BG - Earnings call transcript Q4 2021

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Operator

Good day. And welcome to the Bunge Limited Fourth 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. ahead. go Please

Ruth Ann Wisener

And for operator. for us joining Thank fourth thank quarter morning our earnings this you, you call.

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

Greg Heckman

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

line it I'll three. then a John, before then share to Turning on of your to Then slide look the performance. detail into the and over years the go closing into agenda some I'll hand share highlights with thoughts I'll in start our questions. few on who opening XXXX and more last XXXX. some will for accomplishments

proud our deliver in allowing to outstanding and an slide team of with overview to year, results start of they four. I'm EPS us turning incredibly of $XX.XX. Let's achieved adjusted XXXX, the the

of is supply in platform by proposition customers. successful stronger Loders oils chains Loders goal resonates and building through supported became to Bunge's environment value footprint the changes believe relevance X regional culture of we that company's the was business. supply divestitures, next the Creating moving The Croklaan our chain. direction, team on approach company. to with And ourselves. had solid and and global sharing maximize market resources the and growing than rather enables of and consuming than also to One also end-to-end a began this the a the best Bunge around that a act. value with had evidence the Our competing Once way is to were and now base the individual seed of model we did the have pulling portfolio customers combination is XXXX, transformed visibility which both over on but the a innovation capabilities, farmer of businesses the of with not one some an years we after would in dynamic fit Oils efficiently global same ever plant-based with from grow. our encourages that a the steps first assets lipids practices, our is the we This customers oils work our strength operating last business transformation in improve we've to speed we're at in Bunge in globe, creating and industry-leading serving information a more we and and locations allows best which number more the assets the more portfolio our team's performance collaborative that's legacy effectively. ends example clear. of use focus to When a tropical of all us the that chains

our We business. COVID. other, systems best in better and the our XXXX. a management rewired them and had on budget oils across also financial to XXX In with how entire We crush our spirit right carbon-focused throughout it former decisions. delivered CapEx data, way: methodical on targets continuing the team organization. way embraced XX% past improve doing used we care records we the visibility over decision-making in safely, of and we the achieve accomplished million supply the on approach record XXXX, absolute And volumes. all year in discipline in performance greater in team of capital and time. of used port risk delivered decisions improvement same $X year, focus XXXX also reduction projects the better to alone, commercial, in was so for our for In than while in the of this continuous and organization. have The We've and - While climate also the a that's with we carbon-focused refining Taking team that emissions set our science-based Loders each the them We're segment evaluating carbon the our information to structured operations. volume, year total chains. can we during And fighting own announced especially change operations to each make

path to our targets. industry-leading commitment chains Our a is in big supply Scope deforestation-free part our XXXX to have of X

across stakeholders a targets. with at other refinancing facility And to closed change supply tied entire of credit sustainability on we're also actively chain. We the scale promote engaging to the

grow we focus make tremendous improvement, to While we We'll certainly know we on made work finding and done. move stronger forward. not ways business our as continuous Bunge is the progress,

the across specialty oils full year were Bunge's and by full with Now let's consecutive a performance strong in driven quarter. and execution to The and delivered a Thanks efforts, earnings refined team value slide ninth trend record posting their turn five. Agribusiness outstanding throughout chains, to of QX operations. Results positive for results. Bunge an delivered all QX year

over our want spend outlook to I the for moment handing call Before to a XXXX. John, on

earnings we at the detail, With $X.XX financial EPS the for what with through on XXXX. call We see which now year, the on the full additional conditions highest in to second in to John? forward and to will year that, adjusted history. close walk Bunge's expect in market will I'll some Based then we results the expect thoughts the least over of favorable result John be curves, hand in deliver ahead. continue to

