Bunge Global (BG) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered solid but lower results year-over-year, with adjusted EPS at $1.73 and net income at $70M, reflecting lower Agribusiness margins and a more balanced global supply environment.

• Full-year 2024 adjusted EPS outlook was raised to approximately $9.25, supported by strong first-half performance and improved margin environment.

• Integration planning for the Viterra combination is progressing, with most regulatory approvals obtained and closing expected in the coming months.

• Strategic initiatives include the announced sale of the sugar and bioenergy JV interest in Brazil and expansion of sustainable product offerings.

• Major acquisitions and divestitures are pending, with robust capital returns to shareholders and continued focus on operational execution.

Financial highlights

• Q2 2024 reported EPS was $0.48, down from $4.09 in Q2 2023; adjusted EPS was $1.73 vs. $3.72; net income was $70M, down from $622M.

• Q2 adjusted core segment EBIT was $405M, down from $823M; total segment EBIT was $185M, down from $912M.

• Net sales for Q2 2024 were $13.2B, down 12% year-over-year; gross profit was $664M, down from $1,365M.

• Adjusted funds from operations for the first half totaled $895M; $191M used for sustaining CapEx, $342M for growth CapEx, $191M in dividends, and $400M in share repurchases.

• Cash and cash equivalents at June 30, 2024, were $1.16B, down from $2.60B at year-end 2023.

Outlook and guidance

• Full-year 2024 adjusted EPS expected to be approximately $9.25, reflecting strong first-half performance and current margin environment.

• Agribusiness and Refined & Specialty Oils segments expected down from 2023, with Milling up; Sugar & Bioenergy JV down slightly.

• Adjusted annual effective tax rate expected at 22%-25%; net interest expense $280M-$310M; CapEx $1.2B-$1.4B; D&A ~$450M.

• Shareholders approved a $2.72 per share dividend, payable in four quarterly installments through Q1 2025.

• The Viterra acquisition is expected to close in the next several months, pending regulatory approvals.