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Bunge Raises EPS Outlook to 2026

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st. LOUIS — Based on an increased medium-term earnings baseline of $8.50 per share, projected future investments of approximately $3.3 billion in growth capex and M&A, and approximately $1.25 billion of stock repurchases, Bunge Introduced an earnings framework of about $11 per share for him. Shares through the end of 2026 will be revealed at the discussion of the second quarter results on 27 July.

CEO Gregory A. Heckman said in a conference call with analysts on July 27. “As a result, he provides his four-year earnings growth framework of approximately $11 per share by the end of 2026. This growth framework includes an earnings baseline increase of $8.50, plus , including the future benefits of investing in the business and share buybacks.”

Based on the strong second quarter performance and current market conditions, Bunge has raised its 2022 earnings per share guidance to at least $12 per share.

“Given our second quarter results, current market conditions and the forward curve, we have raised our full-year adjusted EPS guidance to at least $12 per share, an increase of 50 cents per share over our previous guidance. and could potentially rise, depending on market conditions and the balance between supply and demand.

In the second quarter ended June 30, Bunge reported net income of $206 million. This equates to $1.34 per share of his common stock. That was down 43% from his $362 million, or $2.37 per share, in the second quarter of the previous year. The latest quarterly results include his $233 million charge related to mark-to-market timing differences and his $68 million in other charges. Adjusted earnings were $2.97 per share, up 14% from $2.61 in the second quarter last year. Net sales in the second quarter were $17.93 billion, up 17% from $15.39 billion in the year-ago quarter.

On the New York Stock Exchange on July 27, Bunge’s share price closed at $91.52 per share, down 4% from its closing price of $95.33 on July 26.

Bunge’s Agribusiness EBIT was $93 million, down from $364 million in Q2 2021. Adjusting for mark-to-market timing differences and certain expenses, EBIT was $386 million, down 4% from $403 million in the previous year. Second quarter. Volume fell by 10% from 21.65 million tonnes to 19.49 million tonnes.

Merchandising performance was down from the particularly strong previous year. This was due to a stronger contribution from global grains, offset by lower results from ocean freight. The processing industry performance was primarily driven by soybean crushing in the US and Brazil, with strong demand for mills and oil. Soft Seeds’ results from his crash are also higher than last year, driven primarily by North America.

The Refined and Specialty Oils segment posted EBIT of $218 million in the second quarter, doubling from $102 million in the year-ago quarter. Net sales increased 39% to $4.4 billion from $3.2 billion. Volume increased from 2.24 million tonnes to 2.32 million tonnes. Performance in this segment improved in all regions, with particular strength in North America and Europe. Both of these benefit from strong food demand and strong fuel demand in the US.

Milling EBIT of $109 million tripled from last year’s EBIT of $34 million. Net sales increased 44% to $677 million from $471 million. The volume was 1.14 million tonnes, up 2% from 1.12 million tonnes in the second quarter of last year. Improved margins and effective supply chain risk management at flour milling in North America and South America helped improve performance, Bunge said.

“Milling results increased and we achieved record quarters as our team effectively managed our supply chain in a dynamic environment,” said Heckman.

For the first six months of the fiscal year, Bunge’s corporate net income was $894 million, or $5.81 per share of common stock, compared with $1.19 billion, or $7.85 per share, in the same period last year. Decreased. Net sales for the six months were $33.8 billion, up 20% from $28.35 billion in the prior year period.

“When we first announced our mid-cycle baseline in June 2020, we were in the early stages of transforming our operating model and optimizing our portfolio,” said Heckman. “It gave us a revenue framework that helped us think about how the business was going to operate with the changes we were making.

“With the initial portfolio and organizational work completed, we are updating our revenue framework baseline from $7 to $8.50, which reflects our current global platform. It includes structural improvements in market conditions and greater returns from our operating model.”