On July 31, 2024, Bunge Global SA (BG, Financial) released its 8-K filing for the second quarter of 2024. Bunge Global SA, formerly Bunge Ltd, is an agribusiness and food company with operations along the farm-to-consumer food chain. The company segments include Agribusiness; Refined and Specialty Oils; Milling; Sugar and Bioenergy; and Corporate and Other. It generates maximum revenue from the Agribusiness segment. The company is an oilseed processor and producer of vegetable oils and protein meals, based on processing capacity, a grain processor, the seller of packaged plant-based oils, producer and seller of wheat flour, bakery mixes, and corn-based products in North and South America.
Performance Overview
Bunge Global SA reported Q2 GAAP diluted EPS of $0.48, a significant drop from $4.09 in the prior year. On an adjusted basis, excluding certain gains/charges and mark-to-market timing differences, EPS was $1.73 compared to $3.72 in the previous year. The company attributed the lower Agribusiness results to a more balanced global supply environment. Despite a strong performance in Refined and Specialty Oils, results were down from the prior year.
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. The integration planning process for Viterra is progressing well and the team is excited about the opportunities that the combination will create for our employees, customers and other important stakeholders."
Financial Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net income attributable to Bunge | $70 million | $622 million |
| Net income per share-diluted | $0.48 | $4.09 |
| Adjusted Net income per share-diluted | $1.73 | $3.72 |
| Core Segment EBIT | $361 million | $1,016 million |
| Adjusted Core Segment EBIT | $519 million | $893 million |
Segment Performance
The Agribusiness segment saw a decline in net sales to $9,657 million from $10,875 million in Q2 2023. Gross profit also fell to $289 million from $997 million. The segment's EBIT dropped to $138 million from $785 million in the previous year. The Refined and Specialty Oils segment performed well but could not match the strong results from the prior year.
Cash Flow and Income Taxes
Cash used for operations in the first six months of 2024 was $480 million, compared to cash provided of $472 million in the same period last year. The reduction was primarily driven by lower reported net income and net changes in working capital. Adjusted funds from operations (FFO) were $895 million, down from $1,360 million in the prior year. Income tax expense for the first half of 2024 was $147 million, down from $381 million in the previous year, primarily due to lower pre-tax income.
Updated Full-Year Outlook
Bunge Global SA updated its adjusted full-year EPS outlook to approximately $9.25. The company expects full-year results in Agribusiness to be in line with the previous outlook, with higher results in Processing offset by lower results in Merchandising. Refined and Specialty Oils are expected to perform better than initially forecasted but will still be down compared to last year's record performance. Milling results are expected to be up from last year, while Corporate and Other results are anticipated to be similar to the previous outlook. Non-Core segment results in the sugar & bioenergy joint venture are expected to be slightly down from the previous outlook and significantly down from last year.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Bunge Global SA for further details.
