BG - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Bunge Limited First Quarter 2021 Earnings Release and Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I'd now like to turn the conference over to Ruth Ann Wisener. Please go ahead.

Ruth Ann Wisener

thank quarter joining earnings and for this Jason, first our call. you, you us for morning Thank

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

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

Gregory Heckman

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

the will about questions. for opening year Turning share how we're more to into then highlights before of thoughts I'll the line first and the slide performance. for John go remainder the some X, our you'll with quarter who see over the closing call. agenda for thinking your detail before start today's some I'll handing on to

great team outstanding crush our the did our increased of X. quarter start to downtime. to the for slide the unplanned delivering continue start we a brought new momentum a we our assets. We we're our our us, into capacity consecutive Thanks for Operationally, quarter, global to to across an execution opportunities positive capture the maximizing earnings. Let's seamlessly sixth to chains, fantastic and We value continue a turning team XXXX. utilization in of job off watermark with quarter, and reached by of working overview front reduce high

executed marketplace, agility innovation, well customer We through outstanding in and also the service, partnership.

communities. our and And patterns. top pricing regular to encouraging with case continues trends, parts regardless do, of over we model few incredibly of of who company is the with reflect consumer quarter and continuous consumers. from from seeing more there's and COVID The proud working and farmers are managing always recognize we're straight delivered a get achieved, to in regions battle more customer swings their dramatic to to both results past the that strong we're our across be much team, our quarter. quarters point. We're this global world, to And easing, committed we've of are still always very pandemic begin families, are are we in COVID all of back range value Brazil to an in pandemic. risk demand because, center of industry value the of restrictions factor path the as integrated effectively people India. as ends thoughts In what customers of line during our life where Our those the while customers the the doesn't to can unified benefits in safety and the of increased a on especially to improvement chain, especially those still products the offer a behavior priority our in a in and most

Turning our now to segment performance.

note strong detail seeds, and more operating changed Refined last tightening directors call to John to continued quarter, quarterly And walk Oils we of for Q&A. structure. $X.XX. board quarter, merchandising call positive especially new you'll our dividend, the align chain quarter increase in additional momentum this Specialty chains. favorable were approximately and I'll supplies, XXXX number before X% And reflect the market approved on on a new with our we and value closely morning America, to delivered and announced results detail. global and the customers to the EPS in now the our our in trends. results saw soft record particularly later we better oilseed business. our demand, manage in opening some first outlook over forecast thoughts full-year our call. Agribusiness. more to But call go the that had our common a and value our by adjusted on strong way driven of results over reporting reflecting North you particularly benefiting Earnings markets, across primarily a In from week, focus I'll handing turn improved John favorable our first in additionally, that that more raised share segments financial of processing, our before our to John, our innovation. into with As we the remainder our we will through

John Neppl

everyone. morning, good And Greg. Thanks,

operations, the and oil reflect have crush has now merchandising. Fertilizer of soy reporting have the new to how oil in and included origination announcement the activities results related may with processing segment the segment eliminated, the align in to component we Agribusiness. changed grains financial manage Within have processing previously chain and seen seeds seeds soft our is to model grains. and addition value operations those our in last we realigned Processing, Agribusiness, review we business our seed in plus information. You included been and with that fertilizer, principally week

our presentation. can appendix the slide details earnings You the note of press and additional release two find of in in

highlights Let's turn earnings slide on to our X.

quarter the XXXX. was in per loss reported first Our quarter first share of earnings a compared to $X.XX $X.XX of

per in of refinery, as $X.XX oil reported Adjusted the announced of a well Our include gain sale packaging EPS the Rotterdam results was also share. as Reported mark-to-market timing net in in Mexico. $X.XX $X.XX of results the were quarter in previously plant our a Specialty difference driven related in earnings include million to EBIT, quarter year, strong segments. $XXX and in the $XXX our Oils versus interest the before the prior segment performances year. prior and and by million core Adjusted versus taxes, $X.XX Refined Agribusiness or

increased team by soy seed crush flows. quarter As higher origination. outstanding the for processing, soybean US trade was Greg noted, value the reflect and the results an by chains, which our capacity quarter crush Agribusiness performance and all in improved in In soft driven execution in results managing contribution included

