USA – For the third quarter ending Sept. 30, Bunge Global, an agribusiness reported a net income drop to US$221 million, or US$1.56 per share, down from US$373 million, or US$2.47 per share, in the same quarter last year.
Adjusted earnings per share also declined to US$2.29 from US$2.99, a 23% reduction.
The quarterly earnings reflect a negative mark-to-market impact of 16 cents per share and an additional 57 cents per share reduction due to expenses tied to its planned merger with Viterra.
Revenue also dipped, with net sales declining by 9.3% to US$12.91 billion from US$14.23 billion in the previous year’s third quarter.
After releasing the quarterly report, Bunge’s shares saw a significant downturn, reaching a 52-week low of US$85.08 on Oct. 30—3.2% lower than the prior day’s closing at US$87.84.
Since hitting US$100.48 on Sept. 19, the stock has fallen by 16%.
In Bunge’s largest business segment, Agribusiness, adjusted earnings before interest and taxes (EBIT) fell 23% to US$366 million, down from US$472 million a year ago.
Agribusiness volumes reached 19.89 million tonnes, slightly higher than the 18.85 million tonnes recorded last year.
Sales within this segment also fell, dropping 7.9% to US$9.29 billion from US$10.08 billion.
Chief Financial Officer John Neppl provided further details, explaining that processing results within Agribusiness were lower this quarter at US$291 million.
The Refined and Specialty Oils division also reported reduced performance, with adjusted EBIT decreasing 21% to US$182 million from US$230 million in the prior year.
Sales for the division totaled US$3.16 billion, down 12% from US$3.6 billion in the same period last year.
Neppl attributed this to mixed results by region, with Asia posting improved outcomes, but North and South America showing declines; performance in Europe remained steady year-over-year.
In the Milling segment, adjusted EBIT dropped significantly by 61% to $13 million, compared with US$33 million in the third quarter last year.
Sales fell 15%, reaching $407 million from US$479 million. Neppl explained that slightly improved North American results were insufficient to balance lower earnings from South America, where rising raw material costs pressured profit margins.
For the nine-month period ending Sept. 30, Bunge reported net income of US$535 million, or $3.73 per share, compared to US$1.63 billion, or US$10.71 per share, in the previous year.
Adjusted earnings per share for the period stood at $7.06, down from $9.97. Total net sales over the nine months decreased 11% to US$39.57 billion from $44.6 billion.
In addition, Bunge broke ground on a new expansion of its palm and specialty oils facility in Avondale, Louisiana, an acquisition completed last year.
This facility, equipped with multi-oil processing capabilities, has outpaced initial expectations in terms of performance, contributing to the company’s reach in North America.
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