Bunge Reports Fourth Quarter and Full-Year 2024 Results

Bunge Global SA (NYSE: BG) today reported fourth quarter and full-year 2024 results.

• Full-year GAAP diluted EPS of $7.99 vs. $14.87 in the prior year; $9.19 vs. $13.66 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences
• Q4 GAAP diluted EPS of $4.36 vs. $4.18 in the prior year; $2.13 vs. $3.70 on an adjusted basis excluding certain gains/charges and mark-to-market timing differences
• In Agribusiness lower Processing results partially offset by higher Merchandising
• Lower Refined and Specialty Oils results primarily driven by North America
• In late stages of regulatory processes for Viterra and CJ Selecta
• Made substantial progress during FY24 on growth investments and strategic partnerships as well as the divestiture of the sugar & bioenergy joint venture
• Repurchased $500 million of shares during Q4, bringing the YTD total to $1.1 billion
  
  

• Overview

Greg Heckman, Bunge’s Chief Executive Officer, commented, “Our team closed out a year of significant achievements for Bunge. We made great progress on integration planning for our announced combination with Viterra and, having received the vast majority of regulatory approvals, we expect to close the transaction soon. We continued to make productivity improvements from our investments in the business while returning significant capital to shareholders. And we took meaningful steps in sustainability by achieving our 100% traceability and monitoring targets in Brazil.

"While we didn't end the year as we expected and our forward visibility is limited by the increased geopolitical uncertainty, we are confident that the work we've done to further strengthen our business will allow us to continue to create value for all stakeholders. We look forward to using our more diverse platform across crops and geographies to connect farmers to consumers to deliver essential food, feed and fuel to the world."

• Financial Highlights

• Fourth Quarter and Full-Year 2024 Results

Core Segments

Agribusiness

Processing ⁽²⁾

Higher soy crush results in Europe and Asia were more than offset by lower results in North America and South America, as well as European softseeds. Results in the quarter included a business interruption insurance recovery of $38 million related to our Ukrainian operations.

Merchandising ⁽²⁾

Higher results were driven by improved performances in our financial services, ocean freight and global grains businesses, more than offsetting lower results in global oils. Results included a business interruption insurance recovery of $14 million related to our Ukrainian operations.

Refined & Specialty Oils

Refined & Specialty Oils Summary

Lower results in North America were primarily due to the combination of a more balanced supply and demand environment and uncertainty related to U.S. biofuel policies. While results in Europe, South America and Asia were also down due to lower margins, the variances were much narrower.

Milling

Milling Summary

Higher results in North America were more than offset by lower results in South America.

Corporate and Other

Corporate

Other

Corporate and Other Summary

The decrease in Corporate expenses was primarily driven by lower performance-based compensation and various project related expenses. Lower Other results were related to our captive insurance and securitization programs and Bunge Ventures.

Non-core Segments

Sugar & Bioenergy

Sugar & Bioenergy Summary

Lower results reflect only one month of income due to the recent sale of our interest in the sugar & bioenergy joint venture.

Cash Flow

Cash provided by operations during the year was $1,900 million compared to $3,308 million in the prior year. The reduction of cash provided by operating activities was primarily driven by lower reported net income and net changes in working capital. Adjusted funds from operations (FFO) was $1,682 million compared to $2,466 million in the prior year.⁽⁴⁾

Income Taxes

The decrease in income tax expense for both the quarter and full year was primarily due to lower pre-tax income and earnings mix. Adjusting for notable items and mark-to-market timing differences, the full year adjusted effective income tax rate was approximately 23% for both the current and prior year.⁽⁵⁾

• Outlook⁽⁶⁾

Taking into account the current margin and macro environment and forward curves, we are forecasting full-year 2025 adjusted EPS of approximately $7.75. This forecast excludes announced acquisitions that are expected to close during the year.

In Agribusiness, full-year results are forecasted to be down from last year due to lower results in Processing where higher results in South America are expected to be more than offset by lower results in North America and European softseeds. Results in Merchandising are forecasted to be down slightly from last year.

In Refined and Specialty Oils, full-year results are expected to be down from last year primarily driven by a more balanced supply and demand environment in North America.

In Milling, full-year results are expected to be up from last year.

In Corporate and Other, full-year results are expected to be up from last year.

Additionally, the Company expects the following for 2025: an adjusted annual effective tax rate in the range of 21% to 25%; net interest expense in the range of $250 to $280 million; capital expenditures in the range of $1.5 to $1.7 billion; and depreciation and amortization of approximately $490 million.

• Conference Call and Webcast Details

Bunge Global SA’s management will host a conference call at 8:00 a.m. Eastern (7:00 a.m. Central) on Wednesday, February 5, 2025 to discuss the Company’s results.

Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.

To access the webcast, go to “Events and presentations” under “News & Events” in the “Investor Center” section of the Company’s website. Select “Q4 2024 Bunge Global SA Conference Call” and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.

To listen to the call, please dial 1 (844) 735-3666. If you are located outside the United States or Canada, dial +1 (412) 317-5706. Please dial in five to 10 minutes before the scheduled start time. The call will also be webcast live at www.bunge.com.

A replay of the call will be available later in the day on February 5, 2025, continuing through March 5, 2025. To listen to it, please dial 1 (877) 344-7529 in the United States, 1 (855) 669-9658 in Canada, or 1 (412) 317-0088 in other locations. When prompted, enter confirmation code 6384373.

• About Bunge

At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to strengthen global food security, increase sustainability where we operate, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to develop tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company has its registered office in Geneva, Switzerland and its corporate headquarters in St. Louis, Missouri. We have approximately 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

• Website Information

We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, U.S. Securities and Exchange Commission ("SEC") filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

• Cautionary Statement Concerning Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward looking statements to encourage companies to provide prospective information to investors. This press release includes forward looking statements that reflect our current expectations and projections about our future results, performance, prospects and opportunities. Forward looking statements include all statements that are not historical in nature. We have tried to identify these forward looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward looking statements. The following factors, among others, could cause actual results to differ from these forward looking statements:

• the impact on our employees, operations, and facilities from the war in Ukraine and the resulting economic and other sanctions imposed on Russia, including the impact on us resulting from the continuation and/or escalation of the war and sanctions against Russia;
• the effect of weather conditions and the impact of crop and animal disease on our business;
• the impact of global and regional economic, agricultural, financial and commodities market, political, social and health conditions;
• changes in government policies and laws affecting our business, including agricultural and trade policies, financial markets regulation and environmental, tax and biofuels regulation;
• the impact of seasonality;
• the impact of government policies and regulations;
• the outcome of pending regulatory and legal proceedings;
• our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances, including without limitation Bunge’s pending business combination with Viterra Limited (“Viterra”);
• the impact of industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products that we sell and use in our business, fluctuations in energy and freight costs and competitive developments in our industries;
• the effectiveness of our capital allocation plans, funding needs and financing sources;
• the effectiveness of our risk management strategies;
• operational risks, including industrial accidents, natural disasters, pandemics or epidemics, wars and cybersecurity incidents;
• changes in foreign exchange policy or rates;
• the impact of our dependence on third parties;
• our ability to attract and retain executive management and key personnel; and
• other factors affecting our business generally.

The forward looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward looking statements to reflect subsequent events or circumstances.

You should refer to "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024.

• Additional Financial Information

Certain gains and (charges), quarter-to-date

The following tables provide a summary of certain gains and (charges) that may be of interest to investors, including a description of these items and their effect on Net income (loss) attributable to Bunge, Earnings per share diluted and EBIT for the three month periods ended December 31, 2024 and 2023.

Core Segments

Agribusiness

EBIT for the quarter ended December 31, 2024 included $6 million in insurance recoveries, in Cost of goods sold, related to certain previously damaged property as a result of the Ukraine-Russia war.

EBIT for the quarter ended December 31, 2023 included a $37 million fixed asset impairment charge in North America recorded in Cost of goods sold.

Refined and Specialty Oils

EBIT for the quarter ended December 31, 2023 included accelerated amortization charges of $17 million, at Bunge's 80% share, in SG&A, primarily related to the discontinuance of the Loders Croklaan trademark.

Corporate and Other

The following is a summary of acquisition and integration costs related to the announced business combination agreement with Viterra recorded in the Company's Consolidated Statements of Income (Loss).

Non-core Segment

Sugar & Bioenergy

EBIT for the quarter ended December 31, 2024 included a $195 million gain on the sale of Bunge's 50% ownership share in BP Bunge Bioenergia, recorded in Other income (expense) - net.

Certain gains and (charges), year-to-date

The following tables provide a summary of certain gains and (charges) that may be of interest to investors, including a description of these items and their effect on Net income (loss) attributable to Bunge, Earnings per share diluted and EBIT for the years ended December 31, 2024 and 2023.

Core Segments

Agribusiness

EBIT for the year ended December 31, 2024 included a $19 million impairment charge, in Income (loss) from affiliates, related to a minority investment in North America.

EBIT for the year ended December 31, 2024 included $6 million in insurance recoveries, in Cost of goods sold, related to certain previously damaged property as a result of the Ukraine-Russia war.

