Bunge Reports Third Quarter 2021 Results
ST. LOUIS--(BUSINESS WIRE)--October 27, 2021--
Bunge Limited (NYSE:BG) today reported third quarter 2021 results
-- Q3 GAAP EPS of $4.28 vs. $1.84 in the prior year; $3.72 vs. $2.47 on an
adjusted basis excluding certain gains/charges and mark-to-market timing
differences
-- Strong performances across Bunge's core and non-core operations
-- Agribusiness results driven by strong execution and better than expected
market environment
-- Refined and Specialty Oils performance improved in all regions with
particular strength in North America
-- Announced actions to further improve business portfolio: forming
renewable fuel feedstocks JV with Chevron and sale of Mexico wheat mills
-- Repurchased $100 million of Bunge common shares completing existing $500
million authorization; Bunge Board authorized new $500 million program
-- Increasing full-year adjusted EPS outlook to at least $11.50 based on
strong Q3 results and favorable market trends
-- Overview
Greg Heckman, Bunge's Chief Executive Officer, commented, "We delivered a truly exceptional quarter. Our team was nimble, insightful and proactive, effectively managing supply chains, capacity and risk. Our global platform has allowed us to serve our customers - both farmers and end consumers - in today's volatile environment. At the same time, we remain intensely focused on a disciplined and balanced approach to allocating capital to maintain our financial strength, invest in growth opportunities, and return capital to our shareholders.
"Looking ahead, we expect the favorable market trends to continue. We are well-positioned to help our customers across the supply chain address the challenges in meeting increasing consumer demand for sustainable food, feed and fuel."
-- Financial Highlights
Quarter Ended Nine Months Ended
September 30, September 30,
---------------- ------------------
(US$ in millions,
except per share
data) 2021 2020 2021 2020
------------------ ------- ------- ------- ---------
Net income
attributable to
Bunge $ 653 $ 262 $1,847 $ 594
Net income per
common
share-diluted $ 4.28 $ 1.84 $12.12 $ 3.98
Mark-to-market
timing difference
(a) $ 0.22 $ 0.85 $(0.83) $ 0.97
Certain (gains) and
charges (b) $(0.78) $(0.14) $(1.86) $ 0.32
Adjustment of
redeemable
noncontrolling
interest (c) $ -- $(0.08) $ -- $(0.01)
----- ----- ----- -----
Adjusted Net income
per common
share-diluted (d) $ 3.72 $ 2.47 $ 9.43 $ 5.26
Core Segment EBIT
(d) (e) $ 812 $ 419 $2,464 $1,312
Mark-to-market
timing
difference (a) 44 161 (151) 186
Certain (gains)
& charges (b) (158) -- (328) --
------ ------ ------ ------
Adjusted Core
Segment EBIT (d) $ 698 $ 580 $1,985 $1,498
----- ----- ----- -----
Corporate and Other
EBIT (d) $ (81) $ (92) $ (227) $ (279)
Certain (gains)
& charges (b) -- -- -- 71
------ ------ ------ ------
Adjusted Corporate
and Other EBIT
(d) $ (81) $ (92) $ (227) $ (208)
----- ----- ----- -----
Non-core Segment
EBIT (d) (f) $ 53 $ 24 $ 92 $ (114)
Certain (gains) &
charges (b) -- -- -- --
------ ------ ------ ------
Adjusted Non-core
Segment EBIT (d) $ 53 $ 24 $ 92 $ (114)
----- ----- ----- -----
Total Segment EBIT
(d) $ 784 $ 351 $2,329 $ 919
Mark-to-market
timing
difference (a) 44 $ 161 $ (151) $ 186
Total Certain
(gains) &
charges (b) (158) $ -- $ (328) $ 71
------ ----- ----- -----
Adjusted Total
Segment EBIT (d) $ 670 $ 512 $1,850 $1,176
===== ===== ===== =====
(a) Mark-to-market timing impact of certain commodity and freight
contracts, readily marketable inventories, and related hedges
associated with committed future operating capacity. See note 3 in the
Additional Financial information section of this release for details.
