Bunge Ltd. has reported a first-quarter loss on Wednesday and lowered its full-year forecast as the coronavirus pandemic hammered demand for fuel and upended global food supply chains, reports Reuters.
The quarterly results do not yet reflect the more recent oil price crash and its related impact on biofuels pricing.
"We did not experience significant disruptions to our business from COVID-19 in the first quarter, although we did start to see the impact of changing consumer behavior in parts of our Edible Oils business in March," Greg Heckman, Bunge's CEO, said in a statement.
The company also released the following results:
- Q1 GAAP EPS of $(1.46) vs. $0.26 in the prior year; $(1.34) vs. $0.36 on an adjusted basis
- Agribusiness executed well; results impacted by approximately $385 million of temporary mark-to-market losses on forward hedges
- Strong quarter in Edible Oils; results impacted by timing differences
- Progress on portfolio optimization with the announcement to sell 35 U.S. grain elevators
- Implemented additional safety measures in response to COVID-19
- Maintaining strong liquidity position and durable balance sheet
"I am incredibly proud and grateful for our team’s commitment and performance during this highly challenging period," Heckman says . "Bunge is a critical part of the global food infrastructure, and our team remains dedicated to ensuring that key feed and food ingredients are getting from farmers to consumers as we navigate this global crisis together.
"Our underlying business performed well during the quarter, and the mark-to-market adjustments we incurred are expected to reverse in the coming quarters," he continues. "The work we have done to improve our operations, streamline our portfolio, and refine our approach to risk management has allowed us to remain nimble and adapt to evolving business and operational demands.
"Without question this will continue to be a challenging year, but we have a strong platform, a resilient team, and a remarkable base of customers on both ends of the supply chain that will allow us to continue to perform our critical role in the global food infrastructure and drive value along the way," Heckman concludes.