John Neppl

Greg. good And morning, everyone. Thanks,

Let's turn to the earnings highlights six. on slide

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

per as in taxes, oil results include soy milling classified in demand. Mexico charges execution oil quarter, Our to $X.XX crops which year, year processing, as mark-to-market the million $XXX higher by business of $X.XX from with global Agribusiness year the was EPS value sale. strong strength of share last quarter. held core wheat EPS impairment $X.XX well Refined in XXXX. and fourth which large $X.XX and in quarter vegetable related per is another value $X.XX and Adjusted versus North fourth prior strong grain reported in EBIT, $XXX had in Adjusted $XX.XX before quarter million Adjusted versus interest meal and results notable per our year. versus year XXXX chains, year. Oils. for full were in Merchandising the a $X.XX in ocean earnings higher $XX.XX In timing were difference Full versus was was earnings an Specialty as benefited negative crushing, European share American the primarily freight. good all driven share chains or both reflecting and and a segment results now and prior completed and our outstanding strong of softseed Agribusiness with in

quarter during fourth strong quarter a million, year. a lower and than demand. prior Asia from which compared Oils were lower primarily lower Results in driven compensation volume last slightly higher the than America and However, In year, higher performance-based and by more $XX were than prices. Milling, driven ethanol due sugar expenses last ethanol joint volume, year. by lower North margins were of results food lower were in results and driven results more improved comparable Results by in Sugar down by Results corporate was America & quarter year. were were The our fuel $XXX Bioenergy and by to off improved accruals. in finished offset and higher South last margins. Lower than with Brazil, strong margins which driven in by Specialty year up non-core strong million North results margins. Refined volumes. driven to increase Europe, was to primarily benefited America where offset record Other venture the was in primarily

million Net basis notable tax in income December the $XX the was for to expense expense was quarter The last of lower interest due quarter Adjusted average full GAAP decrease year in effective the prior to with for For pretax $XX items, to million the levels. the compared primarily was earnings. due year. year. income million XXXX, was in tax XX, for GAAP ended was which line tax prior $XX debt the XX.X%, year, below lower rate expense

energy Let's years. our X company challenge an especially eight savings adjusted global to numerous approximately Slide was X the employee positive This costs. where the performance you and experiencing is to navigating other particularly and the EBIT of over past We the notable can underlying costs. seven, $XX pandemic considering team, through which SG&A achieved turn trends related our prior EPS for we our are Like and SG&A million, year. XX% past differences compares the see to of timing slide initiatives year over full outstanding by inflation, related items years. when non-employee to of companies, too and addressable

our impact from increased processes travel, XXXX, growth and we to allocation are of in we that XXXX, strengthen the adjusted billion versus working to future higher in expect We approximately details of In Slide generated initiatives our XXXX. can. $X of SG&A value. investment addressable our nine drive capabilities where reflecting and mitigate funds technology, in inflation operations to we capital people,

as strong and performance. managing before, sheet recent is rating highlighted first our XXXX a a we priority full enter XXXX with leverage strong year very metrics. position upgrades and of our As ratios credit We balance our financial rating result our

where allocated These investments per maintenance, $XXX will and is around million Our typically CapEx, second priority health sustaining Difficulty]. million towards we [Technical $XXX safety. run environmental

paid leaving $XXX Next, a $X.X basis. left and CapEx, which and to common we toward $XX billion a with to returns $XXX of we approximately million to million, productivity investments return shares on growth common us productivity shareholders, million $XXX billion, and allocated in dividends cash nearly the shareholders of million flow which in available Of flow. preferred common and $X.X allocate view dividends, to million repurchased of balanced relatively total we billion invested approximately discretionary cash of for $X.X $XXX growth retained

to as, such borrowing excess that toward to will primary more enhance position as areas as Refined more our growth With both as a efficiency some forecast capacity of both in listing greenfield immediate longer segments and shareholders. have projects. greenfield a are which sustainable, is Agribusiness the and term deploy Specialty we now investments, to that our will impact, on well opportunities highlights along modern debottlenecking in and capital focus comfortably CapEx a Slide XXXX key provides, toward and capacity increased benefits, returning with and flexible flexibility balance sheet The in cash Oils provide such investments XX M&A through and our areas capabilities.