EBIT for the year ended December 31, 2023 included mark-to-market gain of $29 million, in Cost of goods sold, related to inventory recovered from our Mykolaiv and other facilities in Ukraine. The circumstances allowing for recovery of these inventories did not exist and were unforeseeable when the inventory reserves were initially recorded in 2022 in conjunction with the Ukraine-Russia war.

EBIT for the year ended December 31, 2023 included a $37 million fixed asset impairment charge in North America recorded in Cost of goods sold.

Refined and Specialty Oils

EBIT for the year ended December 31, 2023 included accelerated amortization charges of $17 million, at Bunge's 80% share, in SG&A, primarily related to the discontinuance of the Loders Croklaan trademark.

Corporate and Other

The following is a summary of acquisition and integration costs related to the announced business combination agreement with Viterra recorded in the Company's Consolidated Statements of Income (Loss).

EBIT for the year ended December 31, 2023 included a $20 million impairment charge, in Other Income (expense) - net, related to the full impairment of a long-term investment held in Other non-current assets.

EBIT for the year ended December 31, 2023 included a $16 million impairment charge, in Income (loss) from affiliates, related to a minority investment in Australian Plant Proteins, a start-up manufacturer of novel protein ingredients.

Non-core Segment

Sugar & Bioenergy

EBIT for the year ended December 31, 2024 included a $195 million gain on the sale of Bunge's 50% ownership share in BP Bunge Bioenergia, recorded in Other income (expense) - net.

• Consolidated Earnings Data (Unaudited)
  
  

• Condensed Consolidated Balance Sheets (Unaudited)
  
  

• Condensed Consolidated Statements of Cash Flows (Unaudited)
  
  

• Definition and Reconciliation of Non-GAAP Measures

This earnings release contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures below. These measures may not be comparable to similarly titled measures used by other companies.

Total EBIT and Adjusted Total EBIT

Bunge uses earnings before interest and tax (“EBIT”) to evaluate the operating performance of its individual reportable segments as well as Corporate and Other results. Total EBIT excludes EBIT attributable to noncontrolling interests. Bunge also uses Core Segment EBIT, Non-core Segment EBIT, Corporate and Other EBIT and Total EBIT to evaluate the operating performance of Bunge’s Core reportable segments, Non-core reportable segments and Total reportable segments together with Corporate and Other activities. Core Segment EBIT is the aggregate of the earnings before interest and taxes of each of Bunge’s Agribusiness, Refined and Specialty Oils, and Milling segments. Non-core Segment EBIT is the earnings before interest and taxes of Bunge’s Sugar & Bioenergy segment. Total EBIT is the aggregate of the earnings before interest and taxes of Bunge’s Core and Non-core reportable segments, together with its Corporate and Other activities.

Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, Adjusted Corporate and Other EBIT and Adjusted Total EBIT, are calculated by excluding temporary mark-to-market timing differences, as defined in note 3 below, and certain gains and (charges), as described in "Additional Financial Information" above, from Core Segment EBIT, Non-Core Segment EBIT, Corporate and Other EBIT, and Total EBIT, respectively.

Core Segment EBIT, Non-core Segment EBIT, Corporate and Other EBIT, Total EBIT, Adjusted Core Segment EBIT, Adjusted Non-core Segment EBIT, Adjusted Corporate and Other EBIT and Adjusted Total EBIT are non-GAAP financial measures and are not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Bunge's management believes these non-GAAP measures are a useful measure of its operating profitability, since the measures allow for an evaluation of performance without regard to financing methods or capital structure. For this reason, operating performance measures such as these non-GAAP measures are widely used by analysts and investors in Bunge's industries. These non-GAAP measures are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP.

Net income (loss) attributable to Bunge to Adjusted Net income (loss) attributable to Bunge

Adjusted Net Income (loss) excludes temporary mark-to-market timing differences, as defined in note 3 below, and certain gains and (charges), as described in "Additional Financial Information" above, and is a non-GAAP financial measure. This measure is not a measure of Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. It should not be considered as an alternative to Net Income (loss) attributable to Bunge, Net Income (loss), or any other measure of consolidated operating results under U.S. GAAP. Bunge's management believes Adjusted Net income (loss) is a useful measure of the Company's profitability.

We also have presented projected Adjusted Net income per share for 2025. This information is provided only on a non-GAAP basis without reconciliation to projected Net Income per share for 2025, the most directly comparable U.S. GAAP measure. The most directly comparable U.S. GAAP measure has not been provided due to the inability to quantify certain amounts necessary for such reconciliation, including but not limited to potentially significant future market price movements over the remainder of the year.

Below is a reconciliation of Net income (loss) attributable to Bunge, to Total EBIT, and Adjusted Total EBIT: