World Grain - December 2024 - 10

NEWS REVIEW
Agribusiness challenges drag
down Bunge earnings
ST. LOUIS, MISSOURI, US - Fluctuating supply and demand
dynamics have presented Bunge Global SA with a challenging
economic climate, and the St. Louis-based company
is feeling the impact, both in its financials and stock price.
In the third quarter ended Sept. 30, net income attributable
to Bunge fell to $221 million, equal to $1.56 per share on the
common stock, down 41% from $373 million, or $2.47 per
share, in the year-ago quarter. Adjusted EPS for the quarter
was $2.29, down 23% from $2.99 a year ago.
The most recent quarterly results included an unfavorable
mark-to-market timing difference of 16¢ per share and a negative
impact of 57¢ per share primarily related to transaction
costs associated with Bunge's proposed merger with Viterra.
Net sales, meanwhile, fell 9.3% to $12.91 billion from
$14.23 billion.
Despite the sluggish third-quarter results, Gregory A.
Heckman, chief executive officer, pointed to " great progress "
on integration planning for the combination with Viterra and
the completion of other strategic priorities during the quarter,
including closing the sale of Bunge's interest in its non-core
sugar and bio-energy joint venture in Brazil to its partner, BP.
In Bunge's largest division, Agribusiness, adjusted segment
EBIT for the quarter was $366 million, down 23% from $472
million in the year-ago quarter. Agribusiness volumes were
19.89 million tonnes, which compared with 18.85 million
tonnes in the third quarter of 2023. Sales were $9.29 billion,
down 7.9% from $10.08 billion in the third quarter a year ago.
Adjusted EBIT of the Refined and Specialty Oils division
was $182 million, down 21% from $230 million in the third
quarter of 2023. Sales in the quarter were $3.16 billion, down
12% from $3.6 billion.
In the Milling division, adjusted EBIT was $13 million,
down 61% from $33 million in the third quarter of 2023. Net
sales also were lower, falling 15% to $407 million from $479
million.
Renewables, Trade segments boost The Andersons earnings
MAUMEE, OHIO, US - Strong renewables production and
improved results in the Trade segment boosted The Andersons
net income attributable to the company to $27 million, equal
to 80¢ per share on the common stock, for the third quarter
ended Sept. 30, up from $9.7 million, or 28¢ per share, in the
same quarter a year earlier.
The Trade segment recorded pretax income of $26 million
and adjusted pretax income of $23 million for the quarter,
which compared with pretax income of $8 million and
adjusted pretax income of $5 million in the third quarter of
2023. Trade's third-quarter adjusted EBITDA was $38 million,
which compared with $21 million in 2023.
Strong elevation margins and space income, primarily related
to corn and wheat, helped results, the company said.
Trade's growing specialty ingredients business continued to
benefit from recent growth investments. The merchandising
business remained profitable with well-supplied commodity
markets and limited volatility.
The Renewables segment reported pretax income of $53
million and pretax income attributable to the company of $28
million in the third quarter.
For the same period in 2023, the segment reported a pretax
income of $47 million and pretax income attributable to the
company of $26 million.
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December 2024 / World Grain / www.World-Grain.com
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World Grain - December 2024

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