Consumer Staples
Farm Products
$10.89B
22K
Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer's grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.
Key insights and themes extracted from this filing
Net sales decreased to $14.227 billion from $16.759 billion in Q3 2022, driven by lower volumes and average sales prices in several segments. This indicates potential headwinds in demand or pricing power.
Gross profit increased to $1.045 billion from $0.888 billion in Q3 2022, driven by effective management of supply chains and more favorable mark-to-market results in the Refined and Specialty Oils segment.
Net income attributable to Bunge decreased to $373 million from $380 million in Q3 2022, due to lower results in Corporate and Other, as well as higher interest expense.
Bunge entered into a definitive agreement to acquire Viterra, creating an innovative global agribusiness company. Viterra shareholders are anticipated to receive approximately 65.6 million of common shares of Bunge issued stock and approximately $2.0 billion in cash.
Bunge entered into a definitive share purchase agreement with CJ CheilJedang Corporation and STIC CJ Global Investment Corporate Partnership Private Equity Fund to acquire 100% of outstanding equity of CJ Latam Participações Ltda. and CJ Selecta S.A. for a total cash consideration of approximately $510 million.
Bunge's Board of Directors approved a $1.7 billion expansion of the existing share repurchase program, bringing the total program size to $2.0 billion. This indicates confidence in the company's future prospects.
Bunge terminated the Bunge Master Trust in order to simplify the legal framework around its capital structure. This action is intended to improve operational efficiency.
Bunge's operational activities in Ukraine have steadily increased during recent months, but remain limited and are subject to Bunge's ability to perform activities safely. Alternative routes to export product are being effectively utilized.
Bunge is actively monitoring credit and counterparty risk through regular reviews of exposures and credit analysis by regional credit teams, as well as a review by global and corporate committees that monitor counterparty performance. We record provisions for counterparty losses from time to time as a result of our credit and counterparty analysis.
A significant downturn in global economic growth, or recessionary conditions in major geographic regions, may lead to reduced demand for agricultural commodities and food products, which could adversely affect our business and results of operations.
The scope, intensity, duration, and outcome of the ongoing war is uncertain, and any continuation or escalation of the war may have a material adverse effect on Bunge, including its Ukrainian operations.
Agricultural commodities are subject to price fluctuations due to a number of unpredictable factors, including inflationary pressures, that may create price risk.
The acquisition of Viterra by Bunge will create an innovative global agribusiness company well positioned to meet the demands of increasingly complex markets and better serve farmers and end-customers.
Bunge is managing competition through established policies that limit the amount of unhedged fixed price agricultural commodity positions permissible for our operating companies, which are generally a combination of volumetric, drawdown, and value-at-risk ("VaR") limits.
Following the announcement of the Viterra acquisition, all three rating agencies reviewed our credit ratings and published updated credit opinions on us, reflecting their views of the credit profile of the company both on a current standalone basis, and a pro-forma at closing basis.
Bunge is migrating certain processes from across our operations to shared business service models in order to consolidate back-office functions while standardizing our processes and financial systems globally.
Bunge is managing supply chains through effective management of supply chains, more favorable mark-to-market results, and an impairment charge of $55 million in the prior period related to the classification of our Russian oilseed and processing business as held-for-sale.
Bunge is managing transportation costs through the use of financial derivatives, generally freight forward agreements, to hedge portions of our ocean freight costs.
Bunge is investing in technology through the use of financial derivatives, including exchange traded and OTC swaps and options for various purposes, including to manage our exposure to volatility in energy costs and market prices.
Bunge is investing in R&D through the use of financial derivatives, including exchange traded and OTC swaps and options for various purposes, including to manage our exposure to volatility in energy costs and market prices.
Bunge is investing in digital transformation through the migration of certain of our financial reporting systems in Argentina to our South American Enterprise Resource Planning (ERP) system, a process that is expected to carry on for several months, and which may result in changes to our internal controls over financial reporting relating to our Argentinian operations.
Bunge repurchased 4,327,536 common shares for $488 million during the three and nine months ended September 30, 2023. This reflects a continued commitment to returning capital to shareholders.
Bunge announced that the Company's Board of Directors had declared a dividend of $0.6625 per common share, payable on December 1, 2023, to shareholders of record on November 17, 2023.
Bunge has secured a total of $8.0 billion in Acquisition Financing in the form of a $7.7 billion financing commitment from a consortium of lenders, arranged by Sumitomo Mitsui Banking Corporation and a $300 million 5-year delayed draw term loan from CoBank and the U.S. farm credit system executed July 7, 2023 that may be drawn upon the closing of the acquisition.
The Program includes sustainability provisions, pursuant to which the applicable margin will be increased or decreased based on Bunge's performance relative to certain sustainability targets, including, but not limited to, science-based targets that define Bunge's climate goals within its operations and a commitment to a deforestation-free supply chain in 2025.
Bunge is committed to eliminate deforestation in its supply chains in 2025. This is a key ESG initiative.
Bunge is managing the environmental impact of its operations through the use of financial derivatives, including exchange traded and OTC swaps and options for various purposes, including to manage our exposure to volatility in energy costs and market prices.
Bunge's operational activities in Ukraine have steadily increased during recent months, but remain limited and are subject to Bunge's ability to perform activities safely. Alternative routes to export product are being effectively utilized.
A significant downturn in global economic growth, or recessionary conditions in major geographic regions, may lead to reduced demand for agricultural commodities and food products, which could adversely affect our business and results of operations.
Inflationary factors generally affect us by increasing our labor and overhead costs, as well as costs associated with certain risks identified above, which may adversely affect our results of operations and financial position.