Bunge raised its full-year adjusted profit outlook on Wednesday while reporting its second quarter 2021 results.
"Our team outperformed expectations by effectively navigating global volatility to produce another strong quarter of results. Our industrial, commercial and risk management teams collaborated throughout the value chains, optimizing trade flows and production volumes while reducing unplanned downtime," says Greg Heckman, CEO.
“With an accelerating structural shift in demand for sustainable food, feed and fuel, Bunge’s position in the global agribusiness supply chain provides growing opportunity to partner with customers to meet their needs in this changing environment," adds Heckman.
“We are proud of our work with farmers and customers to sustainably connect supply and demand, develop innovative products and services and create new plant-based solutions.”
Highlights include:
- Q2 GAAP EPS of $2.37 vs. $3.47 in the prior year; $2.61 vs. $1.88 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences
- Continued strong Agribusiness execution across the global network
- Outstanding Refined and Specialty Oils results driven by increasing demand and record refining capacity utilization
- Increasing full-year adjusted EPS outlook to at least $8.50 based on strong Q2 results
- Updating mid-cycle earnings baseline with $2 per share increase reflecting structural changes in oilseed market environment and greater execution benefits from new operating model
OUTLOOK
Bunge is increasing its full-year 2021 EPS outlook to reflect our strong second quarter results. It is now forecasting full-year 2021 adjusted EPS of at least $8.50 per share.
In Agribusiness, results are expected to be modestly up from its previous outlook, but still forecasted to be
down from a very strong 2020.
In Refined and Specialty Oils, results are expected to be up from its previous outlook reflecting its strong second quarter results and positive trends in North America being driven by increased demand from food service and renewable diesel.
Bunge continues to expect results in Milling and Corporate and Other to be generally in line with last year.
Additionally, the company now expects the following for 2021: an adjusted annual effective tax rate in the range of 17% to 19%; net interest expense in the range of $220 to $230 million; capital expenditures in the range of $450 to $500 million; and depreciation and amortization of approximately $420 million.
In Non-Core, full-year results in the sugar and bioenergy joint venture are expected to be a positive contributor.
