Bunge Limited (NYSE:BG) today reported first quarter 2022
results
- Q1 GAAP EPS of $4.48 vs. $5.52 in the prior year; $4.26 vs.
$3.13 on an adjusted basis excluding certain gains/charges and
mark-to-market timing differences
- Agribusiness continues to adapt to dynamic, rapidly changing
market conditions while connecting farmers to global
consumers
- Refined and Specialty Oils benefiting from favorable demand
trends, as well as supply chain and innovation
capabilities
- Increasing full-year adjusted EPS outlook to at least $11.50
based on stronger than expected Q1 results and current forward
crush curves
Greg Heckman, Bunge's Chief Executive Officer, commented, “I am
very proud of our team’s continued agility and dedication to
ensuring key food, feed and fuel products are getting from farmers
to consumers as we navigate this unprecedented global market,
further intensified by the war in Ukraine. In addition to our
corporate humanitarian contributions, our global team continues to
actively support our colleagues in the region during this difficult
time, including volunteering to assist displaced colleagues and
their families with shelter, food and other critical needs.
"From a business standpoint, the changes we’ve made to our
operating model have enabled us to provide innovative solutions to
our customers on both ends of the supply chain and help them
respond to the highly dynamic and challenging environment. While we
expect market conditions to continue shifting, I am confident we
have the right team and platform in place to execute our critical
role in the global agriculture and food supply chains.”
Three Months Ended
March 31,
(US$ in millions, except per share
data)
2022
2021
Net income attributable to
Bunge
$
688
$
831
Net income per common
share-diluted
$
4.48
$
5.52
Mark-to-market timing difference (a)
$
(0.40
)
$
(1.30
)
Certain (gains) and charges (b)
$
0.18
$
(1.09
)
Adjusted Net income per common
share-diluted (c)
$
4.26
$
3.13
Core Segment EBIT (c) (d)
$
922
$
1,152
Mark-to-market timing difference (a)
(76
)
(245
)
Certain (gains) & charges (b)
12
(170
)
Adjusted Core Segment EBIT (c)
$
858
$
737
Corporate and Other EBIT (c)
$
(63
)
$
(86
)
Certain (gains) & charges (b)
(29
)
—
Adjusted Corporate and Other EBIT
(c)
$
(92
)
$
(86
)
Non-core Segment EBIT (c) (e)
$
34
$
20
Certain (gains) & charges (b)
—
—
Adjusted Non-core Segment EBIT
(c)
$
34
$
20
Total Segment EBIT (c)
$
893
$
1,086
Mark-to-market timing difference (a)
(76
)
$
(245
)
Total Certain (gains) & charges
(b)
(17
)
$
(170
)
Adjusted Total Segment EBIT (c)
$
800
$
671
(a)
Mark-to-market timing impact of certain
commodity and freight contracts, readily marketable inventories,
and related hedges associated with committed future operating
capacity. See note 3 in the Additional Financial information
section of this release for details.
(b)
Certain (gains) & charges included in
Total Segment EBIT. See Additional Financial Information for
details.
(c)
Core Segment EBIT, Adjusted Core Segment
EBIT, Corporate and Other EBIT, Adjusted Corporate and Other EBIT,
Non-core Segment EBIT, Adjusted Non-core Segment EBIT, Total
Segment EBIT, Adjusted Total Segment EBIT, and Adjusted Net income
per common share-diluted are non-GAAP financial measures.
Reconciliations to the most directly comparable U.S. GAAP measures
are included in the tables attached to this press release and the
accompanying slide presentation posted on Bunge's website.
(d)
Core Segment earnings before interest and
tax ("Core Segment EBIT") comprises the aggregate earnings before
interest and tax (“EBIT”) of Bunge’s Agribusiness, Refined and
Specialty Oils and Milling reportable segments, and excludes
Bunge's Sugar & Bioenergy reportable segment and Corporate and
Other activities.
(e)
Non-core Segment EBIT comprises Bunge’s
Sugar & Bioenergy reportable segment EBIT, which reflects
Bunge's share of the results of its 50/50 joint venture with BP
p.l.c.
