BG - Earnings call transcript Q3 2020

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Operator

Good morning and welcome to the Bunge Limited Third Quarter 2020 Earnings Release and Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ruth Wisener. Please go ahead.

Ruth Wisener

thank quarter joining earnings and for this Elisa, third our call. you, you us for morning Thank

the you non-GAAP to I'd GAAP like Before we discussion. direct directly get you financial our know found the presentation that actual that started, in the website view website could and measure performance I factors with want Presentations. information encourage risks Reconciliations includes SEC have future most and in Investor concerning our to results factors. to are differ at forward-looking slides and bunge.com statements accompany contained respect section our financial those well. in of various to cause Investors its that to uncertainties. are These under reflect be X Bunge as remind we can statements this and Bunge's of events, let Slide today's forward-looking from measures to presentation, comparable you posted on materially to we subject with that on current has these to reports review you industry provided file These conditions. to additional

turn Greg. Neppl, Heckman, On Officer; call John Executive are I'll Chief the to now the Financial Greg Bunge's over and Officer. call morning this Chief

Gregory Heckman

you, good Thank Ruth morning, and Ann, everyone.

Turning to Slide X.

the the then I'll the XXXX before over John performance. in who'll to we're your I'll You line start more third it hand on of for questions. with how agenda our rest call. see for today's year thinking the go can then an opening overview the quarter, of share details about into

model, improved how more of protocols performance is We have and We and impressive moving the meaningful with Slide our discipline. financial I more portfolio team's with opportunities capture the as of crush to operating This identifying and to we couldn't across changes achieved our agile, start members global over utilization the few record and past X. them even let's remotely. execution. results and a COVID our These global had footprint, many remain an we've So quickly made team our turning conditions increased integrated evolved. outstanding working exceptional market the quarter, proud and be more quarters reflect quarter, been considering

for effectively way global channel During we U.S., supplies. demand. continued as aggressively the incremental now we needs progress and through with the term. do were continued an creating crush road. ongoing last continued and The developed. noted. in to of and America Biofuels further down improve much improvement quarter, for COVID business, our and tightening and quarter, the the continued, the vegetable we'll third noncore in positioned announcements ended across business drivers the quarter behind we things rewiring that several over well margins end seen on portfolio basis, and margin ensure On of Last has the the the the the widely move improve look noted China they've ahead curves, through of With been made than movements helped year. noted cases, expected increase. quarter oil most curves environment we for the positive. in In soybean demand flows portfolio as complex begun South quarter. On our adjusting particularly we That to our the saw able our further we July. a We've in forward out the in we did long And China, noted work us, before number the of address to called the additional the opportunities initiative indicated job to could team of regions, change we higher quarter strong most great we're Europe. to divest to was oil to food outlook assets the which We purchasing are of continuously we're our look a tighten

saw the last We situation impact China The on our unchanged largely business buying is Argentina of quarter. start in corn. from also

While us fully we our environment current system, customer platform have our utilize the Argentine does flexed allow not global meet to to demands.

Finally, many spot in were that we noted the customers market.

job through our in lock moved as ag begin chain said, As and to value a we we customers food customers I of did the at helped manage needs. risks. both the great And third executing their as teams ends quarter, their

faster, find quarter excellent fully to in right throughout more solutions our XX and than chains. job our to we're things. internalized we risk approach basis demonstrates value collaborating Our We've a teams right past and the efficient COVID. way become ingrained with the needs an We our right ever. more management teams team it's portfolio the on do their evolving to to the Internally, jobs have focused that and to day-to-day their customers related on data-driven continue do this months, over our believe the

we stress always to will assume in expect thoughts detail, the global Before and volatility on XXXX. view, want inherent then with and the the margins year the improving results the earnings of I that downside, perfectly are quarter. both $X.XX. at And on adjusted we that end the everything over we'll protect some our the And with rest we'll on in EPS can't call QX to expand range year John, while the that, over handing our flawless to on go the financial manage to team's now opportunity $X.XX Based our the to this execution in just hand to additional business, ability when our it given in in exists. of through John was close I'll market ag with and now we the and nearly results walk risk confident trends,