Our in to $XXX and previous primarily and XXXX constraints. million baseline supply below resource chain XXXX level COVID-related CapEx was our spend both due

execution update next our X strong our as May Leading our sheet spend our on review are growth in result to common meeting, be as increased earnings baseline of capability. prior as baseline, growth we as shareholders above strengthening from again robust our will balance productivity giving investments our Over the these model well pipeline delays, project to consideration the investments. a and reflect earnings the earnings we our realized, over a expect of for returns our time, higher our up levels well periodically outlook. baseline dividend, We to will and years success

recently a We million shareholders. entirety also tool our for continue program be repurchase to $XXX returning the capital will share of to have replenished This remaining.

allocation and disciplined As we will we dividend with to stable capital a along through prudent approach previously, the balanced a cycle. have maintain and communicated

fund ago. at to inventories strengthening capital, our metrics. marketable our portfolio exceeded readily As cash and This sheet approximately and see from XX, to our reflects debt proceeds credit net turn slide retained RMI, $X.X you billion, year actions flow XX. debt, our significant of balance year-end, by a change use reducing Please while improving a on can working or slide from

of our was XX.X X%. how of in XX The profit. incremental our of the weighted X.X as For points over average to percentage our ROIC metrics tool generate cost capital average a cost adjusted use points was operations these trailing over months, RMI adjusted XX.X%, percentage reflects of weighted spread XX.X% ROIC or X.X%. RMI we capital between

to slide XX. Moving

in discretionary and decline months, growth moderate XX as discretionary undistributed flow mark-to-market. flow of trailing from yield the XX.X%. by cash the book cash For related The year-over-year cash equity a deferred our which well company. the cash XX we and The reflects taxes significantly billion EPS versus than reflects higher approximately impacts $X.X outlook. offset flow flow a as more to to produced JVs of XXXX flow from in cash discretionary of yield in growth of increase the in growth Please slide XXXX turn earnings was

to In XXXX, full forecasted full in down which current XXXX taking record in into merchandising softseed had adjusted strong due year. the mentioned year lower be least curves, per Agribusiness, and at share. account and remarks, to Greg his exceptionally primarily of results a environment year we As margin crushing, are EPS expect from forward $X.XX results

last While opportunities results if Specialty results In in be Refined past full and year, food by to in forecasting of year to to we record year, demand driven up from we American In and North expected last to businesses. are and and expected supplies comparable and strong customers our are another the commodity last be strong driven the year Corporate year, fuel to be market year, In are our same tight Milling, full year. potential by from that magnitude primarily demand not up improved outlook expected European from upside conditions do Brazil. margin-enhancing continue. Other, results delivering see are captured Oils, we in

rate to to range capital million XX%, net the depreciation XX% in and expense the following $XXX tax Additionally, $XXX XXXX, million, of company for million the $XXX adjusted $XXX to effective full for some expects interest to approximately the with range joint venture an comments. in annual of expenditures With million line Bioenergy that, In of last things year. million. are over in be - our Greg $XXX amortization back and results expected non-core, & Sugar to year the turn I'll closing of in

Greg Heckman

John. Thanks,

the Q&A, thoughts. call closing to opening a want to I few offer Before

highly began making We're in they tangible changes business carbon for opportunities lower COVID-XX years we Not including chain. and of the have market. continued The to against our about we First, deliver ago pandemic our to supply grow in I thank excited to continue done across have execute potential. team. but the customers, encourage see do additional resulted volatile want emission the our our while backdrop, so a only the best to our well earnings they've to improvements practices impact to part and the and entire company a dynamic continued we X

we're or growth, focus core fats and Beyond specialty plant-based and proteins. our of capitalizing on business, we our We're food lipids for of culture increased believe continued renewable benefit seeing will our secular we'll from your to and the leadership, continued in oilseeds the investments today well call in we're especially confident innovation that, we're with for for growth these growth up set questions. And platform, areas to increasing processing global our origination oils plant-based feedstocks, capture upside work we've the see the long-term ahead. the in also capabilities us our years positioned for With the open and making three oilseeds demand additional areas. on and I

Operator

Bienvenu [Operator Instructions] from comes from ahead. Stephens. question Our Ben first Please go

Ben Bienvenu

morning, everybody. Good thanks. Hey,

Greg Heckman

Good morning, Ben.