performance achieved Oils, driven crush margins also volume of soy and as value our strong recovery food from as corn utilization, periods industrial primarily capacity offset like all chains especially and reduced early oils, brings crush more favorable were and Australia, and global demand, financial origination QX and benefits, we've improved In driven the increased America lower rapeseed market margins we and Specialty in outstanding and refining our logistics stage volumes. This in strong execution record increased improved experiencing. Margins in and were execution Refined management. financial than excellent service Europe higher. America strong by benefited margins reflecting regions, in In between and been wheat addition, higher America in and South immediate and teams. output grain results our In coordination reflected commercial and services trends. downtime sector. export improved merchandising, volumes by and business North well of the from renewable risk demand North and Higher diesel Results unplanned

and America, prior lower India due to down restrictions strong North margins. due to to new Asia In COVID the both in results benefited were cases. reimposition surge from primarily in the demand of Milling, in South

compensation sugar in and venture which Results to volumes COVID in Prior-year FX allocated to less results also not and sugar accruals, depreciation higher during local by was real. from our related benefited in environment insurance reflect impacted resurgence the to the segments. of joint joint sugar quarter related bioenergy losses program. favorable other in primarily currency. negatively decrease our negatively increase the Brazil Brazilian were Additionally, a the of portion captive The out in ethanol The in was to cases. million was corporate volume $XX the for the venture expenses of prices and approximately by due higher translation impacted and were performance-based

income. expense expectations. tax was in income the Adjusted prior for due higher quarter, compared XX%. was million to notable tax the tax for expense of $XX benefit in our quarter $XXX effective to the million expense income the an items, line pretax million $XX with was increase income tax For was rate interest Net as year. for of The

Let's to turn X. slide

professional million, to our performance past restrictions of also our the hard of that lower approximately the regions for was we quarter and, differences costs. four realized to along and one Slide improvement to teams and but XX-month continued which new the our as recent also not alignment continuous SG&A positive services benefits year. of $XX related areas see culture a first items addressable model Here has brings discipline. timing This savings organizational shifted operating period. you the strong earnings adjusted global the underlying of only We XX% with SG&A compares a prior impact COVID-related trailing but importantly, across and our travel, capital such environment, operating to over for and improved reflects notable trend costs. years X employee achieved indirect work can most

X. to slide Moving

$X.X amount, million the After includes environmental to of adjusted safety, approximately funding our period, operations. BaaX. and most past us sustaining approximately million to credit mark-to-market our from growth timing of we $XXX at retained strong cash cash CapEx, year capital objective allocation our million $XXX our first the million $XX for adjusted dividends from paid cash discretionary approximately X operations $X.X the in allocating had shareholders in our items maintenance, cash and differences $X of million details obligations flow dividends, notable recent excluding CapEx, BBB, rating and strengthen were of which productivity cash of generation common billion $XX to trailing $XX retained of enabled balance to and funds flow support flow. available. comfortably and For Slide leaving sheet and over health Of invested we billion to funds million in This preferred quarter. this XX-month generation

flow of slide proceeds cash to XX. of million quarter approximately $XXX of assets, including cash for more of than The $XXX from the cash retained sale other outflow on this capital. and Moving sources, working million offset

net As debt $XXX result, a decreased million. approximately by

also availability to credit under potentially support with $X.X lines billion, capital to took working action higher committed leaving liquidity increase needs. us We ample to our

marketable during inventory, see net slide return sheet our where equity. metrics. quarter can on of to being entirety Please our debt the balance for slide the to readily our balance with a of you funded XX% As turn with further point XX, funded strengthened X% our we RMI of the XX

points between XX.X% the For X%. trailing we points to percentage X% of tool adjusted adjusted and generate in of target cost above months, X.X%. incremental effectively The ROIC average been as was RMI operations stated average well widening or capital XX percentage was using RMI of weighted a reflects have weighted X.X metrics our how over our capital XX.X%, spread our ROIC cost our of over XX.X these profit.