John Neppl

Greg. Thanks, Good everyone. morning,

press our that have of release. noticed change to may earnings You format an additional we made the

of clearer differences. included exclude also adjusted We have past that and gains and the our timing that which a company mark-to-market in Note differences year-to-date mark-to-market results. for item have results, timing charges, provide now certain line will quarterly will excluded assessment a

also We this performance. will financial think year transparency help further our change prior your adjusted and improves accordingly. understanding We of the

Now to the on X. earnings let's Slide highlights turn

Our in earnings of compared to in a the the per $X.XX XXXX. was third reported share third loss third quarter was $X.XX of $XX.XX in $X.XX EPS year. quarter Adjusted versus the prior quarter

adjusted in the tax Our were prior $XXX in in core results compared before of driven EPS. benefit $X.XX or segment million and versus year differences $XXX included reported EBIT of reversal Adjusted excluded the taxes, to primarily agribusiness at related and $X.XX tax was a where deferred results negative interest adjusted asset mark-to-market EBIT, a of earnings that timing million the arrive valuation to EBIT $XXX was year. million million to last $XXX quarter by adjusted income

managing the As the crush global execution results especially Greg Asia value margins in lower our slightly in Oilseeds, Europe America, flows results where strong in oil meal trade U.S. assets, agribusiness vegetable South the strong were expanded reflected offset by quarter throughout and demand, capacity noted, partially chains, higher soy higher and in the of results and In risks. from

the and corporate offset on performance-based venture million and from demand million costs by benefited Brazil, lower and in BP restrictions. strong increase were The year. up $XX Brazil driven local by loss execution million increased prices lower Oils, diverse and favorable primarily and driven America, offset income Results during in were channels, in to about Europe. strong food from margins, offset of included were U.S. benefited from America period improved Results local the as in per Year-to-date those quarter quarter, $X were higher our driven our higher In as farmer Results positioning. our reflecting year margins in expenses operations results adjusted prior the in and and results million origination Grains teams volumes. results currency efficiency by with from our to primarily crop due improved, of portfolio up expenses increased by for a this were South in prices year industrial performance from execution as adjusted Fertilizer, EBIT quarter. our excellent of selling prices third in Asia, which higher accruals which increased of by North segment the and average results financial by during Edible last segment margins distribution volumes, In as sugar $XX Higher expenses regions by in performance. and processing trended costs. held improved for last total in lower of improved increased processor the ethanol This favorably no million were joint was XX% retail oilseeds higher the corporate the to driven million Earnings and improved consumer down unit in of In $XX also our well reflected depreciation Results strong in and year. XX-XX period. was from last from other more benefited quarter vegetable year-over-year were during Softseed capacity performance. broad slightly of earnings sale. in second higher compared corporate $X as Mexico. assets last and in year or operation contributed COVID-XX-related compared than Other, but ago other. increase higher driven all challenging operations by from than $XX Lower Milling, from a of to year, from currency lockdowns comparable Argentine in EBIT record partially utilization. to earnings and benefited Corporate oil trading classified and in in results variable and In compensation

XXXX, interest during XXXX, ended X increase income $XX in respectively, $XXX pretax months tax benefit Net September expense For expense XXXX higher in months line driven the X tax our and for $XX is compared was X by $XX ended the income $XX income. million and million to X September million, a and with expense respectively. million million XX, expense XX, of of expectations. of The was and tax

X. turn let's Now to Slide

positive can in currency compensation notable improved our our ends. net increase you significant a our a past $XX recent timing the X fluctuations, trend earnings SG&A with million, performance specified years other savings performance adjusted performance-based for the $XX items, million, of prior the inflation up underlying most X and accruals for QX compares accounted was and to million. by as such financial along quarter as our full Adjusting to due as increase items, Slide $XX offset of items trailing quarter well the for SG&A differences year. over for X see notable SG&A partially this foreign Here, XX-month

Moving X. to Slide

operations. from cash in enabled The cash period, were items approximately readily mark-to-market million excluding of generation, cash XX-month months our approximately over billion inventories. our adjusted trailing with notable and and differences, fund fund strong comfortably the increase obligations marketable funds our generation $X.X to flow the XX For us of $XXX timing last

see Slide us balance last to used can the end X, compares sheet. year. finance net our As this XX% marketable This you quarter, on was our to allowed to XX% readily of inventories. about At of debt the third strengthen