Core Segments
Agribusiness
Three Months Ended
(US$ in millions, except per share
data)
Mar 31, 2022
Mar 31, 2021
Volumes (in thousand metric
tons)
20,070
21,644
Net Sales
$
11,231
$
9,791
Gross Profit
$
864
$
886
Selling, general and administrative
expense
$
(121
)
$
(80
)
Foreign exchange gains (losses)
$
9
$
(8
)
EBIT attributable to noncontrolling
interests
$
(4
)
$
(8
)
Other income (expense) - net
$
(63
)
$
22
Income (loss) from affiliates
$
14
$
24
Segment EBIT
$
699
$
836
Mark-to-market timing difference
(83
)
(235
)
Certain (gains) & charges
11
—
Adjusted Segment EBIT
$
627
$
601
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
9
$
—
Certain (gains) & charges, Earnings
per share
$
0.06
$
—
Processing (2)
Three Months Ended
(US$ in millions)
Mar 31, 2022
Mar 31, 2021
Processing EBIT
$
551
$
729
Mark-to-market timing difference
(98
)
(366
)
Certain (gains) & charges
8
—
Adjusted Processing EBIT
$
461
$
363
Higher soy crush results in the U.S., Europe and Brazil, which
benefited from improved margins due to strong demand, were
partially offset by lower softseed crush results in Europe and
China, which were negatively impacted by tight seed supplies and
higher costs.
Merchandising (2)
Three Months Ended
(US$ in millions)
Mar 31, 2022
Mar 31, 2021
Merchandising EBIT
$
148
$
107
Mark-to-market timing difference
15
131
Certain (gains) & charges
3
—
Adjusted Merchandising EBIT
$
166
$
238
Merchandising had a good quarter, however, results were down
compared to a particularly strong prior year, primarily due to
lower results in our global grains and financial services
operations.
Refined & Specialty Oils
Three Months Ended
(US$ in millions, except per share
data)
Mar 31, 2022
Mar 31, 2021
Volumes (in thousand metric
tons)
2,296
2,177
Net Sales
$
3,976
$
2,726
Gross Profit
$
262
$
235
Selling, general and administrative
expense
$
(89
)
$
(86
)
Foreign exchange gains (losses)
$
—
$
2
EBIT attributable to noncontrolling
interests
$
3
$
(79
)
Other income (expense) - net
$
(3
)
$
236
Segment EBIT
$
173
$
308
Mark-to-market timing difference
6
(14
)
Certain (gains) & charges
1
(170
)
Adjusted Segment EBIT
$
180
$
124
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
1
$
(165
)
Certain (gains) & charges, Earnings
per share
$
0.01
$
(1.09
)
Refined & Specialty Oils Summary
Higher results in the quarter were largely driven by improved
margins and volumes in North America, which benefited from strong
food and fuel demand. Results in other regions were slightly lower
compared to the prior year.
Milling
Three Months Ended
(US$ in millions, except per share
data)
Mar 31, 2022
Mar 31, 2021
Volumes (in thousand metric
tons)
1,161
1,041
Net Sales
$
603
$
390
Gross Profit
$
71
$
34
Selling, general and administrative
expense
$
(24
)
$
(23
)
Foreign exchange gains (losses)
$
3
$
(3
)
Segment EBIT
$
50
$
8
Mark-to-market timing difference
1
4
Certain (gains) & charges
—
—
Adjusted Segment EBIT
$
51
$
12
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
Milling Summary
Higher results in the quarter were driven by improved margins
and volumes in the U.S. and South America. In South America,
effective management of our supply chain also contributed to the
improved performance.
