Global agribusiness giant Bunge reported a 91% jump in its 2020 third-quarter profit with strong soya processing margins and robust demand for soya products boosting its core activities, Reuters reported on 28 October.
The strong results, achieved despite the global challenges of COVID-19, led Bunge to raise its 2020 outlook and shares in the company rose almost 7% to their highest level in more than a year, Reuters said.
“We achieved record crush utilisation and captured exceptionally strong margins while supporting our customers and maintaining measures to protect the health of our employees,” Bunge’s chief executive officer Greg Heckman said.
“Looking into the next year, we expect many of the favourable trends to continue with demand for our products remaining strong. We also expect additional global demand for vegetable oil from the growth of biofuels.”
In the company’s oilseeds division, soya processing results were higher in South America, Europe and Asia, where margins had increased from strong meal and vegetable oil demand, partially offset by slightly lower results in the USA.
In edible oil products, Bunge said results had improved significantly from the second quarter, but were down from a previous strong year. Higher earnings in Brazil and Asia from improved demand in food processing and consumer retail sectors had been more than offset by lower earnings in North America and Europe.
The company said its improved outlook for its agribusiness reflected third quarter year-to-date results. In edible oils, adjusted results were expected to be up compared to last year due to the strong performance of its consumer businesses and growing biofuel demand.
Bunge is active globally in sourcing, processing and supplying oilseed and grain products and ingredients. Headquartered in St Louis, Missouri, the company operates more than 350 port terminals, oilseed processing plants, grain silos, and food and ingredient production and packaging facilities around the world.