slide XX. to Moving

discretionary strong strengthening yield shareholders. and generation growth balance flow our to that for available in Our flow to cash flow increase, investing have cash and cash sheet, returning continued is reflecting

yield billion we and a flow trailing to $X.X nearly almost the XX%. for of produced Please XXXX XX XX For flow outlook. discretionary months, a turn cash cash slide of

per and and full in share. EPS remarks, adjusted down be year forward ethanol to his are and strong account due expect expectations. North approximately in the year. trends Other in up in Corporate a Brazilian full-year are quarter from based curves we QX outlook we've from In market Milling and to Results our sugar positive our results in full-year strong $X.XX bioenergy to results our generally from to line taking venture to $X previous prices. up non-core, last per the year our be share following expected Specialty from to increased contributor, to higher results, expected and joint at into previous This expectations, with In is mentioned first conditions, Refined by Greg outlook positive XXXX. America. least driven demand are full compared on improved In and As significantly expected results our be Agribusiness, and last sugar year Oils, results and but

to Additionally, XXXX. $XXX to to of With effective range back closing following expenditures $XXX over turn the Greg range adjusted and the approximately of I'll annual XX%. An company interest some million for million. Capital of the expense million. $XXX for million expects in rate XX% million, tax of $XXX depreciation the comments. $XXX things range in to and the Net in amortization that,

Gregory Heckman

Thanks, John.

I perspective want provide opening of Before to the balance some to Q&A, call on XXXX. the

with be around As quarter first performance and we from to $X.XX. full-year what we the noted, EPS curves, we're forward strong our see forecasting

While half the we back the of don't have the full favorable. demand visibility trends market in and are year,

We foodservice in US from platform. our as help us the the work the demand post growing of we meet expect COVID diesel type higher to well pursue to demand we've that because the and increased several as ability projects industry done, volumes of of second improve the year. will Because of the countries, renewable now continue have half in

ever as our core disciplined, sustainable oils approach business. we our number and our a the recognize in also have but is proteins providing taking and businesses, fats of thoughtful and enhance focus and more various on we're plant-based for are invest of We we stages execution specialty efficiency and as team's of staying demand a business entire oilseeds We're in model incredibly to we products the projects confident have grow us our proud we're Bunge. opportunities continued and Bunge here the to the team to than capabilities The our connect continue I leadership at to consumers. business farmers

to we're open every making your there's always work done, call are the with more evident. that, day be to And and While questions. results the I'll progress

Operator

Instructions]. [Operator

Sachs. question Samuelson Our first from from comes Adam Goldman

Adam Samuelson

maybe the outlook. to John, on Greg, updated hoping a I bit little was dig

I'm oilseed strong. on supplies? over have where obviously about change full-year first market think side realized the quarter very pretty positions at on outlook volatile, and the soybean performance outlook much tight to the hedged First in versus the on how margins of given especially board balance trying the year, the least crush quarter been changes the your just did was curves, based forward

Gregory Heckman

record way how pleased Couldn't the here what to XXXX be QX consistent seeing more And with a carried into we're right, momentum the done, and team continued with in the execute. we've out of they've going that's to curves the confidence what to side the ahead then, number raise currently, definitely and levels. we the momentum. hope on from to as There's tell help on versus you seeing the we're to happen, outlook go going the we to reopen the but market we're forward given demand pre-COVID while to what and we're us things is said, course, as getting of of second seeing $X.XX. $X half. side, we to food – diesel good And demand we're close back renewable here a And really America in little to North oil bit from [indiscernible] expect start in feel that the

to early year real comfortable feel the is in as go it even and ahead the as So, number up. here take

Adam Samuelson

that be you've how demand veg crush, incremental flow you also diesel something demand refined on to renewable on get a on expect prices off lot perspective year-to-date. teeing just near oil that just the oils should would in Maybe which think premiums more specifically, the renewable becomes the visible, mentioned, P&L both in as a be about us refining we very cash seen for Help in strong from bottleneck feedstock chain through term. seem producers of oilseeds but diesel your to side, a critical piece oil on

Gregory Heckman

see connected it's excited our markets. of globally, benefit multi-year we're sustained really basic the going really all one the in We're the that system. to guess and oils I oil global about demand is things being of the across to

ability get then, that be is been of those fuel have course, course, they for starting done. to side, had North they've who the side. on both is reformulation have food And the the reformulate. America do where where work always of flexibility Of And in on majority the the there'll the here to – to

its as So, adjusts to we'll inset and that doing multiple be work customers some working the the to supply. place. additional with market that get with our But in market price is takes years

this, about meaning excited really new benefits demand. of multi-year the we're So, with