Corporate and Other
Three Months Ended
(US$ in millions, except per share
data)
Mar 31, 2022
Mar 31, 2021
Gross Profit
$
5
$
(8
)
Selling, general and administrative
expense
$
(74
)
$
(82
)
Foreign exchange gains (losses)
$
—
$
(1
)
EBIT attributable to noncontrolling
interests
$
(12
)
$
—
Other income (expense) - net
$
19
$
5
Segment EBIT
$
(63
)
$
(86
)
Certain (gains) & charges
(29
)
—
Adjusted Segment EBIT
$
(92
)
$
(86
)
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
18
$
—
Certain (gains) & charges, Earnings
per share
$
0.11
$
—
Corporate
Three Months Ended
(US$ in millions)
Mar 31, 2022
Mar 31, 2021
Corporate EBIT
$
(46
)
$
(86
)
Certain (gains) & charges
(29
)
—
Adjusted Corporate EBIT
$
(75
)
$
(86
)
Other
Three Months Ended
(US$ in millions)
Mar 31, 2022
Mar 31, 2021
Other EBIT
$
(17
)
$
—
Certain (gains) & charges
—
—
Adjusted Other EBIT
$
(17
)
$
—
Corporate and Other Summary
The decrease in Corporate expenses during the quarter was
primarily related to the timing of performance-based compensation
accruals. The loss in Other was related to Bunge Venture’s
investment in Benson Hill.
Non-core Segments
Sugar & Bioenergy
Three Months Ended
(US$ in millions, except per share
data)
Mar 31, 2022
Mar 31, 2021
Net Sales
$
64
$
54
Gross Profit
$
2
$
—
Income (loss) from affiliates
$
32
$
20
Segment EBIT
$
34
$
20
Certain (gains) & charges
—
—
Adjusted Segment EBIT
$
34
$
20
Certain (gains) & charges, Net income
(loss) attributable to Bunge
$
—
$
—
Certain (gains) & charges, Earnings
per share
$
—
$
—
Sugar & Bioenergy Summary
Results in the quarter were primarily driven by strong Brazilian
ethanol prices.
Cash Flow
Three Months Ended
Mar 31, 2022
Mar 31, 2021
Cash used for operating activities
$
(2,656
)
$
(987
)
Net proceeds from beneficial interest in
securitized trade receivables
1,613
969
Cash provided by (used for) operating
activities, adjusted
$
(1,043
)
$
(18
)
Cash used for operations in the three months ended March 31,
2022 was $2,656 million compared to cash used of $987 million in
the same period last year. Adjusting for the net proceeds from
beneficial interest in securitized trade receivables, cash used for
operating activities was $1,043 million compared with cash used for
operating activities of $18 million in the prior year. Cash used
for operating activities was driven by an increase in working
capital primarily as a result of higher commodity prices. Funds
from operations (FFO) adjusted for notable items and mark-to-market
timing differences was $696 million compared to $533 million in the
prior year.(4)
Income Taxes
For the three months ended March 31, 2022, income tax expense
was $108 million compared to $192 million in the prior year. The
decrease in income tax expense was primarily due to lower pre-tax
income, releases of valuation allowances in Europe and Asia and tax
benefits associated with equity compensation payments.
Bunge continues to closely monitor developments related to the
pandemic to ensure the health and safety of its employees. While
most facilities have been able to return at or near normal
operations, the Company’s internal task force is prepared to
re-establish safety measures and protocols should infection rates
increase.
Bunge continues to monitor local, regional and national
governmental actions that could limit or restrict the movement of
agricultural commodities or products or otherwise disrupt physical
product flows or its ability to operate in the future.
We are increasing our full-year 2022 EPS outlook to reflect our
strong first quarter and current market environment. We are now
forecasting full-year 2022 adjusted EPS of at least $11.50 per
share.
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.
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.
In Milling, full-year results are expected to be up from our
previous outlook and significantly higher than last year, primarily
due to our strong first quarter results.
In Corporate and Other, results are now expected to be more
favorable than last year.
In Non-Core, full-year results in the sugar and bioenergy joint
venture are expected to be in line with last year.
Additionally, the Company now expects the following for 2022: an
adjusted annual effective tax rate in the range of 16% to 18%; net
interest expense in the range of $250 to $270 million; capital
expenditures in the range of $650 to $750 million; and depreciation
and amortization of approximately $420 million.
