Global agribusiness giant Bunge has announced stronger than expected first quarter results.
While the company’s Agribusiness sector continues to adapt to rapidly changing market conditions, its Refined and Specialty Oils business is benefiting from favourable demand trends, according to the 27 April statement.
Bunge net income for the first quarter ended March 31 was US$689M, down from US$831M in the same period last year, while sales totalled totalled US$15.88 bn, up from last year’s figure of US$12.96bn.
The strong first quarter led Bunge to raise its full year adjusted earnings per share (EPS) to at least US$11.50, up from its January forecast of US$9.50.
“In Agribusiness, full-year results are expected to be higher than our previous outlook, but still forecasted to be down from last year. While we are not forecasting the same magnitude of margin-enhancing opportunities that we captured during 2021, we do see potential upside to our outlook if strong demand and tight commodity supplies continue,” the company said in its statement.
“In Refined and Specialty Oils, full-year results are expected to be up from our previous outlook and higher than last year, driven by strong demand from food and fuel in our North American and European businesses.”
During the first quarter of fiscal 2022, segment earnings before interest and taxes (EBIT) for the Agribusiness sector totalled US$699M, down from US$836M in the same period last year. Adjusted segment EBIT, however, was US$627M in the first quarter of 2022, up from US$601M in the same period a year ago. Sales increased 15% to US$11.23bn from US$9.79bn, while volumes fell to 20.07M tonnes from 21.64M tonnes a year ago.
In the Refined and Specialty Oils segment, although EBIT at US$173M was down from US$308M the previous year, adjusted segment EBIT was US$180M, up from US$124M a year ago. Sales were US$3.98bn, up 46% from US$2.73bn, while volumes were 2.3M tonnes, up from 2.18M tonnes.
