Bunge Global (BG) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered solid results amid a challenging margin environment, with strong execution in core segments and operational improvements, though net income and EPS declined year-over-year.

• Completed the sale and exit of the non-core sugar and bioenergy JV in Brazil as of October 1, 2024, focusing on core business segments.

• Advanced integration planning for the Viterra acquisition, with conditional EU clearance and ongoing regulatory processes in Canada and China.

• Repurchased $200 million in shares in Q3, totaling $600 million year-to-date.

• Investments in facility upgrades and expansion, including breaking ground on the Avondale, Louisiana multi-oil facility.

Financial highlights

• Q3 2024 diluted EPS was $1.56, down from $2.47 in Q3 2023; adjusted EPS was $2.29, down from $2.99.

• Q3 2024 net income was $221 million, down from $373 million; net sales were $12.9 billion, down from $14.2 billion.

• Adjusted core segment EBIT for Q3 2024 was $561 million (Agribusiness), $182 million (Refined & Specialty Oils), $13 million (Milling); total segment EBIT was $407 million.

• Year-to-date adjusted funds from operations were $1.3 billion; discretionary cash flow for Q3 TTM was $1.4 billion with a 12.3% yield.

• Cash and cash equivalents at September 30, 2024, were $2.8 billion; total debt increased to $6.2 billion, mainly due to new senior notes for acquisition financing.

Outlook and guidance

• Full-year 2024 adjusted EPS is expected to be at least $9.25, reflecting strong Q3 and current market conditions.

• Agribusiness and Refined & Specialty Oils full-year results are forecasted up from previous outlooks but down from last year; Milling expected up from last year but below prior outlook.

• Non-core results expected to be down considerably due to the sugar JV sale and weak Q3.

• Adjusted annual effective tax rate expected at 22–24%; net interest expense $285–305 million; capex at upper end of $1.2–1.4 billion.

• The Viterra acquisition is expected to close in the coming months, pending remaining regulatory approvals.