Bunge Global SA Q3 FY2024 earnings call

Viterra Integration

• Teams working well on integration planning for the combination with Viterra, received EU conditional clearance, expect to close later this year or early 2025.

Strategic Priorities

• Completed sale of non-core sugar and bio-energy joint venture in Brazil to BP.

Financial Results

• Delivered solid adjusted EBIT in Q3, exceeded expectations; repurchased $200 million of Bunge shares.

Capital Allocation

• Year-to-date generated approx. $1.3 billion of adjusted funds from operations; allocated to sustaining capex, dividends, growth capex, and repurchased $600 million of shares; expect capex toward higher end of $1.2 billion to $1.4 billion range.

Operational Highlights

• U.S. plants had best soy crush performance for a crop year; year-to-date record volumes in global rapeseed crushing and refining; broke ground on palm and specialty oils facility in Avondale, Louisiana.

In agribusiness, processing results were $291 million in the third quarter, down from last year with higher results in South American and European soy crush offset by lower results in North America, European soft seeds, and Asia. In merchandising, higher results were driven by improved performance in financial services, ocean freight, and global oils, offsetting lower results in global grades; refined and specialty oils performed well but down from a strong prior year. In milling, slightly higher results in North America were offset by lower results in South America due to higher raw materials costs. Corporate and other improved from last year. The non-core sugar and bio-energy joint venture had higher sugar and ethanol volumes offset by higher operating costs, lower ethanol prices, and foreign exchange translation losses.

Full Year Outlook

• Expect full year adjusted EPS to be at least $9.25.

Q4 Adjustments

• Pulled approx. $0.15 of earnings from Q4 to Q3 due to market and customer uncertainty, and sale of sugar JV took approx. $0.15 out of Q4 forecast.

Capex

• Expect capex toward higher end of $1.2 billion to $1.4 billion range, or slightly above.

Other Metrics

• Adjusted annual effective tax rate range 22%-24%, net interest expense range $285M-$305M, depreciation and amortization approx. $450M.

• Regulatory approvals for Viterra combination still pending in jurisdictions like Canada, China; uncertainty around U.S. biofuel policy affecting fuel demand and feedstock supply; market volatility and shifting dynamics impacting margins in different regions.

Q: Andrew Strelzik on crush margins and Q4 guidance A: Greg and John discuss crush margins driven by good demand for meal and oil, with some regions having challenges, and Q4 adjustments due to market uncertainty and sugar JV sale Q: Salvatore Tiano on fuel customers and feedstock supply A: Greg and John talk about fuel demand globally, U.S. policy uncertainty, and feedstock supply considerations Q: Tom Palmer on Viterra and farmer selling A: Greg and John discuss Viterra integration confidence and farmer selling in South America timing Q: Manav Gupta on growth capex and Viterra timeline A: Greg talks about growth capex projects and Viterra integration planning progress Q: Heather Jones on bean oil, meal, and feed ratios A: Greg and John discuss bean oil export, meal demand, and feed ratio inclusion trends Q: Stephen Hayes on meal capacity and market absorption A: Greg and John talk about meal market and export capacity expansion plans Q: Ben Theurer on sugar disposal and Viterra approvals A: John and Greg discuss sugar disposal impact on earnings and Viterra regulatory approval status