Adam Samuelson

I that one just quick on in could last If point. one squeeze just more

especially crush bunch new some the seen of announce, side, in Canada You've competitors canola capacity. on a

the margin capital expansion or about the oil curves, think refining? debottlenecking across crush of would are to at Bunge consider just commitment I'm trying that against the anywhere forward we near more look side structures maybe where opportunity. growth capital you on at would As kind and

Gregory Heckman

the to be gets And any already adding lot made, Historically, footprint. refining doing this you'd to expect oilseed add of have even some get then it We'll things, greenfield, as you're industry crusher, work that we optionality announcements a projects have spot see work – those and doing a able And some A in crushing to sense. or of we're got built. We're We're the when new refinery where a react price it's do we'll economics. starts and/or look continue place. some [indiscernible] as to ongoing don't the market it's economics, have long-term of discipline one and industry be supply of at make our crush really number doing. because debottlenecking demand, kind to leading add this where you going things in to put do have its the to to maybe we brownfield off. far as

long thing put to we've do is building the be plant we're going partners. to so, right the ground, right got right sure with and the with going location to couple the in capital term customer And make Because returns. when the the that in wellness at right the look we one we we're

Operator

Tom from question Next Simonitsch is Morgan. from JP

Tom Simonitsch

record expecting soy this are for rest How impact you the complex soybean global year? QX. in a exported products of Argentina the to Argentina of value

Gregory Heckman

And Argentina, should on be of from It's that supply that hard. time price. year calling running when Definitely, market the market right? has it's that needed forward

still be to to kind farmers devaluation, and with we much looming the the expect think pretty there's election of mouth. I coming up hand

And in running don't hard of here than the so, did balance year. as been the industry XXXX think we But will have the in we run for harder we XXXX.

I think as for you'll see year, full second Argentina's be at of end won't half. as half hard year, but in run the XXXX the the the that harder first probably

Tom Simonitsch

around just full for to you earnings get year? $X.XX Could color to provide the cadence quarterly the some more the of

John Neppl

repeat you Tom, can cut out you little a that? bit. Sorry,

Tom Simonitsch

could some earnings around to get more for year? I cadence color you to of full said, the the $X.XX provide the quarterly

Gregory Heckman

it I halves. kind of look at in

we're through performance, bit a opposite. of quarter half. XX/XX, visibility XX/XX half, was volatility out second push going lot move liquidity first our certainly the our the things split of that's we're little half/second a little We looking a But at current And are into bit look we half, last on based about start to But first think less it. a the year more looking the probably the which strong second and year outlook. market, between and we split. XX/XX a largely a first lot I lot. there sort were at is around year, to of a with in of at Obviously, and less how

Gregory Heckman

talked is thing people some to also which the the of on try focus the around within is reasons quarter, to one on LTM the statistics. gotten profitability and will we've move around As before, it'll move we quarter this business, in chain get from value one to

Operator

question next Barclays. Benjamin comes Theurer The from from

Benjamin Theurer

now to one pops anymore. just it some First ideas is to non-core out make a is around around non-core, all, that talked stabilized reported want actually business. contribution capital row to congrats basically in on get the results. of and not with what move third the to quarter Obviously, about further you And thing I remember positive here. forward the be allocation you've going then portfolio. up of that the that your It's strong Question your

us if business? bioenergy you will you the update could So, of quick be stand that divestiture think in give my on of question. you a the process where sugar, That first

John Neppl

of really the that sugar a business. team And BP. that first joint is and goal We're part partner the of our is We be happy course, to assessing of the performance. great improve are venture And as obviously, business doing job. to a stabilize

currency communication business. But we markets exploring a on And at anything a today the before, before certainly based with ethanol actually going strategically consistent bit some options we we're when's better that pretty we Brazil. But and run. impact, our But, the here interesting sugar As to a can have there, the important. obviously, are over on agreement. obviously, time be from right benefiting thinking looking been And ago, than our year is point we're bit has of we we little But environment. timing long environment better some had said in exiting are time. really about execute again, COVID

time. we that right exit So, plan to at the business

Gregory Heckman

It's the look, lowest And get we're parts portfolio Just from never really constant to over. done. never broader the we're a That's actions, portfolio evaluation. better. of challenging returning

always So, that we'll continue to have focus.

