Bunge Reports First Quarter 2021 Results
Bunge Limited (NYSE:BG) today reported first quarter 2021 results
-
Q1 GAAP EPS of
$5.52 vs.$(1.46) in the prior year;$3.13 vs.$0.91 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences - Outstanding Agribusiness execution capturing opportunities throughout the global value chains
- Excellent results in Refined and Specialty Oils benefiting from improved demand and our continued focus on customers and innovation
-
Increasing full-year adjusted EPS outlook to ~
$7.50 b ased on strong Q1 results and positive market trends -
Increasing quarterly common dividend by
5% to$0.52 5 per share
- Overview
Greg Heckman, Bunge's Chief Executive Officer, commented, "Our outstanding results in the first quarter reflect the fundamental strength of Bunge's platform and the benefits our integrated global approach bring to farmers and end customers. Working together across value chains, our teams are capturing opportunities while effectively adapting to dynamic market environments. We remain focused on the safety of our employees and communities in the face of the ongoing pandemic, and we continue to serve changing consumer and business needs in the markets in which we operate. We are optimistic that the favorable demand environment in the first quarter will continue through 2021, and we are confident we have the right team and model in place to maintain our positive momentum."
- Financial Highlights
Quarter Ended March 31, |
|||||||
(US$ in millions, except per share data) |
2021 |
2020 |
|||||
Net income attributable to Bunge |
$ |
831 |
|
$ |
(184 |
) |
|
|
|
|
|||||
Net income per common share-diluted |
$ |
5.52 |
|
$ |
(1.46 |
) |
|
|
|
|
|||||
Mark-to-market timing difference (a) |
$ |
(1.30 |
) |
$ |
2.25 |
|
|
Certain (gains) and charges (b) |
$ |
(1.09 |
) |
$ |
0.02 |
|
|
Adjustment of redeemable noncontrolling interest (c) |
$ |
— |
|
$ |
0.10 |
|
|
Adjusted Net income per common share-diluted (d) |
$ |
3.13 |
|
$ |
0.91 |
|
|
|
|
|
|||||
Core Segment EBIT (d) (e) |
$ |
1,152 |
|
$ |
(56 |
) |
|
Mark-to-market timing difference (a) |
(245 |
) |
410 |
|
|||
Certain (gains) & charges (b) |
(170 |
) |
— |
|
|||
Adjusted Core Segment EBIT (d) |
$ |
737 |
|
$ |
354 |
|
|
|
|
|
|||||
Corporate and Other EBIT (d) |
$ |
(86 |
) |
$ |
(64 |
) |
|
Certain (gains) & charges (b) |
— |
|
5 |
|
|||
Adjusted Corporate and Other EBIT (d) |
$ |
(86 |
) |
$ |
(59 |
) |
|
|
|
|
|||||
Non-core Segment EBIT (d) (f) |
$ |
20 |
|
$ |
(50 |
) |
|
Certain (gains) & charges (b) |
— |
|
— |
|
|||
Adjusted Non-core Segment EBIT (d) |
$ |
20 |
|
$ |
(50 |
) |
|
|
|
|
|||||
Total Segment EBIT (d) |
$ |
1,086 |
|
$ |
(170 |
) |
|
Mark-to-market timing difference (a) |
(245 |
) |
$ |
410 |
|
||
Total Certain (gains) & charges (b) |
(170 |
) |
$ |
5 |
|
||
Adjusted Total Segment EBIT (d) |
$ |
671 |
|
$ |
245 |
|
|
|
|
|
|||||
(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 |
(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. |
- First Quarter Results
| Core Segments | |||||||
Agribusiness |
|||||||
|
Quarter Ended |
||||||
(US$ in millions, except per share data) |
Mar 31, 2021 |
Mar 31, 2020 |
|||||
Volumes (in thousand metric tons) |
36,356 |
|
32,681 |
|
|||
|
|
|
|||||
Net Sales |
$ |
9,791 |
|
$ |
6,382 |
|
|
|
|
|
|||||
Gross Profit |
$ |
886 |
|
$ |
(3 |
) |
|
|
|
|
|||||
Selling, general and administrative expense |
$ |
(80 |
) |
$ |
(109 |
) |
|
|
|
|
|||||
Foreign exchange gains (losses) |
$ |