Ben Bienvenu

about want part a to two I So ask question guidance.

commentary to relates the you it earnings provided. and second relates as then as the guidance it First to CapEx

inclination from earnings here context in curves the what be know So like asking for year, like even it least or of at, you your should the historically. this earnings, be question said, the for and or I'm during is to $X.XX I the the looking as conservative, at quarter of first on fourth perhaps quarter, the looked they from pretty seems XXXX. the strong half first $X.XX

outlook that a is seems antithetical the Is the it more kind in for inference provided? is underpins there the sustained next S&D you value that draconian. bit environment commentary back maybe beyond exists Is little tight of the of the anything that strong and just conservatism? the bit chain. Because to half a that so And year the that that

Greg Heckman

Yes.

Let here. miss start I me John, if follow on something can you here.

So like we're little ago, can yes, year when a I here definitely sat bit you think - a what we going forward. we telling see

right, momentum team you're there we're and into good from a Now carrying in executing that momentum some fantastic job QX. The of QX. carrying did

half QX outlook, to see now roughly good second Ben, And look you of at look at same it, as the calendarization, can curves, as start. funny. quite when is mean, as the the what was time forecast it we same a for it's it's the as strong when was see our off And really are don't the we last we stronger looking we last very at I year. the and When we While as extraordinary, of year, a historically. being generally kind business far forward it roll our balance on which

the rolls I quarter guess can that is team the view here, give on you And think deliver got we've out. thing we've time if global is I can we'll you count at execute. And that a the So more. got a we'll the opportunity network, that one and absolutely right it as that

Ben Bienvenu

Yes.

Okay. fair That's and understood. enough

related second guidance to The to part the CapEx. question is

CapEx several over you're substantially next years. growth So spending the more

because earnings, discretionary number all it of this the of so of I'm have put that to thinking it seems the to two, beyond You go outlaid long-lived that you'll WACC, for. stated all projects all you you guys flow of just deploy then back about ability targeted $X of projects - those like And on just growth continue to if intend next you've deploy should some over capital I will you're two capital your cash into meaningfully. One, grind just several it your baseline seems kind discretionary actual that that the that ground to you returns years, capital like the the pretty business, if much versus generate. things. up

And that next so all much. how we have. through the several so wondering Thanks of as And years. I'm about number go think I we baseline that's the earnings evolution should

John Neppl

Yes. bet. You

$XXX I as And million number Ben, can said, CapEx is expect I look higher greenfield and But XXXX. and I of we'll think million XXXX So lot we a we we that see of, year. as - a this in a to forward, $XXX projects. think long-term

going And big given so the aren't numbers have investing our projects probably we today the we're to and impact probably impact the we pipeline on see XXXX and major big until the and that in. that beyond

excited those are about projects. We

certainly there's We recognize the and capital going that growth deploy long-term in near-term will time, that our term We near between well, opportunities. that's baseline opportunity to potential important. to also impact opportunity to balance in and over want as be

or at we'll whether And projects, projects underway, so look things that term that. like we shorter it's have debottlenecking bolt-ons

at, at returning look well But that updating don't to to sense. on long-term important be it And do opportunities near and returns. looking the we job, makes capital returning baseline. if road, our very projects certainly, it positive balance X front, we we well be over we'll down the should if X the M&A the between because term in good recognize as years and we or we'll things baseline immediate As term the believe that the near as or time, have to shareholders as it's

Operator

question comes Thomas Please The Palmer go ahead. next JPMorgan. from from

Thomas Palmer

are up, are to the run that the greenfield multi-year layer in to thanks projects, Ben's kind I X into XXXX? next you've second greenfield the mainly for And to of their presentation, that and years, benefits maybe why the CapEx. Maybe on mainly Good that be Is off, is then on projects the follow over and list that's of morning. list going of Or could is come? there's XXXX question the deferred 'XX, these are first a projects highlighted elevated outlined for rate you question. kind

John Neppl

will 'XX, builds. stages that about our are projects. think of projects this CapEx Yes. on about be X projects. large have will about XX% and in approval. next same in you underway 'XX XXXX, in really multiyear our to it's year, probably it either but Those or that that those But to - spend already But go the the are These XX% XX% year can of here final of spend are that

And bulk so projects there's three of to major that make up four a spend. that

Thomas Palmer

that. for spread crude In And Refined oils, we price a markets, between to wanted Specialty then cash and Okay. on Thank have just highs. and narrower I refined seen North outlook. Oils down the America mid-XXXX from you ask

higher expecting to on a capture would you Just hoping there. hoping year-over-year. the segment drive for what crude your key markets Just clarity Are just the cash driver Were not indicator widen, for profit environment? margin demand some refined of given supply, some last clarity good year? oil on you. Thank

