Bunge Ltd. reported a better-than-expected quarterly profit on Wednesday, as it focused on improving segment margins across its businesses, sending its shares up about 3%, reports Reuters.
In its agribusiness segment, more oil demand boosted sales of soft seeds and drove higher results in South America, the company said.
Higher sales in Argentina also helped the company’s grains unit report positive adjusted earnings before interest and tax (EBIT) margins compared with a negative margin last year, the company said.
“We finished 2019 on a strong note, driven by solid operating performance and market conditions that moved in our favor during the quarter," says Greg Heckman, CEO, in a statement. "The improvements we’ve made to our business and our more rigorous approach to risk management enabled us to adapt quickly and benefit from upside opportunities.
"As we look back across 2019, our team executed well despite the complex environment and the substantial changes that are underway at Bunge," he continues. "Looking ahead to 2020, we will remain nimble and prudent in order to maximize the earnings potential of our global platform, while continuing to optimize our portfolio and operations."
The company released the following results for its Q4 2019 and full-year 2019 results:
- Full-year 2019 GAAP EPS of $(9.34) vs. $1.57 in the prior year; $4.58 vs. $2.72 on an adjusted basis
- Q4 GAAP EPS of $(0.48) vs.$(0.51) in the prior year; $1.27 vs. $0.08 on an adjusted basis
- Agribusiness results driven by excellent execution and a better than expected market environment
- Food & Ingredients results benefited from improved performance in North America and Asia, as well as favorable timing differences
- Substantial progress on key priorities in 2019 - streamlined portfolio; implemented disciplined approach to risk management; improved operations and created new operating mode