(b) Certain (gains) & charges included in Total Segment EBIT. See
Additional Financial Information for details.
(c) Retained earnings impact associated with an adjustment to the carrying
amount of the redeemable noncontrolling interest recorded in respect of
our 70% ownership interest in Loders. See note 4 in the Additional
Financial information section of this release for details.
(d) Core Segment EBIT, Adjusted Core Segment EBIT, Corporate and Other
EBIT, Adjusted Corporate and Other EBIT, Non-core Segment EBIT,
Adjusted Non-core Segment EBIT, Total Segment EBIT, Adjusted Total
Segment EBIT, and Adjusted Net income per common share-diluted are
non-GAAP financial measures. Reconciliations to the most directly
comparable U.S. GAAP measures are included in the tables attached to
this press release and the accompanying slide presentation posted on
Bunge's website.
(e) Core Segment earnings before interest and tax ("Core Segment EBIT")
comprises the aggregate earnings before interest and tax ("EBIT") of
Bunge's Agribusiness, Refined and Specialty Oils and Milling reportable
segments, and excludes Bunge's Sugar & Bioenergy reportable segment and
Corporate and Other activities.
(f) Non-core Segment EBIT comprises Bunge's Sugar & Bioenergy reportable
segment EBIT, which reflects Bunge's share of the results of its 50/50
joint venture with BP p.l.c.
-- Third Quarter Results
Core Segments
Agribusiness
Quarter Ended Nine Months Ended
------------------ ----------------------
(US$ in millions,
except per share Sep 30, Sep 30, Sep 30, Sep 30,
data) 2021 2020 2021 2020
-------------------- -------- -------- --------- -----------
Volumes (in thousand
metric tons) 30,486 36,319 106,375 107,269
Net Sales $ 9,868 $ 7,290 $ 31,312 $ 20,597
Gross Profit $ 591 $ 373 $ 1,887 $ 1,278
Selling, general and
administrative
expense $ (118) $ (145) $ (313) $ (365)
Foreign exchange
gains (losses) $ (30) $ 59 $ (1) $ 78
EBIT attributable to
noncontrolling
interests $ 5 $ (2) $ (6) $ (7)
Other income
(expense) - net $ 181 $ 15 $ 227 $ 39
Income (loss) from
affiliates $ 10 $ 17 $ 44 $ 46
Segment EBIT $ 639 $ 317 $ 1,838 $ 1,069
Mark-to-market
timing
difference 52 168 (144) 175
Certain (gains) &
charges (158) -- (158) --
------- ------- -------- --------
Adjusted Segment
EBIT $ 533 $ 485 $ 1,536 $ 1,244
Certain (gains) &
charges, Net Income
(Loss) Attributable
to Bunge $ (119) $ -- $ (119) $ --
Certain (gains) &
charges, Earnings
Per Share $ (0.78) $ -- $ (0.78) $ --
Processing (2)
Quarter Ended Nine Months Ended
------------------------ ------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
(US$ in millions) 2021 2020 2021 2020
------------------ ----------- ----------- ----------- -----------
Processing EBIT $ 298 $ 235 $ 1,364 $ 828
Mark-to-market
timing
difference 194 178 (301) 141
Certain (gains)
& charges (73) -- (73) --
------- ----------- ---------- -----------
Adjusted
Processing EBIT $ 419 $ 413 $ 990 $ 969
In Processing, higher results in North America, European softseeds and our Asian and European destination value chains, which all benefited from strong vegetable oil demand, were partially offset by lower results in South America, where margins were down compared to a particularly strong prior year.
Merchandising (2)
Quarter Ended Nine Months Ended
-------------------------- ------------------------
Sep 30, Sep 30,
(US$ in millions) Sep 30, 2021 Sep 30, 2020 2021 2020
------------------ ------------ ------------ ----------- -----------
Merchandising EBIT $ 341 $ 82 $ 474 $ 241
Mark-to-market
timing
difference (142) (10) 157 34
Certain (gains)
& charges (85) -- (85) --
-------- ------- --- ------- -----------
Adjusted
Merchandising
EBIT $ 114 $ 72 $ 546 $ 275