $847 million, down from $1.860 billion in the same period last year. This reduction was primarily driven by lower reported net income.

Bunge exited the quarter with cash and equivalents worth $2.836 billion. Total inventories totaled $7.465 billion.

As of the quarter-end, the company’s long-term debt pegged at $4.777 billion.

Outlook: Bunge now expects FY24 adjusted EPS outlook of at least $9.25 (prior view: approximately $9.25), compared to an estimate of $9.41. In Agribusiness, results are expected to be slightly higher than in the previous quarter but lower than last year.

Additionally, the company currently anticipates an adjusted annual effective tax rate of 22% to 24%, net interest expense between $285 million and $305 million, capital expenditures in the upper range of $1.2 billion to $1.4 billion, and depreciation and amortization of approximately $450 million for 2024.

Price Action: BG shares are trading higher by 1.20% to $88.90 at last check Wednesday.

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