Bunge Q1 Earnings Top Expectations Amid Fluctuations In Global Supplies And Consumer Behavior

  • Bunge Ltd BG reported a first-quarter FY23 sales decline of 3.5% year-on-year to $15.33 billion, beating the consensus of $14.78 billion.
  • The global agribusiness and food company registered an adjusted EPS of $3.26, down 23.5% Y/Y, which beat the analyst consensus of $3.24.
  • Fluctuations in global supplies and unfavorable consumer behavior weighed on Q1 net sales, dragging Agribusiness and Refined & Specialty Oils segment. However, favorable demand and effective supply chain management resulted in Street-beating performance in Q1. 
  • Also Read: Bunge Acquires Fuji Oil's Louisiana Refinery For Undisclosed Sum
  • Net sales from the Agribusiness segment declined 3.4% to $10.85 billion, and Refined & Specialty Oils fell 2.2% to $3.89 billion.
  • Gross profit decreased 1.9% Y/Y to $1.18 billion, margin up 12 bps to 7.70%.
  • The company held $3.05 billion in cash and equivalents as of Mar. 31, 2023.
  • "During the first quarter, we announced targeted but important actions to further improve our business capabilities, including entering collaborations to develop next generation seeds to meet the growing need for more sustainable crops, launching regenerative agriculture programs and acquiring a state-of-the art vegetable oil refinery in the U.S," said CEO Greg Heckman.
  • Outlook: Bunge reiterated its view for FY23. The company sees FY23 adjusted EPS of at least $11, against the consensus of $11.81.
  • Bunge expects to incur capital expenditures of $800 million - $1 billion.
  • In Agribusiness, the company forecasts full-year results to be down from last year as slightly higher results in Processing are more than offset by lower results in Merchandising. 
  • Price Action: BG shares closed lower by 1.50% at $91.15 on Tuesday.
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