In an April 26th release, Bunge Limited (BG) posted financial results for the 1st quarter of fiscal 2022. This Company can be regarded as a bellwether for ‘Mega-Ag’ and the commodities sector. Along with competitors ADM, Cargill, Cofco and Dreyfus, all are subject to the risks of currency fluctuation, geopolitical events, climatic extremes, and increased cost of ingredients, labor and transport in a competitive world environment still restrained by COVID.

For the 1st Quarter of FY 2022 ending March 31st, net income was $688 million on total revenue of $15,880 million.  Comparable figures for the 1st quarter of fiscal 2021 ending March 31st 2020 were net income of $823 million on total revenue of $12,961 million.  EPS fell from $5.52 for the 1st quarter of fiscal 2021 to $4.48 for the most recent quarter.

The Agribusiness Segment generated sales of $11,231 million with a contribution of $864 million followed by oils and refining with revenue of $3,976 and a contribution of $282 million. Other segments combined attained $667 in revenue with a contribution of $72 million.

In commenting on results Greg Heckman, CEO, 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. He added, "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.”

Bunge projected FY 2022 EPS at $11.50 based on improved performance in Q1.

On March 31st 2022, Bunge posted assets of $28,724 million, against long-term debt and other obligations of $5,753 million. The Company had an intraday market capitalization of $16,680 million on April 28th. BG trades with a forward P/E of 10.0 and has ranged over a 52-week period from $71.73 to $128.00 with a 50-day moving average of $111.65.  Twelve-month trailing operating margin was 4.0 percent and profit margin 3.5 percent.  Return on assets over the past twelve months was 6.2 percent and the return on equity 29.2 percent. At close of trading on April 26th pre-release, BG priced at $118.84. At market close, post-release on January 27th BG traded at at $119.84