ST. LOUIS - Bunge Limited (NYSE: NYSE:BG), a leading agribusiness and food company, reported a decline in its second-quarter 2024 adjusted earnings per share (EPS) and missed revenue estimates. Shares fell 5% following the announcement Wednesday.
The company's adjusted EPS came in at $1.73, which was slightly below the analyst consensus of $1.77. Revenue for the quarter was reported at $13.24 billion, falling short of the expected $14.13 billion consensus estimate.
The company's performance in the second quarter reflects a more balanced global supply environment, which impacted the Agribusiness results. Despite strong performance in the Refined and Specialty Oils segment, results were down from the prior year's robust figures. Bunge's CEO, Greg Heckman, noted solid results amidst strategic advancements, including the sale of the company's interest in the BP (NYSE:BP) Bunge Bioenergia joint venture and progress with Viterra integration planning.
The reported net income attributable to Bunge was $70 million, a significant decrease from $622 million in the same quarter last year. The adjusted core segment EBIT was $519 million, compared to $893 million in the prior year, indicating a downward trend in profitability.
Looking ahead, Bunge updated its full-year 2024 adjusted EPS outlook to approximately $9.25, which is below the analyst consensus of $9.46. This updated guidance accounts for the current margin environment and forward curves, considering the first half of the year's results.
Despite the challenges, Heckman remains optimistic about the company's long-term demand drivers, citing Bunge's global footprint and operational flexibility as key factors in connecting farmers to consumers and delivering essential food, feed, and fuel to the world.
The company's guidance reflects expectations for full-year results in Agribusiness to align with previous outlooks, with higher results in Processing but lower in Merchandising. Refined and Specialty Oils are anticipated to perform better than previously expected for the year, although still below last year's record. Milling is projected to show results similar to the previous outlook and an improvement from last year. Corporate and Other results are expected to be consistent with the previous outlook, while Non-Core results in the sugar & bioenergy joint venture are forecasted to be slightly down from the previous outlook and significantly lower than the previous year.
The company's strategic priorities, including the integration of Viterra and the divestiture of non-core assets, are progressing well, it said. These initiatives are part of Bunge's broader efforts to streamline its operations and focus on its core businesses.
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