Bunge Limited
CEO : Mr. Gregory A. Heckman
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -0.1% YoY | 21.9% | 42.4% | 2023-02-08 |
John Neppl says,
Global Soybean Margins Expected to Remain Steady in 2023
- The soy margins in total are expected to be about the same in ’23 as in ’22.
- Brazil’s soybean crop is expected to be up compared to last year.
- The U.S. soy margins could be slightly down.
- China’s demand for soy is expected to accelerate as they come out of COVID, and their spot margins have already started to improve.
- The EU’s curve looks better than last year, and the lower energy prices will not only benefit soy but also softs.
Impact of Argentina’s Crop on Soybean Volumes and Crush Margins
- The crop in Argentina is small all year, which will result in lower volumes.
- The crush margins in Argentina will be stressed due to the weather.
- There are rumors that some people are securing supplies for safety, indicating a tight S&D situation.
Soft Margins Expected to Increase in North America and Europe
- The soft margins in both North America and Europe are expected to be up versus ’22.
- Seed supply and better energy outlook in Europe are the two main reasons for the increase.
The Importance of Bunge’s Global Diversification
- Bunge’s geographical diversity is the best risk management tool that allowed the company to perform well in a variety of situations in the last few years.
Greg Heckman says,
Fourth quarter performance
- Adjusted core segment EBIT above last year’s results.
- Strong performance across all regions in Refined and Specialty Oils.
Market environment and outlook for 2023
- Globally tight crop supply, strong demand for core protein meal and vegetable oil products.
- Continued impact to global trade of commodity price volatility and supply chain disruptions.
- Global demand for feedstocks and related services for renewable fuels expected to grow.
- Full year adjusted EPS of at least $11 per share expected for 2023.
Q & A sessions,
Strengthening Core Business and Partnerships
- Origeo joint venture with UPL in Brazil providing end-to-end solutions to farmers
- Partnership with BZ Group in France to strengthen global platform and connect with BZ’s network of independent farmers
Sustainability Efforts
- Expanding satellite monitoring to achieve traceability and monitoring for 80% of indirect supply chain in Brazilian Cerrado
- Goal of achieving deforestation-free supply chains in 2025
Innovation and Investment in Renewable Space
- Joint venture with Chevron, partnership with CoverCress, and JV with Olleco
- Investing in plant-based lipids and proteins at R&D and innovation facilities
Growth in Plant Protein Space
- Natural adjacency to commodity supplier position
- Multimillion dollar improvement in innovation and R&D facility
- Working with customers to develop new products with plant-based ingredients
Positive Outlook for Earnings
- Forecasting at least $11 per share, with potential upside from merchandising, improved demand from China, and gradual build back to B15 in Brazil
- Confidence in capturing earnings with geographic platform and team
No bad stock 