(8 |
) |
$ |
(12 |
) |
|
|
|
|
|||||
EBIT attributable to noncontrolling interests |
$ |
(8 |
) |
$ |
2 |
|
|
|
|
|
|||||
Other income (expense) - net |
$ |
22 |
|
$ |
(8 |
) |
|
|
|
|
|||||
Income (loss) from affiliates |
$ |
24 |
|
$ |
9 |
|
|
|
|
|
|||||
Segment EBIT |
$ |
836 |
|
$ |
(121 |
) |
|
Mark-to-market timing difference |
(235 |
) |
385 |
|
|||
Certain (gains) & charges |
— |
|
— |
|
|||
Adjusted Segment EBIT |
$ |
601 |
|
$ |
264 |
|
|
|
|
|
|||||
Certain (gains) & charges, Net Income (Loss) Attributable to Bunge |
$ |
— |
|
$ |
— |
|
|
Certain (gains) & charges, Earnings Per Share |
$ |
— |
|
$ |
— |
|
|
Processing (2) |
|||||||
|
Quarter Ended |
||||||
(US$ in millions) |
Mar 31, 2021 |
Mar 31, 2020 |
|||||
Processing EBIT |
$ |
729 |
|
$ |
(55 |
) |
|
Mark-to-market timing difference |
(366 |
) |
264 |
|
|||
Certain (gains) & charges |
— |
|
— |
|
|||
Adjusted Processing EBIT |
$ |
363 |
|
$ |
209 |
|
|
In Processing, improved performance in the quarter was driven by higher results in all softseed and soy crush value chains, which included an increased contribution from U.S. soybean origination.
Merchandising (2) |
|||||||
|
Quarter Ended |
||||||
(US$ in millions) |
Mar 31, 2021 |
Mar 31, 2020 |
|||||
Merchandising EBIT |
$ |
107 |
|
$ |
(66 |
) |
|
Mark-to-market timing difference |
131 |
|
121 |
|
|||
Certain (gains) & charges |
— |
|
— |
|
|||
Adjusted Merchandising EBIT |
$ |
238 |
|
$ |
55 |
|
|
In Merchandising, improved volumes and margins in our global oils, corn and wheat value chains were primarily driven by increased export demand, strong grain origination in North America and Australia and excellent execution. Results in our financial services business were also higher than the prior year.
Refined & Specialty Oils |
|||||||
|
Quarter Ended |
||||||
(US$ in millions, except per share data) |
Mar 31, 2021 |
Mar 31, 2020 |
|||||
Volumes (in thousand metric tons) |
2,205 |
|
2,354 |
|
|||
|
|
|
|||||
Net Sales |
$ |
2,726 |
|
$ |
2,325 |
|
|
|
|
|
|||||
Gross Profit |
$ |
235 |
|
$ |
128 |
|
|
|
|
|
|||||
Selling, general and administrative expense |
$ |
(86 |
) |
$ |
(94 |
) |
|
|
|
|
|||||
Foreign exchange gains (losses) |
$ |
2 |
|
$ |
7 |
|
|
|
|
|
|||||
EBIT attributable to noncontrolling interests |
$ |
(79 |
) |
$ |
6 |
|
|
|
|
|
|||||
Other income (expense) - net |
$ |
236 |
|
$ |
— |
|
|
|
|
|
|||||
Segment EBIT |
$ |
308 |
|
$ |
47 |
|
|
Mark-to-market timing difference |
(14 |
) |
20 |
|
|||
Certain (gains) & charges |
(170 |
) |
— |
|
|||
Adjusted Segment EBIT |
$ |
124 |
|
$ |
67 |
|
|
|
|
|
|||||
Certain (gains) & charges, Net Income (Loss) Attributable to Bunge |
$ |
(165 |
) |
$ |
— |
|
|
Certain (gains) & charges, Earnings Per Share |
$ |
(1.09 |
) |
$ |
— |
|
|
Refined & Specialty Oils Summary
The strong performance in the quarter reflected higher results in all regions driven by improved execution, as well as favorable market trends. North America refining benefited from early stage recovery in foodservice and increased demand from the renewable diesel sector. Higher margins in South America and Europe more than offset lower volumes. Asia benefited from strong demand in India prior to the re-imposing of restrictions due to the surge in new COVID-19 cases.
Milling |
|||||||
|
Quarter Ended |
||||||
(US$ in millions, except per share data) |
Mar 31, 2021 |
Mar 31, 2020 |
|||||
Volumes (in thousand metric tons) |
1,739 |
|
1,938 |
|
|||
|
|
|
|||||
Net Sales |
$ |
390 |
|
$ |
416 |
|
|