Benjamin Theurer

that you and are? green with money balance to that now just for approach bit to you meat from businesses, to sense further heading disciplined what it think within might work little it where the it whitespace? remarks to from alternatives, on into of about you're Where and dynamics the strong those where Is then in whatever areas, you still put capacity, ultimately renewable light give look the investments, with the a oilseeds diesel? talked go can little Is done you a flow sheet cash Obviously, on of your a a be underlying do perspective? you've into cetera, your allocation of do grow closing what kind which think within bit and have benefit regions, to capital et your which in

Gregory Heckman

I tell you.

our and to have – grow. continue we global We operating Because we timing feel network. changing goes work strongholds we that in America, course, on the and earned we've shore some And And to fuel. we have up and that and look about global of the right fortify the now that's the the say, with and And to to what's things into and transformation that of our footprint the flows, finishing great of are as have where going to to need our divestitures performance it's have thinking. some the we'll excited North at to where we up. continue of continue need we to

that trends so definite some plant real proteins, mouthfeel meet a in plant but at, bite they per in you to But and taste And clear, And to customers. two protein creating demand growth strong benefit exciting be And has that a only to along. growth. there's them renewable capita of ticks forget, the that look new then, have still continues pretty whatever sources not be role the create those and the demand population to that what oils and supply on the that of and and core income will we're in course, two don't giving the products believes the think We're opportunities. distribution trends opportunity It's not So, thing plays the be our to that's and demand of And people of kind our oilseeds diesel, side, for one that's continue protein. place. be where multi-year network. the that and everybody there. the got already fats and with And to love. happening seeing that's place there. the going demand enough about adjustments specialty that's plant those on got that and That's working

and products what's on standpoint that's lot happening platform. lower So, to And our the of carbon sustainability is opportunities we're us going what opportunities entire and see food fuel, there. the the and index feed services course, to then, products, into lot of they for going going a create that throughout as run – industry, think we a of gives

going choices excited the and for capital So, execute, and growth. have continuing the that for we're to team that the about competing to

Operator

next question from The Moskow Credit Suisse. from comes Robert

Robert Moskow

on as China. Just of guidance. to exports specifically question up extremely has because another fourth setting well Greg, pointed quarter competitor your to

Your quarter. footprint this in have something difference the to I that a export about there guidance quarter? how about will strong your Is a capitalize more little something world? less is Or a conservative in it, you're in looking style guess, of environment at seems easy to make on terms fourth fourth

Gregory Heckman

what at going It We're looking the style forward hope issue. be Yes. might we curves. happen. not is a We're forecasting to

think here. they message we've everybody I got since we the thing us one that pretty the I approach didn't got promising think And want couldn't one consistent we was consistent deliver. that the – things is

this we QX we confidence So, said it that $X think when team. this way it, $X.XX. as if before, we number. see here will, a the some to as chase find look, team just I've got And And opportunity from we've forward it and did – lot way in roll record develops the from of last to taking a is will year's

Robert Moskow

And expect with XXXX. $X at up to deflation like and ride for should beginning that here terms like time? just $XX, and not we corn just the a it's follow-up, down more wondering And from for have of this I'm really Bunge. above hurt it's feel soybeans time if just commodities Certainly, what Is you a any time period? different that learned in lessons

this how time So, around? should we it about think

Gregory Heckman

team lives is going But thing leadership irrational proteins this that. the maybe And lived the that. different industries cycles, and and change that and a biggest figure some we've through demand that there's we're friendly our think renewable a sustainability long-term exuberance. new things. time. And look are other trends is. in in new every food. some is discipline things. have and plant definitely demand And companies our these it's I'd say a get like, it farming. in focus we really to new all to market at cycles out. little I regenerative this to diesel. time through And the is And in and some There's on ag couple climate is trying a are job what when And One, the this time instill How key trouble people, do when because to

spent And so, projects you'll thinking the that that don't really mistakes just about what we do, years, and that will long the see to we cleaning we future. some us sure long do the to the term. so and about time, be they the some we term very make up stressing disciplined that in we're want Frankly, make things last two for going return