Turning $X.X and we with is strengthens billion to $X And of credit This had our the Slide is we committed $X.X week, further committed quarter, facility of facilities million liquidity. uncommitted. XX. facility, the $XXX billion on revolving last At billion a end credit $X.XX available. closed billion of which approximately

productivity allocation. of billion XX which In balance end cash addition, notable the After timing and approximately health million adjusted summarizes $XXX to and to CapEx funds cash of Year-to-date at performance of Slide approximately amount, was quarter. preferred June, in $X.X from $XXX return Of of was and the back invested XX. safety X operations, common discretionary paid items bought excludes we sheet. had allocating QX, flow dividends, The we differences, $X.X $XXX cash that remaining we mark-to-market of million available. $XXX of a in sustaining capital Please $XX third our complementary shareholders, used flow million On our our in Slide introduced approximately believe our we had business. business to to million environmental, and dividends million billion. CapEx and maintenance, include update turn $XX metrics to this stock. to balance $XXX during strengthen million we million reflect our growth

which a RMI metrics is profit. ROIC, tool of merchandising those to recognizes incremental One as generate adjusted

X%. are of percentage of months, trailing X.X X.X percentage ROIC and our or adjusted was For points our capital adjusted cost X% XX XX.X% this well over metrics was of average presentation. the in over of cost these of capital points RMI our target X.X%. Detailed calculations of ROIC above the weighted of weighted stated average XX.X%, appendix

Slide to Moving XX.

we discretionary ratio yield, This equity. The cash flow flow a second other emphasizes and measure adjusted earnings of which generation is book complements cash cash and to metrics. complementary metric introduced return was

years cash yield see X against as can cost our X%. trailing last over most the you measured of flow as months the Here, for of recent quarter XX X well for the full ends equity

XX-month to trailing period XXXX, of Slide outlook. XX XXXX September cash flow our Please turn XX%. produced the For a XX, we ending yield and

demand. our in In Fertilizer, compared with full and to improved year slightly is to year As expect and remarks, his Edible Corporate performance now earnings, strong year we when expect market full higher results forward and be to to adjusted be share. Expected differences, biofuel Greg now we continue quarter than in our results due expect reflects the year year. adjusted year Milling notable Bunge curves. of full in to $X.XX growing adjusted outlook full results, excluding comparable last third In consumer year between line timing businesses to Other results and year. we to up items and mentioned adjusted mark-to-market last environment Agribusiness, our Ventures. $X.XX excluding now last year-to-date Oils, a current be last be of In expected

back also I'll adjusted million, interest XX%, expense to $XXX Greg depreciation expect million. range to $XXX $XXX things rate effective in closing and turn to million XX% approximately the annual $XXX million that, With and for comments. range over We approximately net capital of of the tax some in amortization expenditures of of an

Gregory Heckman

John. Thanks,

you Before give turning few closing a to I want thoughts. to Q&A,

favorable While now, will balance through on and to the markets how the trends we into the we we can't what carry fully of predict evolve, XXXX. based many XXXX see expect of

expect remain term, for strong. underlying longer core demand our products Looking we to

chemically identical which both demands conventional this meet additional fuel to a expect our positioned as distribution due our from vegetable oilseed to biodiesel the as global in strength crude-based to in diesel, capabilities, addition growth in is We to diesel. well biofuels, growth. on incremental drop growth and processing, in also well worldwide for oil origination demand With capitalize we're market of and renewable

most we've tell we're our capture made We're And we're importantly, you in model and Bunge. global confident ahead in our can our open with So that, ability And to we opportunities our closing, at I'll approach. changes us. platform, in their confident team confident call operating the the all and and to in of financial continuing identify the your questions.

Operator

question [Operator from Stephens Ben today Instructions] The comes first Bienvenu of Inc.