- Conference Call and Webcast Details
Bunge Limited’s management will host a conference call at
8:00a.m. Eastern (7:00a.m. Central) on Wednesday, April 27, 2022 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” in the
“Investors” section of the company’s website. Select “Q1 2022 Bunge
Limited Earnings 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 April
27, 2022, continuing through May 27, 2022. 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 1384510. A replay will also be available in
"Past events" at "Events and presentations" in the "Investors"
section of the company's website.
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 put quality food on the
table, increase sustainability where we operate, strengthen global
food security, 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 improve the productivity and environmental efficiency of
agriculture across our value chains and to bring quality products
from where they’re grown to where they’re consumed. At the same
time, we collaborate with our customers to create and reimagine the
future of food, developing tailored and innovative solutions to
meet evolving dietary needs and trends in every part of the world.
Our Company is headquartered in St. Louis, Missouri, and we have
more than 22,000 dedicated employees working across approximately
300 facilities located in more than 40 countries.
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, 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
This press release contains both historical and forward-looking
statements. All statements, other than statements of historical
fact are, or may be deemed to be, forward looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (Exchange Act). These forward looking statements are not
based on historical facts, but rather reflect our current
expectations and projections about our future results, performance,
prospects and opportunities. 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 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 important factors, among others,
could cause actual results to differ from these forward-looking
statements: the impact on our operations and facilities from the
military conflict in Ukraine and the resulting economic and other
sanctions imposed on Russia, including the impact on Bunge
resulting from a continuation and/or escalation of the conflict and
sanctions against Russia; industry conditions, including
fluctuations in supply, demand and prices for agricultural
commodities and other raw materials and products used in our
business, fluctuations in energy and freight costs; competitive
developments in our industries; the effects of weather conditions
and the outbreak of crop and animal disease on our business; global
and regional economic, agricultural, financial and commodities
market, political, social and health conditions; the impacts of
pandemic outbreaks, including COVID-19; the outcome of pending
regulatory and legal proceedings; our ability to complete,
integrate and benefit from acquisitions, dispositions, joint
ventures and strategic alliances; the impact of government policies
and regulations; changes in government policies, laws and
regulations affecting our business, including agricultural and
trade policies and environmental, tax and biofuels regulation; the
impact of seasonality; our capital allocation plans, funding needs
and financing sources; changes in foreign exchange policy or rates;
the effectiveness of our risk management strategies; our ability to
attract and retain executive management and key personnel; the
impact of our dependence on third parties; operational risks,
including industrial accidents, natural disasters and cybersecurity
incidents; 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.
- Additional Financial Information
Certain gains and (charges)
The following table provides 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 Segment EBIT
for the three month periods ended March 31, 2022 and 2021.
(US$ in millions, except per share
data)
Net Income (Loss) Attributable
to Bunge
Earnings Per Share
Diluted
Segment EBIT
Quarter Ended March 31,
2022
2021
2022
2021
2022
2021
Core Segments:
$
(10
)
$
165
$
(0.07
)
$
1.09
$
(12
)
$
170
Agribusiness
$
(9
)
$
—
$
(0.06
)
$
—
$
(11
)
$
—
Ukraine-Russia Conflict
(9
)
—
(0.06
)
—
(11
)
—
Refined and Specialty Oil
Products
$
(1
)
$
165
$
(0.01
)
$
1.09
$
(1
)
$
170
Ukraine-Russia Conflict
(1
)
—
(0.01
)
—
(1
)
—
Gain on sale of assets
—
165
—
1.09
—
170
Milling Products
$
—
$
—
$
—
$
—
$
—
$
—
Corporate and Other:
$
(18
)
$
—
$
(0.11
)
$
—
$
29
$
—
Pension settlement
21
—
0.14
—
29
—
Bond early redemption
(39
)
—
(0.25
)
—
—
—
Non-core Segment:
$
—
$
—
$
—
$
—
$
—
$
—
Sugar & Bioenergy
$
—
$
—
$
—
$
—
$
—
$
—
Total
$
(28
)
$
165
$
(0.18
)
$
1.09
$
17
$
170
See Definition and Reconciliation of
Non-GAAP Measures.
Core Segments
Agribusiness
EBIT for the three months ended March 31, 2022 included $11
million of charges resulting from the Ukraine-Russia conflict,
primarily related to misappropriated inventory and damaged
property, plant and equipment, recorded in Cost of goods sold.
