Bunge Ltd (BG) Reports Q3 2023 Earnings: Key Highlights and Financial Performance
Bunge Ltd (NYSE:BG) reported Q3 GAAP diluted EPS of $2.47, slightly down from $2.49 in the prior year.
Agribusiness results were offset by lower results in Merchandising, while Refined and Specialty Oils results were driven by strength in North America.
The company repurchased approximately $600 million of common shares since Q2 and increased full-year adjusted EPS outlook to at least $12.50.
Net income attributable to Bunge for the nine months ended September 30, 2023, was $1,627 million, up from $1,274 million in 2022.
On October 26, 2023, Bunge Ltd (NYSE:BG) released its third quarter 2023 earnings report. The company reported a Q3 GAAP diluted EPS of $2.47, compared to $2.49 in the prior year. On an adjusted basis, excluding certain gains/charges and mark-to-market timing differences, the EPS was $2.99, down from $3.45 in the previous year.
Financial Highlights
The company's net income attributable to Bunge for the nine months ended September 30, 2023, was $1,627 million, a significant increase from $1,274 million in 2022. The net income per common share-diluted for the same period was $10.71, up from $8.30 in 2022.
Adjusted Core Segment EBIT for the nine months ended September 30, 2023, was $2,384 million, up from $2,308 million in 2022. However, the Adjusted Corporate and Other EBIT for the same period was negative at $315 million, down from negative $256 million in 2022.
Segment Performance
In the Agribusiness segment, higher results in Brazil soy origination, Asia, and North America were largely offset by lower results in Argentina. The Refined and Specialty Oils segment saw higher results primarily driven by North America, while the Milling segment saw higher results primarily driven by South American operations.
The company also made significant progress on the Viterra transaction and other growth initiatives. Bunge's CEO, Greg Heckman, commented,
Our team remained focused on executing our day-to-day business to deliver strong results for the third quarter. Our operating model enabled us to maximize our global footprint as we responded effectively to shifting market conditions."
Outlook
Considering the year-to-date results and the current margin environment, Bunge Ltd (NYSE:BG) expects full-year 2023 adjusted EPS of at least $12.50. In Agribusiness, full-year results are expected to be up from the prior outlook and in line with last year. In Refined and Specialty Oils, full-year results are expected to be up from the prior outlook and last year's record performance.
The company also expects an adjusted annual effective tax rate in the range of 21% to 23%, net interest expense in the range of $340 to $360 million, capital expenditures in the range of $1.0 to $1.2 billion, and depreciation and amortization of approximately $425 million for 2023.
Explore the complete 8-K earnings release (here) from Bunge Ltd for further details.
This article first appeared on GuruFocus.
