Bunge Global SA has released its financial results for the second quarter of 2024, revealing a significant decline in earnings compared to the previous year. The company reported a GAAP diluted earnings per share (EPS) of $0.48, down from $4.09 in the same quarter last year. On an adjusted basis, EPS was $1.73, compared to $3.72 in Q2 2023, reflecting the impact of various gains, charges, and mark-to-market timing differences.
Key financial highlights
- Net Income: The company reported a net income of $70 million, a sharp decrease from $622 million in Q2 2023.
- Agribusiness Performance: Results in the Agribusiness segment were notably lower, attributed to a more balanced global supply environment, which has affected sales and profitability.
- Refined and Specialty Oils: While this segment performed well, it still fell short of last year's strong results.
- Strategic Initiatives: Bunge has made excellent progress in integrating Viterra and has announced the sale of its interest in the BP Bunge Bioenergia joint venture, a move aimed at streamlining operations and focusing on core business areas.
CEO comments
Greg Heckman, Bunge’s Chief Executive Officer, stated, “Our team delivered solid results for the second quarter while also moving forward on a range of strategic priorities. The integration planning process for Viterra is progressing well, and we are excited about the opportunities that this combination will create for our employees, customers, and other important stakeholders.”
He added, “Current market conditions have improved in some regions, but we continue to have limited visibility into the latter part of the year. The drivers of long-term demand remain strong, and with our global footprint and operational flexibility, we are well-positioned to connect farmers to consumers to deliver essential food, feed, and fuel to the world.”
Updated full-year outlook
Bunge has updated its adjusted full-year EPS outlook to approximately $9.25, reflecting the current margin environment and first-half results. The company anticipates:
- Agribusiness: Full-year results expected to align with previous forecasts, with higher results in Processing offset by lower results in Merchandising.
- Refined and Specialty Oils: Anticipated to perform better than previously expected but still below last year’s record performance.
- Milling: Expected to show results similar to previous forecasts and an improvement from last year.
- Corporate and Other: Results are projected to remain consistent with prior outlooks.
- Non-Core Segment: Results from the sugar and bioenergy joint venture are expected to decline slightly from previous forecasts and significantly from last year.
Financial projections for 2024
Bunge also provided guidance for 2024, including:
- An adjusted annual effective tax rate of 22% to 25%.
- Net interest expense projected between $280 million and $310 million.
- Capital expenditures estimated in the range of $1.2 to $1.4 billion.
As Bunge navigates these challenges, the company remains focused on its strategic priorities and the long-term sustainability of its operations in the global agricultural market.