John Neppl

went John. up to down at is this was sheet the on in people as were the for we I what substantially with that's the manage on. But And add It financial that, we really with think the both balance years to very And ended years of Rob, after couple up how on And of for point, course would invest. the as over a markets struggling, it. of XXXX, really came of and a on strong about after XXXX. balance we we off. Greg's just opportunities way XXXX, XXXX, opportunities. was grew to hunt sheet the our couple important end in the a way crisis for looking then us,

Operator

The of next Bank from Washer America. question comes from Luke

Luke Washer

at I just to take guidance $X.XX. at another stab And wanted guidance here. great your

about how is this talked your expectation You related to for crush.

most just and relates goods, maybe things. processed of course expect you What elevated global significant crush or of crush see is Or China variability trade that your it goods volumes terms the your specifically being your margins So, in side, to regions? over maybe two exports? And in then kind there for merchandising year by do of the does on how the region?

Gregory Heckman

anything, let there's Yeah, you in. fill me John, if start. can

We on posting every and had seeing it We're side, with quarter on just year-on-year tell record a me about – improvement. the let you how region an side. the don't food just we're Specialty food the On Oils definitely seeing improvement. Refined

got organic the of our regions. efforts strong in And there, to we've growth, book a really started all so, we've a lot downstream order We're unlock potential. seeing had improvement and

is Argentina the food harder run increase than expect big as about that side. part this And we on talked earlier, net-net a year. do we last to of definitely year then, So,

that'll So, question, part volume. additional then be second And of the sorry.

John Neppl

the saw balance on Q quarter. respect first consistent kind balance of be side Q, is to very what from margins I'd With we good the year. it'll the little over year, the soft We see really say do a but based but the Maybe especially, the of margins, in as strong there. the elevated say pretty good in lumpy soft Overall, on and the saw in to those soy we QX. the margins strength, But how this of year versus of the not over margins area side. we we a expect fairly the where on really the soft the I'd we'll side, ago. we're curves, big year over Canada, good once saw on seed obviously forward balance in Europe year opportunity take

Gregory Heckman

remember, margins. asked I crush about you

right If of they're America the course, then third, the look of course, in then, volatile. second China world, with US. of And in the the some now. crush you that South margins the that's best to demand, crush very but over improving We now, around are we're and expect improve China. and margins there happened hurt Brazil those wheat in seeing feeding Europe meal worst do

So, it, kind it how how that's see of we we setting up. see

Luke Washer

more Maybe just it's like one to looks conditions be delayed to and on going quite be The crop Brazil. persistent. seem here dry corn Safrinha

that think expect your ability Or back soybean detail oil be headwind to more you in on soybean with the year? about provide impact or from the when Is value an supplies business, to opportunity tight can half particularly your to dislocation, you a of provide rather you customers? potential this your how this too. you could being maybe So,

Gregory Heckman

we times for volatility. one us. of No, is help this Higher good is Higher volume thing machine global dislocation. about definitely opportunity. customers here The that definitely during

little that's when to environment a XX:XX, bit out that with development later, we've of being wet, And now right what yeah, So, going is there drier. definitely a you're describing it's put period the in usually we critical that. kind in it got got

worried yield. some about So, concern – there's about some

crop how weather be global depending the of develop, destination have kind the course, late. then, and when [indiscernible] how off And corn will in a fill comes volumes market origin that driver So, in to of will shipping. which price

Operator

Next question Stanley. Morgan from Vincent Andrews comes from

Vincent Andrews

and suppliers cash, were a the quarter less statement Could and you you're of sales at You from little advances prior your Brazil. already use. touched secured looking a farmer what Argentina, flow little use advances bit about I'm was of in just perspective? your bit on a to on in in maybe seeing actually talk was cash a source selling the which a in but And of period, the

just Or about material wrong, decelerate thought talk way? would have So, Brazilian maybe but have maybe a have those farmers that seeing? it, maybe would numbers. I been what I'm But are bigger starting in would to finally you the selling,

