Bunge Quarterly Adjusted Profit Nearly Doubles
Company cites better-than-anticipated agribusiness results despite ongoing COVID-19 pandemic
Bunge Ltd. reported a 91% rise in adjusted quarterly profit on Wednesday as strong soy processing margins and robust demand for animal feed and vegetable oils boosted earnings in its core agribusiness segment, reports Reuters.
Bunge raised full-year profit guidance for a second straight quarter, projecting 2020 profit of $6.25 to $6.75 per share.
The company cited better-than-anticipated agribusiness results and a more favorable outlook for its edible oils unit despite the ongoing coronavirus pandemic.
- Q3 GAAP EPS of $1.84 vs. $(10.57) in the prior year; $2.47 vs. $1.28 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences
- Strong results driven by outstanding execution across Bunge's global platform
- Exceptional Agribusiness performance driven by oilseed processing, which benefited from higher margins and volumes
- Edible Oils results better than expected; year to date results higher than prior year despite COVID-19 impacts
- Increasing full-year adjusted EPS outlook to between $6.25 and $6.75 based on strong Q3 results and improving market trends
“Our team delivered a strong third quarter with outstanding execution across our global platform, leveraging improving market trends," says Greg Heckman, Bunge CEO. "We achieved record crush utilization and captured exceptionally strong margins while supporting our customers and maintaining measures to protect the health of our employees.
"These results, and our performance over the past few quarters, reflect the meaningful changes we’ve made to our operating model, portfolio and financial approach.
"Looking into next year, we expect many of the favorable trends to continue with demand for our products remaining strong," he continues. "We also expect additional global demand for vegetable oil from the growth of biofuels. With our strength in oilseed processing, in addition to our global origination and distribution capabilities, we believe we are well positioned to meet market demands and capitalize on this growth."
See the full report here.