Benjamin Bienvenu

results. the on Congratulations

rewind we $X Day, that your to if earnings So within this a an return summer at self-help. average was environment a and of to number embedded outlined Investor and crush you back mid-cycle $X

an And suggests, sheet is deliver fundamentals. that with the I where and that the curious mid-cycle think balance story. important self-help. clearly above as fundamental more in your environment you guidance repositioning of journey I'm But deleveraging component to that $X self-help are I broadly, within know your you're of that, against

investment-grade-rated to profile? that flexibility? about And capital does results, in do these getting allocation think With of debt you for an milestone you what mean terms how

John Neppl

Thanks, Ben. John. This is

which couple is the the those I dollar in self-help. we to -- think sheet. firm part deal, close, of course, from yet the sheet and proceeds the are balance yet, the $X on we're grain proceeds of sale, mayo closed from of merger yet as the things well the that neither of the underway balance up of A that

SG&A of our the on the progress on think industrial there. well shown side side. way and savings both terms I cost In we're We've side, good the on

to underlying And in talked business confident to there. about ways. that a of then get So the our continuing very we we improve number XX% we're XX% we'll feel

on we in of part those One that improvement. focused of specialty was that were as

we terms and in performing In to of relative definitely going direction. how investment-grade forward thinking think credit we're about I the heading rating, right are

they're progress. our think pleased metrics with with improve. I think to the agencies, having continue We're the I dialogue and good rating

things. to S&P think stable I upgrade but can't with get And so on again, get our will our doing BBB course, we've we're outlook happen, to we're cash an do and right with to the that goal, when And capital standpoint, been able taking going predict Moody's. with hard the of is back solid I look a forward what we -- here. produce, ultimately, all that And to need at generation from a allocation

Benjamin Bienvenu

Okay. per noncore, wasn't to It that My portends your Great. second funds I are the of the how I the is outlook. because to Sugar the question consummate that materially reallocation the divesting business, noncore know in business results included related prospect of core kind as definition relates were business. is about sugar And & is which you that not Bioenergy by and is think of your it's know but you your of what and part curious business of release. to sale it think remaining you improved. and kind I'm business if of to

John Neppl

it I Well, solid happy is it's we're the with business. certainly, long-term recent obviously, very with I improvement, that partner BP. -- that, a We've changes think team it, team. our don't in don't think the running while plans very a got that great The

which BP again, continue through current with we what And before with XX we'll likely. It's going to term, there are that that best be opportunities out most can. sale what ultimate the a time, long we're hasn't occurs. see in happy capital in to XX have see least at to business that is we'll very as time. to exit. changed, them months Long But we some at opportunity when happens other point something our But or meantime, to So to divest IPO support term, an whether the arrangement. the that over goal it we'll or

Benjamin Bienvenu

with the remainder of the year. Okay. Great. luck And best of

John Neppl

much. very you Thank

Operator

Goldman Sachs. Samuelson next question of comes The from Adam

Adam Samuelson

kind the it of to about first implying of seemingly environment third strong I I into Europe year-on-year. the of the hedged? domestically Is may flat of of Agribusiness just outlook especially So about quarter Brazil, have fourth I you in that's now? only kind moved outlook, that robust really want U.S. to about operating trended, trying the I layers make the margins current mean right. seems way margins and question, sure Or how what at certainly how up how look have the kind put think my just like about and unit I crush -- just the if in in that and how you've you're think kind outlook right your quarter, crush just kind given crush guess

Gregory Heckman

The curves little spot replacement very margins us, the are Yes. higher Sure. the your so demand. on are at robust. of what a right? we're and back less year margins, buyers' course, of right the telling that. fourth definitely demand, up, oil nearby analysis than the last meal you're looking With spot, And And now. correct crush increase prices has curves reflect in We've moved it higher seen quarter,

improve we'll have. a impact So but upside of that's works. how head of rearing will telling concern and in not week there's COVID continues a as absolutely, month it unfolds, now. at as the course, of If QX, us right kind then, here, kind is that sure, time is, to what see a again, its that it And what it's

are still dramatic we've do the through watching closely about, supply from at for Now once that cycle, think chains, as it be more home more affect people than and while we've people the have eating both adjust fuel. it that We shift as been as food does and because, we're won't people prepared. that home, we away talked demand their

with same have we're it watching closely. it hoping but the we are that even roll-in, doesn't the So impact,

Adam Samuelson

positioned alluded that about capacity with in diesel. how guess how prepared elaborate might and Bunge needs. you crush that and color. my to assets think remarks, Okay. sell the and question, the on second industry bit in to a about opportunity hoping more I advantaged on renewable I in or particular the how would is think helpful would there something was you in be you the think And you U.S. That's the if that oil benefit little growth And to just can then

Gregory Heckman

Yes.

that Bunge need in that to oils on reformulates line I in growing in mean some more there'll decide with but the which be customers global are adjustment met well there'll bottom oils then great be that across will fuel we not very soy, position use, to continue positioned. needed, as demand, that our platform fuel and be be the to also serve which all the a well our is fact is fact and the think the we have portfolio, adjustment oil market think with depending our can positive. to in as work food of the I food this they're palm as demand, the oils will we're soft well. the food market but to serve only on the going and And vegetable all those and

Operator

Next question is from Ben Theurer of Barclays.