Gregory Heckman

A where aggressive compared with farmer more And to marketer. levels, prices, behind year-ago of Brazilian ahead been gotten we've not year last has of little year-ago these the a bit a switch got American you've And as fast. marketing the levels. North farmer

allow doesn't detailed as more John those. answer far those questions, to me As

it. pass I'll So,

John Neppl

crops don't on and of As selling get as on in more drop whole bit and side. deliver we very Brazil. still funds ahead financing clearly, We're those slowed a And then see in But maybe Greg start they're fall a they as delivering numbers QX, advance things down, lot generally. do And see to Or you and farmers harvest. down farmers mentioned, as in on in in a lot. QX, crops. we'll the quarter, dramatic we farmer active advancement and into QX, the slowed of the QX a has

terribly not flow. cash of So, in the unusual terms

Vincent Andrews

Just in to oils service. food a and follow-up

As of running lot operating if been we're foodservice at or for up painfully aware, very all. have just at they're of a rates time and outlets shut periods low all

build inventory folks think those think could the need get to that again. to reopening rate occurred presumably, it levels that first a they concern? there's XQ? customers So, operate presumably, do? a takes growing need the Is you to how inventory to more be to to run Or foodservice that do you they into in a those where Or long get tailwind Do inventory, quarter? just

Gregory Heckman

and crews some continue the slow balance there definitely, railroad then year, truck little It'll at had side a bit weather to little the of Yeah, of in the as place like half. levels. a gave in book, the the pre-pandemic look the may than here different that's levels, be do saw But expect in the above pre-COVID volumes food here us then, where so It settle at And out March at back we come back home good. we historically. was looks And volumes the getting chain, And be service think we up. fewer smaller slower we than QSRs to big the to get good. order I bad looks the confidence thought then, may battle food like recover. service through back, food we dine-in the the when more see as on and come Feb. be are where then, which drivers probably And we to their and it going out the supply March Jan we share

Operator

Bienvenu The from next Ben from question Stephens. comes

Ben Bienvenu

meal I specific on side but to of Initially, China, soybean wheat mentioned the the want you ask demand demand feeding then equation. for the to reduced. being the broadly, more substitution,

guess are utilization domestically? that just expect to broadly a capacity more the you of you that Do mentioned better. look better gets and primary or bit protein soybean those global US, in margin you up little a that grain, the demand there firms quite of the across kind think ethanol, You of a users because As recovery your get footprint, meal I and here favorable. downstream backdrops market

and would But environment hear. any seem are where doesn't your across we'd end particular demand at an So, to global like in market? yet you in footprint That be anywhere any it helpful we're all demand see destruction seeing destruction.

Gregory Heckman

continues to Brazil the as, course, continues No two an of they demand BXX. Demand side. be oil on to exceptions adjustment The to made we've from side, about Animal well where be good. the BXX destruction. talked as profitability meal are

about. steal again, and feeding But work. fed wheat you in see the Wheat it's see as on a now. That's It's watch But demand comes we've We've ration, from [indiscernible] a And course, DDG. the that's animal adjust. they X about us, if cheap, meal side. got And But structural issue. profitability a good then, of the long-term the that And little COVID. on temporary did it market, ahead right Brazil side as that. of we historically. gets But of And of its resurgence points a in the were other on talked India higher been we China protein primarily kind good not so bit back then, we'll said, does is that demand ethanol comes the bit stronger be that corn. the and we'll and comes a back. soybean than then watching of with little and And price thing.

pretty feel things. about So, good

Ben Bienvenu

I'm capture a fertilizers, kind and Second the lesser is but that it and terms that participate question to within just processors to goals strategic to a does whether lot discussion engagement strategic ESG gas in about partnerships greenhouse present make ethanol What of your for fit? it's of extent, large projects? reduction sequestration. as makes there's complex, in emission and and all opportunity carbon in of talked curious, you where sense or In broader initiatives. with related does been goals,