Greg Heckman

Yes. of timing customer It's the bookings.

of premiums of on. as of the renewable in later the So into had the book and of didn't diesel year. - to the of refined a lot start demand the customers we we with last some until benefit when our saw year see majority food we start And already come or higher we the to came refining on the for some year, those

into coming higher we're of course, at the has refining overages. of business done that majority year, as Now this been all

that that's this for why that's - we had we call and have confidence year. that the And in so visibility,

Thomas Palmer

Okay, thank you.

Operator

question America. comes from of go next The Please from ahead. Steve Byrne Bank

Steve Byrne

you? your Or in interested a of the likelihood hear do detriment US renewable to And potential you the leads from? feedstock if billion think on I'm years. gallons view is next be less to you And you. few so, that thank develops comes will the there where to the a benefit that capacity X if that Yes, exports. to diesel

Greg Heckman

number of benefit. ways. it's a Definitely And Yes. a

a we're we like all that in got oils global the fact that we've platform. one, basic and So the

and to from of going is So that as that think and the industry industry. kind coming we to see this take supply that it's I demand everything shift,

exporter from the we'll to from everything oils. go - US importer of an So an being vegetable see

probably in technology We'll see expansion capacity. seed. will in We percent around the of the see oil

crops cover another even soy on will add higher soft utilization And mix versus continue developed see on the footprint. see capacity oil applied crushing of to to that You'll oils. you'll a and probably what's be supply of

the So will with work one and thing the sending its the do is market here investment. innovation and - signals with market the

So we think to and we're focused eye products - that. in of support right of bull's is oilseed portfolio on and origination the that. our got marketing crushing the the We've

position we reasons think from that, Chevron, consumer. is the with with a we're we're JV So have that great in for fuel great and now it's visibility in farmer to also the a one of end process of to partner the the the

we're investments we think where So as as positioned those we we anyone. how and well make develop,

Steve Byrne

you And you in that upstream Would genetics a proteins plant-based that now investing content. It also the you you the specialty really more interested you've comment over could crop It content. be lipids seeds Essentially want going so upstream would about made higher oil The about. with have in that into higher invest some just be there? oil have technology? ownership technology. ownership could and could talked is, to to be question

Greg Heckman

Look, us investments. a number of expertise work can our in take supply to our the partners And venturing, direct that making relationships, to chain. we to and continue from on joint providing partnering, different with

So that profile we a other versus be return the will our risk-adjusted looks like alternatives believe what basis. on

Steve Byrne

Thank you.

Operator

Sachs. from Samuelson go Goldman Adam ahead. question next comes Please The from

Adam Samuelson

Good everyone. you. Thank morning, Yes.

Greg Heckman

Morning.

Adam Samuelson

looking in. color the a certainly where - we your America I how some right specifically the little oilseed regions, South just you've positively So weather take XXXX, negatively. we around bit think maybe outlook, both softseed And the in you about give out you're into guess, I in can got that more of little first, visibility - playing imagine see in at how are environment? crushing or bit soy what half, how as more issues key first and guess, crush I playing now a

Greg Heckman

little expect Sure. into the from to carrying look very we'll soy. of US. QX the in 'XX. good better at it need saw very, real the of But a seen and had overall, you will crop make stronger they're crops And telling softer We - again. We crop, we're now. crop. before with environment new And demand, weather then margins big if crop strong South that new We've gets US get course, year-over-year strong and little structural a American the a us oil another are strong a in a course, bit and meal the had now. an the Definitely big They'll smaller. that be right curves,

So continues to year this year. on but be feeding lower there the are are customers very US wheat constructive. front generally looks see last the Margins we'll China over And volatile, okay spot. versus the end. pretty

smaller the good you the We're Argentina. EU remember, of volatility, feeds normal. that always farmer generally that in which of the some the the feeds And be pretty be is that pretty is impacted course, there. and - global scenario. we're in system which pretty responds our bit. But Paraguay, then little is the Brazil election you will. US, we kind with again, And FX high by keep crop off will is that course, the And good retention in that's So and And XX%, down about And Argentina, will if then, now. probably a right of And margins crop fact affected for to performs. year, then the we'll weather get enjoying closely question crops. very about watching second half how farmer if an how the in Argentina, the that farmer then

reduced You've got Argentine strong soybean meal amount oil then of the and going in there.

