World Grain - May 2022 - 13

Bunge raises full-year earnings outlook
ST. LOUIS, MISSOURI, US - While Bunge's Agribusiness
continues to adapt to dynamic, rapidly changing market conditions,
the company's Refined and Specialty Oils business
is benefiting from favorable demand trends as well as supply
chain and innovation capabilities, executives with the St.
Louis-based company said on April 27.
Bunge net income in the first quarter ended March 31 was
$688 million, equal to $4.48 per share on the common stock,
down 17% from $831 million, or $5.52 per share, in the first
quarter of fiscal 2021. Sales totaled $15.88 billion, up 23%
from $12.96 billion a year ago.
On an adjusted basis, earnings per share were $4.26 in the
first quarter of fiscal 2022, up from $3.13 in the same period
a year ago. The strong first quarter led Bunge to raise its fullyear
adjusted EPS to at least $11.50, up from its forecast of
$9.50 in January, reflecting " stronger-than-expected Q1 results
and current forward crush curves. "
Following the release of the financials, shares of Bunge
climbed as high as $121.78, up 6% from the previous day's
close of $114.86.
" We continue to build on our positive momentum, delivering
year-over-year earnings growth for the tenth consecutive
quarter, with all segments of the business contributing to the
strong performance, " Gregory A. Heckman, chief executive
officer, said during an April 27 conference call with analysts.
During the first quarter of fiscal 2022, segment EBIT within
Agribusiness totaled $699 million, down 16% from $836 million
in the same period a year ago. Adjusted segment EBIT,
ADM profit climbs 53% in first quarter
CHICAGO, ILLINOIS, US - Exceptional growth in the
company's Nutrition business helped propel a first-quarter
earnings surge at ADM.
Net earnings attributable to ADM in the first quarter ended
March 31 totaled $1.05 billion, equal to $1.86 per share on the
common stock, up 53% from $689 million, or $1.22 per share,
in the same period a year ago. Revenues for the first quarter increased
25%, climbing to $23.65 billion from $18.89 billion.
" I'm very proud of how our team lived our culture and
fulfilled our purpose over the last quarter, as they continued
to serve the world's need for nutrition in a dynamic global
environment, " said Juan Luciano, chairman and chief executive
officer. " Our first-quarter financial results, including adjusted
earnings per share of $1.90, reflect an extension and
amplification of the factors that drove our 2021 performance:
great execution by our team, including exceptional growth in
Nutrition and effective risk management; a tighter supply environment,
especially with the smaller South American crop;
and robust and resilient demand. Importantly, I'm also very
appreciative of how our company has rallied to support our
colleagues in Ukraine and the country's agriculture industry.
" Looking forward, we expect reduced crop supplies -
caused by the weak Canadian canola crop, the short South
www.World-Grain.com / World Grain / May 2022
though, was $627 million in the first quarter of fiscal 2022,
up from $601 million in the same period a year ago. Sales
increased 15% to $11.23 billion from $9.79 billion, while volumes
fell to 20.07 million tonnes from 21.64 million tonnes
a year ago.
" Agribusiness started the year strong, " said John W. Neppl,
executive vice president and chief financial officer. " In processing,
the US, Europe and Brazil reported higher soy crush
results, benefiting from improved margins due to strong
demand.
" Merchandising had a good quarter. However, results were
down compared to a very strong prior year, reflecting lower
results in our global grains and financial services operations. "
In the Refined and Specialty Oils segment, EBIT was $173
million, down 44% from $308 million a year ago. Adjusted
segment EBIT was $180 million, up from $124 million a year
ago. Sales were $3.98 billion, up 46% from $2.73 billion,
while volumes were 2.3 million, up from 2.18 million tonnes.
Neppl said higher results in the quarter primarily were
driven by improved margins and volumes in North America,
which benefited from strong food and fuel demand. Results
in the other regions were slightly lower compared to the prior
year, he said.
Milling segment EBIT totaled $50 million, up sharply from
$8 million a year ago. Adjusted segment EBIT was $51 million,
up from $12 million. Sales also were significantly higher,
surging to $603 million from $390 million. Volume increased
to 1.16 million tonnes from 1.04 million tonnes.
American crops, and now the disruptions in the Black Sea region
- to drive continued tightness in global grain markets
for the next few years. "
Operating profit in the Ag Services and Oilseeds segment
increased 30% in the first quarter of fiscal 2022, climbing to
$1.01 billion from $777 million. Ag services profit rose 23%
during the quarter to $258 million, while crushing profit increased
12% to $428 million from $382 million.
ADM said global trade results were driven by strong performance
in destination marketing and global ocean freight.
Crushing results, meanwhile, benefited from a strong global
margin environment driven by robust protein and vegetable
oil demand, ADM said.
Operating profit in the Carbohydrate Solutions segment increased
22% in the first quarter to $317 million. Starches and
sweeteners profit increased 42% during the quarter, climbing
to $316 million from $222 million. Vantage Corn Processors
posted a profit of $1 million in the quarter, down sharply from
$37 million in the same period a year ago.
ADM said the starches and sweeteners subsegment profit
was driven by higher corn co-product revenues, higher volumes
and margins in EMEA, and higher volumes and margins
in wheat milling.
13
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World Grain - May 2022

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