ST. LOUIS - Bunge Limited (NYSE: NYSE:BG), an agribusiness and food company, reported its first quarter 2024 earnings, surpassing analyst expectations for adjusted earnings per share (EPS) but falling short on revenue.
The company announced an adjusted EPS of $3.04, higher than the analyst estimate of $2.54. However, revenue for the quarter was $13.42 billion, missing the consensus estimate of $13.96 billion.
The company's GAAP diluted EPS for the first quarter was $1.68, a significant decline from $4.15 in the previous year. On an adjusted basis, excluding certain gains, charges, and mark-to-market timing differences, the EPS was $3.04 compared to $3.26 a year ago. Net income attributable to Bunge was reported at $244 million, compared to $632 million in the same quarter last year.
Bunge's agribusiness segment saw higher processing results which were more than offset by lower results in merchandising. Refined and Specialty Oils also reported a decrease from a strong prior year. Despite these challenges, the company made significant progress on Viterra integration planning and other growth initiatives, including repurchasing $400 million of shares during the quarter.
Greg Heckman, Bunge's Chief Executive Officer, commented on the quarter's performance, stating, "We are pleased with our first quarter results, which reflect our team's strong execution in a more balanced market environment." He acknowledged the limited visibility into the latter half of the year but expressed confidence in the team's ability to remain agile and capture upcoming opportunities.
Looking ahead, Bunge maintains its adjusted full-year EPS outlook of approximately $9.00. The company expects similar full-year results in agribusiness compared to the previous outlook but down from last year, primarily due to lower results in processing where margins remain compressed in most regions. Full-year results in Refined and Specialty Oils are also anticipated to be similar to the previous outlook but down from the record prior year. Milling is expected to improve from last year, while Corporate and Other results are projected to be up from the previous year. The non-core segment, which includes the sugar and bioenergy joint venture, is forecasted to be significantly down from last year due to lower Brazilian ethanol prices.
Bunge's financial position remains strong, with cash provided by operations in the three months ending March 31, 2024, totaling $994 million compared to $931 million in the same period last year. The slight increase was driven by net changes in working capital, partially offset by lower reported net income. Adjusted funds from operations were $514 million compared to $625 million in the prior year.
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