Benjamin Theurer

Greg, a congrats all, strong John, results. that on Clearly, quarter. was first of the

about to and question. Adam the be just Just through understand had one work just I U.S., and dynamics. was crop the going that dynamics the the obviously demand and of to trying line goes there's bit strong basically We're market little a bit. we're asking through to now quarter little still seeing strong It obviously, fourth from in a into what

think what to more margin? we should the is bit how quarter fourth a that demand profitability and you're that think for $X.XX of market terms considering recent with the you over the continues quarter? So of guiding the crush in the looking But do the little be where XXXX, that what to if to likely quarter into $X carrying look the to with in EPS we and head beyond strength fourth going and quarter

Gregory Heckman

environment probably here you're best if continue say the I fourth to And would had right say to very you it's good correct. you no, now. quarter. Yes, is The in think

I into if carries the in to we closely. QX. that not what We believe that then that it said, the I through As QX continues, next That's say. we right But are days, work think XX carries. watching momentum curve XX as

so a come of lot XXXX into you And momentum. with

ahead way optimistic, good and where guided environment QX, we -- we we'll goes like we now, looks. of and in then see how total. went it very We're environment that the right carry now and feels feels always believe It's So from that the our because and do in why that's the right into but up there. will cautiously confidence and

Operator

Next question comes of from JPMorgan. Tom Simonitsch

Tom Simonitsch

was you're What U.S. the I just grain the divest? QX divestment curious XXXX from current accretive elevators you view contribution looking to as earnings to at XX if that was still run rates.

John Neppl

It did was at just not so well in yes, slight the capital. And would -- be perform business loss. it without reinvestment was the on still itself a divestiture transaction QX. It any accretive of the

Tom Simonitsch

into you Okay. crush on needle elaborate capacity tax at crush XXXX? selling export Argentina expectations or cuts of terms through moved farmer And the your utilization? in Have January all can for

Gregory Heckman

course, unfold, been be really but very producer really, it a of farmer the might seen, that, and resilient. about up, utilization margins you've has guesses Argentina rates. how has discussion, lot right? on continues bound lot tough a on to being very of The tough reluctant as There's of been marketer. And

improving Argentina And So don't environment. we're a I'm decades situation until that doing got running experience. there's job we some a global been system. But clear now, there in direction. and right a tough We've team a great see lot of sure glad the very in we've is

Tom Simonitsch

I on last one question. tag If just could

making why you're on now results. You're you from elaborate change excluding now? that impacts just mark-to-market your Can

John Neppl

how try been it how around for last a been at created it. provide clarity we really mark-to-market, of few times the people. over an effort to little bit it's -- frankly, a It's We've lot Yes. think it been confusion verbalizing of has but years, to about

our just adjusted giving of results impact." is was top just here on rather in it that, "And then than results it cleaner the to and saying, we thought show So in adjusted mark-to-market here

Gregory Heckman

it's granularity everyone consistent our Bunge earnings and transparency more results the with power better. I to understand the try to think continue about promise to with just help

Operator

comes question Vincent next Stanley. Morgan Andrews of The from

Vincent Andrews

results you adjustment. making Congratulations thank that on the for mark-to-market and

what going on. was and for back, life Many, later coming back headaches what make to mornings going it and away, years come many what would forward. wasn't think easier lot many many, was from everybody what was reconcile over I trying on the might a that

or construction just good be be it I renewable of omission, of Greg, earlier. I any the So an on you equation. like a said sort idea. equation an service side any desire or to it a you of supply finish correct? by thoughts of you have -- owner of facility, and that think want new diesel the actual want And or to but doesn't of rather but the construction to sound from an the side Is operator the one

