In an October 26th release, Bunge Limited (BG) posted financial results for the 3rd 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 and conflict in the Ukraine.
For the 3rd Quarter of FY 2022 ending September 30th, net income was $380 million on total revenue of $16,759 million. Comparable figures for the 3rd quarter of fiscal 2021 ending September 30th 2020 were net income of $645 million on total revenue of $14,117 million. EPS fell from $4.28 for the 3rd quarter of fiscal 2021 to $2.49 for the most recent quarter.
The Agribusiness Segment generated sales of $11,741 million with a contribution of $632 million followed by oils and refining with revenue of $4,302 and a contribution of $232 million.
In commenting on results Greg Heckman, CEO, commented, “Our strong results this quarter demonstrate our team’s outstanding coordination and discipline as well as the flexibility of our global platform in this rapidly changing market. These strengths enabled us to better partner with our customers at both ends of the value chains to deliver innovative and sustainable solutions to consumers around the world”.
Heckman concluded "We are also enhancing our capabilities and assets to position Bunge for continued growth. We are investing in our core oilseed business as well as the growing opportunities in specialty fats and oils, renewable feedstocks and plant-based proteins. We remain confident in our business and our team’s ability to create value for the long term.”
Bunge incurred expenses and write-offs amounting to $167 million from withdrawal from the Russian Federation and the conflict in the Ukraine during FY 2022.
Bunge projected FY 2022 EPS at $13.50 based on improved performance.
On September 30th 2022, Bunge posted assets of $24,792 million, against long-term debt and other obligations of $4,852 million. The Company had an intraday market capitalization of $15,310 million on November 10th. BG trades with a forward P/E of 8.5 and has ranged over a 52-week period from $80.41 to $128.40 with a 50-day moving average of $91.96. Twelve-month trailing operating margin was 3.8 percent and profit margin 2.2 percent. Return on assets over the past twelve months was 6.5 percent and the return on equity 17.7 percent.