our flex fundamentals - the is things. But we plays that's good, But outlook of our so reflected as see what priced and we one margins, the how in costs you've overall, the is structural we'll higher current energy forward. in But being core year-over-year system. can And and global it better Europe see is got rest our or out. see of are

Adam Samuelson

of Okay. sheet the obviously, That's last there's done all a years. of been capital very follow-up I couple good helpful. lot allocation. on guess over balance work a on And then And the

stepping CapEx up You're investments growth side. the on

pretty dividend sheet how for to re-evaluating your seem into your at trying of be capacity on about in could meeting about of leverage we do Obviously, payout the of would annual net sheet cash think an How or you balance us kind least, the how think Can alluded think about business. Just think here. really opportunistically low balance to cash debt-to-EBITDA versus thinking about today M&A the deploying basis, now ahead May. You help you to capacity? to your about deploy be kind much return? EBIT you - net do

John Neppl

Yes.

look so think end balance probably today. $X.X our debt the of at available capacity I year, we at the we additional sheet or billion have of

of think stay kind that, within to of within we progressing our our - to given XXXX flow we again to Just credit well of our strong generate of feel target and kind cash I top pretty On metrics. expect good XXXX. in see where stay course, metrics, we

hold the I confident years terms table. to don't Whether So plan have we're think we something like make good where shareholders last nearer the We the or some allocate leaves debottlenecking it. CapEx I returning up spend feel position up ourselves we going over we to powder in allocate everything very a And capital. for have standard that be but that dry think we I prudent cash, on forecast and few think that about the to and in deploy the more feel M&A opportunities. just of sit additional we're pile is we projects, to there us same term on sure - in ends where it to very we so returning front and we to that that we still or

Greg Heckman

quick comment. one on add might I

think we've with I we're is - changes the thing of one things made proud the the it here. of

had of on now we And can that all of situation sheet, different before, thoughtful we or the about pull done think it's the this us. feel kind with what they have tenor to we've more talk that are for we the going feels and is and that, we really impact can were that with the balance an about earnings levers, those and I what things to earnings. we And of profile got good think And whether we've do I this.

dividend whether the near increasing repurchases stock the it's So or term. more or

CapEx complications tail and the exciting able the about position are talking to those M&A a course the M&A has on I the spending longest be to quicker. in the that more of growth. ones little doesn't between was And has can levers regulatory. being And as which course, do But there's kind in pull thoughtful greenfields debottlenecking then of is and be and greatest come Of on Bolt-on of all through what's the it our think any of a go And regulatory course that have productivity have in and quicker. longer those can returns then we're to earnings transformational in being about. brownfields. then somewhere impact there, of John long-term

Adam Samuelson

Just in you how a high much Okay. Given the fourth Can make kind I of timing ask very just we're quarter? think just of just a again and seem problem, no capacity, powder just that dry to sheet then? is quick that, the we repurchases and phasing given quality have. balance how share follow-up about this clear, sure

John Neppl

to assessing It's every will projects even I call we we're from, to - necessarily it. always the and other do, don't - it I of lot not would and what aren't in oh, sense, continue but don't key pipeline option repurchases. an very we the still going is the it it's an ability to we for out, share us. predict be, something We I to to in even And here look in I'd - the will have standpoint. at growth that to yet, like pointed think we got it Greg as important hard we be is that going going And do when the look do it think pipeline this the makes have quarter. continue things we're forward. calendar I with think when at Yes. do we'll do, we'll our from a a say the of quarter part allocation But

Adam Samuelson

I Thank appreciate pass that on. right. all color. All you. it I'll

Operator

Vincent go from Andrews Stanley. comes Please question ahead. Morgan next The from