Gregory Heckman

want We growth, we're to correct. that's what Yes, there at. and we're what to want to core be do serve that but we best

look help it network at our anything we'll supply of context do But sense. manage We'll we where serves chains. so look that our And customers. to capabilities it food work fuel with of debottlenecking If adding and we'll places at the all customers. with makes it's refinery or storage customer handling our and

optionality. So get we as network, we that our improve

we'll win. in it's want an make to work work the to where capital have we putting definitely assets sure we right to disciplined but So be glove, hand about long-lived and in area very

Vincent Andrews

of of lock on? -- I to tremendous might wrong? that months there amount imply Or do better Okay. I being in try sort what's in thing going the about XQ customers sort spot just the other liquidity have Is And market. you're understood back make a the that to was next I making in sure to and of isn't year wanted the to out that comments into and

Gregory Heckman

kind liquidity, to kind curves the that to have near of are to No. and That's generally the show correct. here. of there's this the margins going And you're reflect quarter the more that's but liquidity these that nature following of as quarter. in industry always is me going that not stay And only

outlook. our And what's so reflected that's in

Vincent Andrews

with sneak would of that terms much for about us, quarter, for how farmer of about we understand versus sell I there's can the there's if maybe seller gone not and of if help year's a -- ask until rest just has the how of one just bit a in. step can do just one farmer how of you year much us and in process. them left I'm much And through been reasons the you next down is the farmers Brazilian if as one less The I a harvest. to reconcile just for to this of Okay. is left just of understand Brazilian fourth that's what them is for And could quick year. a trying already seller. kind you've to quite last talked It's sequentially. the why where already you've bought you to Argentine the think sort that

Gregory Heckman

Yes.

correct. absolutely You're

Some the selling pulled Brazilian purchased been normal patterns. forward has business of that farmer from versus

they're around sold even selling to they've little of crop, a now, and nibble XXXX bit the that. right started XX% at So

with the situation. a in change it's been the So profitable real,

And up moved so been has it's on definitely been -- the that. timing

Vincent Andrews

Great. again. Congratulations Okay.

Gregory Heckman

Thank you much. very

Operator

next The Moskow comes Suisse. Crédit question from Robert of

Robert Moskow

today. news Great

Gregory Heckman

you. Thank

John Neppl

Rob. you, Thank

Robert Moskow

Sure.

parabolic crush its Do sense in Regarding the And in terms a like you can of pig soybean China you fundamentals is in have bit where about move driving seen facilities herd? in of the that? have China? your demand, response at a rebuilding meal talk you little what

Gregory Heckman

Yes.

more the really in that's we herd quickly only and talked back been well pork back getting recovered. been much hog we Our not that have this China herd the the very as crush facilities as than been demand recovered, -- of China on has has about, thought. built run year, oil But

we we as The inclusion rates talked we that be professional other the to operations saw came expect is and higher up, that well. as factor had

halfway kind back So of levels. the believes they're market I think the about pre-COVID -- from

meal a a big that has to got of still they've ways part go, but that demand. So been

I think up but it's pork Brazil around EU are global that, also X%. up. and think U.S. also leading and I China So

Robert Moskow

Right.

Gregory Heckman

the the put up in -- China on Brazil, some then And was back. a the as demand still and also there And bit India. as EU, U.S. pork global That well, chicken comes then is early. in just increase but place that

broad So demand. it's good,

Robert Moskow

Right.

now? to just the shift retail just I a follow-up. of the thinking people a then the lower others At when kind guess worry channel, about because we returned And channel -- think little anymore and to else? think to your normal that Or foodservice bit have question. Are I food And is Great. just Okay. there possibility several not because patterns? is do my you something the about eat were closer kind you have past from Do of people so, company it's a that demand naturally we if for situation of of COVID, less. to start

Gregory Heckman

-- very I It's very, center smaller has strong. grocery eating rebounded of has the think than been right, that's very badly. demand service, street QSR been quickly. adds everyone thought. the from store very business the people It more returned food the quickly home, has hurt With The Yes.

that And that's so total. been the has strength pulled we in But foodservice making down thought up. in than stronger CPG

the definitely kind over impact forecast we that of have. So that, would

think continue as since to concerned as now And so concerned we we're so -- but watch we've as always through yes, we're -- that COVID, now as cycle been I not not concerned, once.