Refined and Specialty Oils
EBIT for the three months ended March 31, 2022 included a $1
million charge resulting from the Ukraine-Russia conflict, related
to a bad debt provision, recorded in SG&A.
EBIT for the three months ended March 31, 2021 included $170
million in gains on sales of assets, comprised of a $151 million
gain on sale of our Rotterdam Oils Refinery, at Bunge's 70% share,
and a $19 million gain on sale of an oils packaging facility in
Mexico, both recorded in Other income (expense) - net.
Corporate and Other
EBIT for the three months ended March 31, 2022 included a $29
million gain, at Bunge's 70% share, related to the settlement of
one of the Company’s international defined benefit pension plans,
recorded in Other income (expense) - net.
Net income for the three months ended March 31, 2022 also
included $39 million of expense (net of $8 million in tax benefits)
related to the early redemption of the Company's 4.350% unsecured
senior notes due March 15, 2024. In connection with the early
redemption, the Company recorded a $47 million pre-tax charge
within Interest expense, comprising a $31 million "make-whole"
payment and a $16 million loss on the termination and
de-designation of related interest rate hedges.
- Consolidated Earnings Data (Unaudited)
Three Months Ended
March 31,
(US$ in millions, except per share
data)
2022
2021
Net sales
$
15,880
$
12,961
Cost of goods sold
(14,676
)
(11,814
)
Gross profit
1,204
1,147
Selling, general and administrative
expenses
(308
)
(271
)
Foreign exchange (losses) gains
12
(10
)
Other income (expense) – net
(47
)
263
Income (loss) from affiliates
45
44
EBIT attributable to noncontrolling
interest (a) (1)
(13
)
(87
)
Total Segment EBIT
893
1,086
Interest income
9
9
Interest expense
(111
)
(73
)
Income tax (expense) benefit
(108
)
(192
)
Noncontrolling interest share of interest
and tax (a) (1)
5
1
Net income (loss) attributable to Bunge
(1)
688
831
Convertible preference share dividends
—
(8
)
Net income (loss) available to Bunge
common shareholders
$
688
$
823
Add back convertible preference share
dividends
—
8
Net income (loss) available to Bunge
common shareholders - diluted
$
688
$
831
Net income (loss) per common share
diluted attributable to Bunge common shareholders
$
4.48
$
5.52
Weighted–average common shares
outstanding - diluted
154
151
(a) The line items "EBIT attributable to
noncontrolling interest" and "Noncontrolling interest share of
interest and tax" when combined, represent consolidated Net
(income) loss attributable to noncontrolling interests on a U.S.
GAAP basis of presentation.
- Condensed Consolidated Balance Sheets (Unaudited)
March 31,
December 31,
(US$ in millions)
2022
2021
Assets
Cash and cash equivalents
$
386
$
902
Trade accounts receivable, net
2,564
2,112
Inventories (a)
10,988
8,431
Assets held for sale
285
264
Other current assets
6,667
4,751
Total current assets
20,890
16,460
Property, plant and equipment, net
3,561
3,499
Operating lease assets
994
912
Goodwill and other intangible assets,
net
913
915
Investments in affiliates
898
764
Other non-current assets
1,468
1,269
Total assets
$
28,724
$
23,819
Liabilities and Equity
Short-term debt
$
1,937
$
673
Current portion of long-term debt
503
504
Trade accounts payable
5,836
4,250
Current operating lease obligations
377
350
Liabilities held for sale
113
122
Other current liabilities
5,094
3,425
Total current liabilities
13,860
9,324
Long-term debt
4,040
4,787
Non-current operating lease
obligations
559
506
Other non-current liabilities
1,154
996
Total liabilities
19,613
15,613
Redeemable noncontrolling
interest
370
381
Total equity
8,741
7,825
Total liabilities, redeemable
noncontrolling interest and equity
$
28,724
$
23,819
(a) Includes readily marketable
inventories of $8,875 million and $6,869 million at March 31, 2022
and December 31, 2021, respectively. Of these amounts, $6,651
million and $4,857 million, respectively, can be attributable to
merchandising activities.
- Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(US$ in millions)
2022
2021
Operating Activities
Net income (loss) (1)
$
696
$
917
Adjustments to reconcile net income (loss)
to cash provided by (used for) operating activities:
Foreign exchange (gain) loss on net
debt
(116
)
(25
)
Depreciation, depletion and
amortization
102
106
Deferred income tax expense (benefit)
(54
)
36
(Gain) loss on sale of investments and
property, plant and equipment
(1
)
(239
)
Other, net
23
(6
)
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
Trade accounts receivable
(392
)
(617
)
Inventories
(2,350
)
(1,448
)
Secured advances to suppliers
(52
)
5
Trade accounts payable and accrued
liabilities
1,167
1,134
Advances on sales
(30
)
(69
)
Net unrealized (gain) loss on derivative
contracts
213
100
Margin deposits
(388
)
282
Marketable securities
243
64
Beneficial interest in securitized trade
receivables
(1,637
)
(1,027
)
Other, net
(80
)
(200
)
Cash provided by (used for) operating
activities
(2,656
)
(987
)
Investing Activities
Payments made for capital expenditures
(106
)
(53
)
Proceeds from investments
18
—
Payments for investments
(54
)
(88
)
Settlement of net investment hedges
(1
)
(9
)
Proceeds from beneficial interest in
securitized trade receivables
1,613
969
Proceeds from the sale of investments and
property, plant and equipment
—
331
Payments for investments in affiliates
—
(35
)
Other, net
(22
)
—
Cash provided by (used for) investing
activities
1,448
1,115
Financing Activities
Net borrowings (repayments) of short-term
debt
1,301
(89
)
Net proceeds (repayments) of long-term
debt
(571
)
—
Proceeds from the exercise of options for
common shares
32
44
Dividends paid to common and preference
shareholders
(82
)
(79
)
Acquisition of noncontrolling interest
—
(147
)
Other, net
28
(19
)
Cash provided by (used for) financing
activities
708
(290
)
Effect of exchange rate changes on cash
and cash equivalents and restricted cash
1
33
Net increase (decrease) in cash and
cash equivalents and restricted cash
(499
)
(129
)
Cash and cash equivalents and
restricted cash - beginning of period
905
381
Cash and cash equivalents and
restricted cash - end of period
$
406
$
252
- 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 Segment EBIT and Adjusted Total Segment EBIT
Bunge uses segment earnings before interest and tax (“Segment
EBIT”) to evaluate the operating performance of its individual
segments. Segment EBIT excludes EBIT attributable to noncontrolling
interests. Bunge also uses Core Segment EBIT, Non-Core Segment EBIT
and Total Segment EBIT to evaluate the operating performance of
Bunge’s Core reportable segments, Non-Core reportable segments, and
Total reportable segments together with its corporate and other
activities, respectively. 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 Segment 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, and
Adjusted Total Segment 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,
and Total Segment EBIT, respectively.
Core Segment EBIT, Non-Core Segment EBIT, Total Segment EBIT,
Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, and
Adjusted Total Segment 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 reportable segments' operating profitability, since the
measures allow for an evaluation of segment performance without
regard to their 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) available for common shareholders
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. Adjusted Net income (loss) is a
useful measure of the Company's profitability.
We also have presented projected adjusted net income per common
share for 2022. This information is provided only on a non-GAAP
basis without reconciliation to projected net income per common
share for 2022, the mostly directly comparable GAAP measure, due to
the inability at this time to quantify certain amounts necessary
for such reconciliation, including but not limited to future market
price movements over the remainder of the year.