Steve Haynes

Steve question. is Vincent. wanted SG&A. around a Thanks taking just I this ask for Hey, for Haynes question to my

baseline as at kind of remind you savings, kind all kind this changed if year, comment level the there being think of cost just up the into were of cadence us Can year-on-year. it EPS? I baked that's relates guess, $X.XX of what a I for about to of was and

John Neppl

-- SG&A of year. we of don't couple years, - We're number The Yes. a increase cutting substantial in costs. the expect $X.X billion after next level a around years the we've been in of last total

increase inflation been primarily looking to million $X.XX the but probably business $XXX somewhere And be like of and that. all the across into it's at total things than and think half it's going less forecast. baked I in that, we're

as immune we - call. in will, of unfortunately. -- we inflation a and manage can. least our we to the we're it that course, at it's $X.XX But not inside pretty feel is can some real world, it, that think So I we best areas $X.XX of thing good absorb But

Steve Haynes

Thank you.

Operator

The from Ben Please Baird. go next comes from Kallo ahead. question

Ben Kallo

for Thanks for taking Thanks detail. all my the questions.

- you're current in just bit. that if get a out not? plant-based question about from valuations, you about then or proteins, away back mentioned And talked food has deals backing going on we you quite - you Just called you a to and what talk some - M&A. kind Could you seeing of

the Just talk there. you. Thank about made being investment

Greg Heckman

Sure. matters. Valuation always

don't that and term. thoughtful have long So hot be for as deals John says, money. for the do sense any Bunge we the we'll We'll make

is those That's as with plant the multiples. it. very and build. an of on fats methodical products that M&A side. continues how very, organic working and protein portfolio on on the organically create protein been we that's with plant who about as working We'll see the working side most done the we customers oils thoughtful already our value. with value side be lipid create the we're and On building there what we the them high most and be part specialty our the plant on where is the side, of to Any And think protein we'll

John Neppl

that projects X on that you got the over - we've just I look $XXX as the of years. lipids next identified plant pipeline you add, about and protein million if Greg, in would projects at side, the pipeline of

area, dollars an So be into we and meaningful we find important definitely investing space. will that that

Ben Kallo

Thank you.

Operator

from comes question Please Suisse. Moskow ahead. Robert go Credit from next The

Robert Moskow

have the are A is Hi. by list the of couple in the of it, and crush regionally or Greg. on where questions. going comps down weakness the are seed, missed when environment get softseeds. how might went tough I things I But you didn't quite

you to specific tough guide. for referring being a So on just guidance as our a region having And more the that as on put so I'll how just comp? this -- follow-up CapEx what mean, possible for then hey, return and mid-teens planning XXXX, that in to highly you're say, to and to then is is assume take to that - but CapEx just can base? I be your that's that that in And is incremental, little a numbers the incremental it's it that adds Thanks. spend, do in basic you your well? earnings math,

Greg Heckman

real talk softseeds, Thanks, Yes. quick. let me only so caught to there. Rob. I Thanks. that soy. me to to talked I Yes, talk didn't you

year, the with course, Of crop a tough in. lower get the be that comp with we North XX% until - new canola in this will America, the crop

which a the of second globally, we've challenged, crop to So side. sun Europe, do oil have had on And make softseeds the canola be in I crops. is think year. strong record which challenged - but that helpful, bit continue will will need little half be we'll will new in demand, We the then that

the farm to and that continue should mean are for everyone, the definitely big monitor crops. But good Ukrainian economics situation. We

But I down. see planted, should that think we'll acres be positive. be will soft net-net, and year-over-year,

John Neppl

But online, XXXX out. yes, on online of XXXX. them in most side, and commissioning going the in or a in come are early And big I mentioned is that do - come as we bugs of as the you year and CapEx working have Rob, as see about usually the I to jump range, those projects

I'll just bit from So in rate of projects, the beginning to little how a you're up in portfolio mid-teens to standpoint it. the run. be as probably productivity will and to closer between or long year takes of growth time of about lag the mean, those the that's in and efficiently think real smaller benefits big of the right as it the assessment. what they will get overall in the the total, With in things running projects, call first run fair I a return and so, But kind debottlenecking XXXX.