Gregory Heckman

the the platform the just consumer the carbon industry. such own to what we I giving work And and fuel supplier – to own but they wanting they some everybody then, farming. to an friendly, change, there's and fuel and And farming food, focus back carbon. as low their to to But by through, We across going think a to feed more all the continue we'll producer opportunity. huge to continue the value believe practices I our get be the climate on our be feedstock continue that's more in and really usage, around we products it's opportunity a see want services. carbon think and of There's think really lower that it low way going change products about starts on it's wanting regenerative to

we're huge and you've part into be got right the pulled to make is got all that that But through value here And going the right? see a step to help value you're investments. way the think has industry. That's chain, demand. producer of And consumer. the Change new the just and good, enough I place be smart to to the innovation from across right we're to to the happen.

opportunities about excited that's the going that new create. to So

Operator

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

Kenneth Zaslow

how curve this when think One into and does about actually the develop A soybean curve, questions. the oil progress? when couple forward it'll in is, do that is And from diesel demand you point? do you think you think there of renewable how at

Gregory Heckman

on A – it it, part plants half they book, comes that big XXXX to you'll see I got out, think out out you reality, think, then I inverse we're But XXXX. in becomes come play the tightens As as a as market And online, it half. the market. seeing up. it a as right? second the the be and it's see into second play then of of

Kenneth Zaslow

curve that than next that now. fair? you're more actually half, you it forward the seeing in you'll So, over think it the see Is

Gregory Heckman

work. But, you'd of The is do market is to today. people telling to the a I yeah, believe. what have But that's No. lot going think its That's market you not that. believe what

And what watch it we'll to develop. so, continue that's

Kenneth Zaslow

key second you is, that timeframe, CapEx, That'd projects what you've what quantitative returns we thoughts on growth put what can so type talk your be could that. were the and get about The a helpful. question over done of you'll little

John Neppl

facility. More of organic projects we're right growth really inside now focusing would on say, and the our existing I are debottlenecking smaller, projects

the double-digit a those this return. are everything do But But underway look point. until we that the run, hit what running, year. long won't next that lot at greenfield certainly over double-digit returns projects year in nothing additive term but startup, and So, projects long expect. projects ground first be we is of on those we obviously solid, probably A needs they're today of at never

now right debottlenecking been type So, we've that's is doing projects. focused what really principally on

Gregory Heckman

When are and or brownfield but can do the you the rate. those the greenfield, lowest risk about those quickest next and the assets, that got you to meet those returning all into looking debottlenecking, if a category hurdle it's is whether you're that think to they've highest comes

Kenneth Zaslow

think for appreciate I XXXX incremental about to it. it your number. all there. by XX%? And to as X% in just base to I'll comes how go that In XXXX leave CapEx? XXXX, XX% some out to X%, that I in, be do How with When plays think XX%, let's you about the CapEx will X% back –

John Neppl

talking impact CapEx So, that how XXXX you're will and XXXX?

Kenneth Zaslow

things Yeah, diesel, will all infrastructure No. for how Look, the laying renewable pea on you've be that XXXX? been returns, of but the protein, down doing. some incremental you've the been

about hundred think XXX? of basis come a in fruition XXXX, Is to just Like, of some that curious from going these thinking XXXX. couple XXXX points it's you're growth? see worth projects? to in of I to worth in it what Is

John Neppl

good a Probably a we're year more spend to about going little growth think than in $XXX it capital. this just way to is million

to going online next year, that's it year. of of some early some come next And late

Some of year. is the It's it of little a space. that growth. maybe slower Part even the following protein bit

I as type going will Some that are of historic be mentioned before, projects it be debottlenecking in, fairly quickly. to

on a by return probably be by probably next to up be the end spend majority the double-digit where to thumb year, we would of and year think year. of capital rule I fair ratably of assume a of this probably will year most over in mid lagging of at next and running capital it, the end next

Some of a list beyond projects. of lot out detailed of it a it's will But that. carry

answer. just hard one simple to it's give you So

Operator

would to for the There question-and-answer are in no our like Wisener closing Ruth session. I remarks. the This conference concludes turn any back queue. Ann more to over questions

Ruth Ann Wisener

interest Thanks for reach us. you Bunge. free if to And to have out questions, feel in any your

Operator

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

now may You disconnect.

Bunge Limited (BG) 4 May 212021 Q1 Earnings call transcript