Below is a reconciliation of Net income attributable to Bunge,
to Total Segment EBIT, and Adjusted Total Segment EBIT:
Three Months Ended
March 31,
(US$ in millions)
2022
2021
Net income (loss) attributable to
Bunge
$
688
$
831
Interest income
(9
)
(9
)
Interest expense
111
73
Income tax expense (benefit)
108
192
Noncontrolling interest share of interest
and tax
(5
)
(1
)
Total Segment EBIT
$
893
$
1,086
Agribusiness EBIT
$
699
$
836
Refined and Specialty Oils EBIT
173
308
Milling EBIT
50
8
Core Segment EBIT
$
922
$
1,152
Corporate and Other EBIT
$
(63
)
$
(86
)
Sugar & Bioenergy EBIT
$
34
$
20
Non-Core Segment EBIT
$
34
$
20
Total Segment EBIT
$
893
$
1,086
Mark-to-market timing difference
(76
)
(245
)
Certain (gains) & charges
(17
)
(170
)
Adjusted Total Segment EBIT
$
800
$
671
Below is a reconciliation of Net income attributable to Bunge,
to Adjusted Net income (loss) available for common
shareholders:
Three Months Ended
March 31,
(US$ in millions, except per share
data)
2022
2021
Net income (loss) attributable to
Bunge
$
688
$
831
Mark-to-market timing difference
(62
)
(195
)
Certain (gains) and charges:
Ukraine-Russia conflict
10
—
Pension settlement
(21
)
—
Bond early redemption
39
—
Gain on sales of assets
—
(165
)
Adjusted Net income (loss) available
for common shareholders
$
654
$
471
Weighted-average common shares outstanding
- diluted, adjusted (a)
154
151
Adjusted Net income (loss) per common
share - diluted
$
4.26
$
3.13
(a) Approximately zero and 2 million
outstanding stock options and contingently issuable restricted
stock units were not dilutive and not included in the
weighted-average number of common shares outstanding for the three
months ended March 31, 2022 and 2021, respectively.
(1)
A reconciliation of Net income (loss)
attributable to Bunge, to Net income (loss) is as follows:
Three months ended March
31,
(US$ in millions)
2022
2021
Net income (loss) attributable to
Bunge
$
688
$
831
EBIT attributable to noncontrolling
interest
13
87
Noncontrolling interest share of interest
and tax
(5
)
(1
)
Net income (loss)
$
696
$
917
(2)
The Processing business included in our
Agribusiness segment consists of: global oilseed processing
activities, which principally include the origination and crushing
of oilseeds (including soybeans, canola, rapeseed and sunflower
seed) into protein meals and vegetable oils; the distribution of
oilseeds, oilseed products and fertilizer products through our port
terminals and transportation assets (including trucks, railcars,
barges and ocean vessels); fertilizer production; and biodiesel
production, which is partially conducted through joint
ventures.
The Merchandising business included in our
Agribusiness segment primarily consists of: global grain
origination activities, which principally include the purchasing,
cleaning, drying, storing and handling of corn, wheat and barley at
our network of grain elevators; logistical services for the
distribution of these commodities to our customer markets through
our port terminals and transportation assets (including trucks,
railcars, barges and ocean vessels); and financial services and
activities for customers from whom we purchase commodities, and
other third parties.
(3)
Mark-to-market timing difference comprises
the estimated net temporary impact resulting from unrealized
period-end gains/losses associated with the fair valuation of
certain forward contracts, readily marketable inventories (RMI),
and related futures contracts associated with our committed future
operating capacity. The impact of these mark-to-market timing
differences, which is expected to reverse over time due to the
forward contracts, RMI, and related futures contracts being part of
an economically-hedged position, is not representative of the
operating performance of our business.
(4)
A reconciliation of Cash provided by (used
for) operating activities to Adjusted funds from operations (FFO)
is as follows:
Three months ended March
31,
(US$ in millions)
2022
2021
Cash provided by (used for) operating
activities
$
(2,656
)
$
(987
)
Foreign exchange gain (loss) on net
debt
116
25
Working capital changes
3,306
1,776
Net (income) loss attributable to
noncontrolling interests and redeemable noncontrolling
interests
(8
)
(86
)
Mark-to-Market timing difference, after
tax
(62
)
(195
)
Adjusted FFO
$
696
$
533
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220427005258/en/
Investor Contact: Ruth Ann Wisener Bunge Limited
636-292-3014 ruthann.wisener@bunge.com
Media Contact: Bunge News Bureau Bunge Limited
636-292-3022 news@bunge.com
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