Operator

Montreal. Ken next of comes Zaslow question Bank The of from

Kenneth Zaslow

guys we I number? look use it is, that's And mid-cycle I you is think years? about is Or a something thinks just an think reason X as $X really I as? the it just mean really I it number. of as mid-cycle forward, everybody as of when you say last a the going when And X well? should number, this China, representative change that a have average year. diesel Or But average that of it renewable that So the considered over you for say what rebuild the in years future you mid-cycle? just the would X and not forward, is year, Is capture but considered that's that's a

Gregory Heckman

Yes.

at definitely we think history. I looked

John, I was maybe, is it -- X years? it think

John Neppl

Yes.

Gregory Heckman

right, There's in We of we food there, -- there. in build is growth. really in Imcopa didn't X any not Yes. we history. no didn't growth. no growth. years renewable put didn't diesel What protein plant There's

was it XX. and historical the It's the we we call for that earnings. looked weighted that's at the of margins not And So power. around baseline and It's why then was that's -- earnings system, our baseline. our system, crush

we to year-to-date, that's of And on about kind of taking in about just give you're think I on XX as as some you of seeing XX. that earnings year. versus what continues momentum Now earnings up for we'll into that a benchmark the anchoring the at and And that the we're XXXX, then think be off benchmark us that, that.

Kenneth Zaslow

is, probably my a had didn't to follow-up right, that is My that haven't in, that market sense think or would were also, we be when because, would about call years. you buying that, China thinking there market be you free free a X, it, XX

it about demand, and well? kind just something more ebbs from export structural? you I'll play margins that, as the that elevation you more something does I that China after I'm XX about Or And one have that think of leave that? excluded that's assuming But and margins how that's do is think when and So flows. or that, into with that's there. how

Gregory Heckman

wasn't been increase Yes. in a definitely been and an positive that's numbers. increase. That's Yes. our That

As time it. continues, underlying, sustainable entire we the a talked more lot about at I'd say the feels that this than

Kenneth Zaslow

start a said And certain participate the your -- then is, a final participate a right you to when do that new level business going elaborate look now in leave you and you is certain previous I'll the you that businesses what that question to get have Can will there. have forward? was does in of to able right in? in my Bunge when what about talk you And you you to businesses to not and it and margins earn -- how right to. the previously, businesses have order, get earned your

Gregory Heckman

think Ken. at Thanks, point. Sure. And Sure. that I we're

fun. more capital where invest, to one because capital the more in system, our We'll or we'll attention that's at we have sizable. to portfolio the and earnings talk as announce finishing before small the probably turned look from end about, a we deals. a As little cash work. the got start We've And we've really growth. we're to And the one one, year couple of improve team that Agribusiness. our But in work. the deals competing we about the that improve to put disciplined the to for think continue protect to closing the footprint we about how to very be The going we're

consolidation sense. makes that any So regional

exciting our place. growth, That great The a in either where we to offerings the plant about in is win. place those in place. we'll pipeline a team that plant We've nice geography our that be deal got on acquisitions oils other we some a a that. that's protein That's specialty customers. there'll side, protein improve real We got of trend have our it's to continue working disciplined and an fats build Again, projects. a announced product right We've and one to tuck-in is values. and That's believe business or we'll be to bolt-on on footprint.

on customers. customers. so for love and make the thinking You'll those opportunities in side, hearing working good roll diesel demand, look fats have in to proteins through then about, be future taste serve the and that feel have of our with plant And that broadly side platform, those make the lifts the market on to more we oil as Agribusiness footprint renewable fuel that all about those as that food and benefit oil as we're things all that providing with specifically we improvements already And and that that bite across much. serve relationships customers the mouth we talked that the and fats we we'll out, our the customers, we but the -- it and our in we oils lens have and again, entire

we're having to this point, we're and this diesel, So renewable some into at right. starting good proteins point to excited We're in move is about around growth really and the excited team. the demand new industry the earnings really at about to in new excited performance well have which the as to continues demand plant where up and growth as be inflection opportunities real of just the

the really proud So excited about what we're doing here, team. of Ken, and really,

to to next quarter. after again you forward looking So the talking

Operator

to back over our like concludes remarks. Ruth any session. to conference the I for question-and-answer turn Wisener This would closing

Ruth Wisener

the Thanks for day. call reach a feel you And have today. questions, Have any if good to free joining please out.

Operator

The conference for has now attending concluded. presentation. today's Thank you

You may disconnect. now

Bunge Limited (BG) 28 Oct 202020 Q3 Earnings call transcript