Robert Moskow

Okay. Great. And follow-up. a just then

team the that citing say, 'XX. really in why decisions you then what the And maybe you drove explain a Your merchandising comp to you in that's repeatable XXXX, results, in and tough you're that your really, Can is 'XX management made More that new point it strong evidence like and hey, unique? outperformance? working? makes like in -- global - wouldn't XXXX,

Greg Heckman

Yes.

more been The from hardest the system we've this forecast, more at with margins, in got kind than you challenges freight definitely America to of on year some through depend of that margins the And I in a that is if think, - We'll are Even a to way and are look one, those the the some full you're right. ago, opportunities. just difficult last in distribution Those like that the resilient year, it's hurricane of disruption the environment. North past. get think, and a are that and But definitely chain flat had than year and the executed there. they'll them. business I different we're higher just feel so created team markets, last kind things those And environment. year starting really that opportunities merchandising I slightly just prices the forecast. you the

John Neppl

going if us Rob, That the should regarding side comment some tightness the we business. some Yes, show to say, see upside. on it and really of give made is in supply we merchandising itself just I'd disruption, the

Robert Moskow

it. you. Got Thank

John Neppl

Thank you.

Operator

The ahead. next of question Please Montreal. comes go Ken from from Bank Zaslow

Ken Zaslow

years questions. couple American South which of guys. Brazil. in A this strong, had Hey. has in many actually morning, particularly Good is, we the One margin haven't been

incorporating you're kind that. about you're able thinking - some in the a the years. strength? with thing? kind make you a Because waiting for soybeans? really that the remember how Are securing don't new thinking Just I for sure somewhat that's of it's be position it to are when real seeing quite So it year, And of that by phenomenon capitalize of to of the you to are to you a about elongate type

Greg Heckman

Yes.

what That's we definitely good at think I getting. looking start with the are the here we're say overall. that we're fundamentals

Now the weather crop top that the taken off little a the some the has curves are fact of bit. reflecting the

took hurt hurt was the course, to little watch bit, top in it continue like develops. but a we'll it bit that's looks It in stabilized. Brazil. then Paraguay, Of Argentina a And how off little

is out how in this you've But that that may dislocation Brazil, reluctant about volatility in of we'll an look how situation that see in the global fundamentals you plays how that the care do farmer we've fact farmer and to with the overall. when got sell. see like optionality may seen think and that the network, and We I more we're big to as exists and election of like but be add FX and things how out, a a create course, that able there the got we've develop. talked take we opportunities to the So the responds. And we little

Ken Zaslow

on you wait secured more see? Have for fully it? included and you're it's soybeans kind not a just because Sorry. it on But of

Greg Heckman

Yes.

we a with of talk quarter, this can how would in those. and be correct. on time we wait each We're ago and it's that's where consistent we see, see what stood kind a more year You at to and

Ken Zaslow

opportunity it numbers. the of would So upside be to another

for the And then a than thinking it? a just the a if know question. rather that thoughtful of But about call, reasons I there things throughout couple And you way going wisely are. second way that mentioned have take is develop is a of You I fair approach upside in. all things they

Greg Heckman

the Very And prove quarters might nine out. Absolutely. last that fair. Yes. probably

Ken Zaslow

things it's of Is there. up a really your like little short-term - other at I'll I question, quarter, time. has questions. setting just a appreciate But way hate fair year-over-year. in the bit I such good leave And ask everybody it And you And then looks are quarter-over-quarter asked then a looking it stronger the just it? that to first

Greg Heckman

as start in out You bet. year year. we're strong extraordinary as good really QX. no. of very off But We being why QX was a January QX and don't momentum to last here currently Ken. Thanks, last carried see and

Ken Zaslow

much. Thank you, very guys,

Greg Heckman

bet. Thanks, You Ken.

Operator

our Bunge This concludes the any over session. like conference for I'd closing remarks. to to question-and-answer back turn

Greg Heckman

their in up. just pull Thank growth thank be you the for like And overall very more of on for this much. capacity I And the the good having all wrap I I'd really to to interest. execution. focused be to like position, everyone team feels to it couldn't levers. proud really and the

to forward look talking And Thank much. to so in very you the future. you

Operator

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

disconnect. now may You

Bunge Limited (BG) 9 Feb 222021 Q4 Earnings call transcript